Introduction Details of the Section
2.Subsection (1) amends section 152(8) of the Income Tax Act 2007 (ITA). This ensures that gains from policies and contracts falling within section 531(3) of the Income Tax (Trading and Other Income) Act 2005 (certain life insurance policies, offshore capital redemption policies and contracts for life annuities) will not be eligible income for the purposes of claiming income tax loss relief under section 152(1) of ITA.
3.Subsection (2) provides that subsection (1) will apply to losses relating to the years 2009-10 onwards. This means that there is no scope to claim income tax loss relief for any losses relating to 2009–10 and subsequent years.
4.Subsection (3) provides that in certain circumstances, subsection (1) will also apply for 2008-09 so there is no scope to claim income tax loss relief:
	in relation to new policies or contracts made on or after 1 April 2009;
	for policies or contracts varied on or after 1 April 2009 so as to increase the benefits secured. For this purpose, the exercise of an option in the policy or contract, on or after 1 April 2009, is treated as a variation;
	where all or part of the rights are assigned on or after 1 April 2009 to the person claiming a deduction; or
	where all or part of the rights conferred by the policy or contract become held, on or after 1 April 2009, as security for a debt.
5.Subsection (4) provides that where claims for income tax loss relief relating to 2008-09 or an earlier tax year have been made and part of those losses remain unused in 2009-10 or subsequent years, there will be no deduction available under section 153 of ITA for the unused losses in 2009-10 and subsequent years.