The Taxation of Equitable Life (Payments) Order 2011
| Jurisdiction | UK Non-devolved |
| Citation | SI 2011/1502 |
| Year | 2011 |
2011 No. 1502
Capital Gains Tax
Corporation Tax
Income Tax
Inheritance Tax
Tax Credits
The Taxation of Equitable Life (Payments) Order 2011
Made 15th June 2011
Coming into force in accordance with article 1(1)
The Treasury make the following Order in exercise of the powers conferred by section 1(3) and (4) of the Equitable Life (Payments) Act 20101
In accordance with section 1(5) of that Act, a draft of this Order was laid before Parliament and approved by a resolution of each House of Parliament.
Citation, commencement, effect and interpretation
1.—(1) This Order may be cited as the Taxation of Equitable Life (Payments) Order 2011 and shall come into force on the day after the day on which it is made.
(2) This Order has effect in relation to authorised payments made after the day on which this Order is made.
(3) In this Order “authorised payment” means a payment to which section 1 of the Equitable Life (Payments) Act 2010 applies.
Capital gains tax
2. An authorised payment shall be disregarded for the purposes of capital gains tax.
Corporation tax
3. An authorised payment shall be disregarded for the purposes of the Corporation Tax Acts.
Income tax
4. An authorised payment shall be disregarded for the purposes of the Income Tax Acts.
Inheritance tax
5.—(1) For the purposes of the Inheritance Tax Act 19842—
(a)
(a) in determining the value of a person’s estate immediately before that person’s death, no account shall be taken of any value attributable to a right to, or interest in, an authorised payment made after that person’s death; and
(b)
(b) in determining the value of relevant property immediately before a ten-year anniversary for the purposes of the charge under section 643of the Inheritance Tax Act 1984, no account shall be taken of any value attributable to a right to, or interest in, an authorised payment made on or after that ten-year anniversary.
(2) In this article—
“estate” has the meaning given by section 272 of the Inheritance Tax Act 1984;
“relevant property” has the meaning given by section 584of that Act; and
“ten-year anniversary” has the meaning given by section 61 of that Act.
Tax Credits
6. In calculating investment income in accordance with regulation 10 of the Tax Credits (Definition and Calculation of Income) Regulations 20025, an authorised payment shall be disregarded.
Michael Fabricant
Jeremy Wright
Two of the Lords Commissioners of Her...
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