Category: Paragraph 55 (Eighth Schedule) – Long-term assurance

Paragraph 55

 

  1. Subitem (1)(a)(ii) substituted by section 98 of Act 60 of 2001.

 

  1. Item (1)(b) substituted by section 87 of Act 74 of 2002 and section 102 of Act 45 of 2003.

 

  1. Item (1)(c) substituted by section 87 of Act 74 of 2002 and amended by section 102 of Act 45 of 2003, section 76 of Act 31 of 2005 and section 114 of Act 24 of 2011 effective on 10 January 2012.

 

  1. Item (1)(d) substituted by section57 of Act 3 of 2008 and amended by section 114 of Act 24 of 2011 effective on 10 January 2012.

 

  1. Item (1)(e) added by section 114 of Act 24 of 2011 effective on 10 January 2012.

 

  1. Item (1)(f) added by section 114 of Act 24 of 2011 effective on 10 January 2012.

 

  1. Paragraph 55 amended by section 31 of Act 19 of 2001.

Paragraph 55 (Eighth Schedule) – Long-term assurance

Posted on by admin_kmos

55.    Long-term assurance

(1)     A person must disregard any capital gain or capital loss determined in respect of a disposal that resulted in the receipt by or accrual to that person of an amount-

(a)     in respect of a policy, where that person-


(i)      is the original beneficial owner or one of the original beneficial owners of the policy;


(ii)     is the spouse, nominee, dependant as contemplated in the Pension Funds Act, or deceased estate of the original beneficial owner of the relevant policy and no amount was paid or is payable or will become payable, whether directly or indirectly, in respect of any cession of that policy from the beneficial owner of that policy to that spouse, nominee or dependant; or

[Subitem (ii) substituted by section 98 of Act 60 of 2001 and section 115 of Act 25 of 2015 effective on 8 January 2016]


(iii)    is the former spouse of the original beneficial owner and that policy was ceded to that spouse in consequence of a divorce order or, in the case of a union contemplated in paragraph (b) or (c) of the definition of “spouse” in section 1 of this Act, an agreement of division of assets which has been made an order of court;


(b)     in respect of any policy, where that person is or was an employee or director whose life was insured in terms of that policy and any premiums paid by that person’s employer were deducted in terms of section 11(w);


(c)     in respect of a policy that was taken out to insure against the death, disability or illness of that person by any other person who was a partner of that person, or held any shares or similar interest in a company in which that person held any share or similar interest, for the purpose of enabling that other person to acquire, upon the death, disability or illness of that person, the whole or part of-

[Words preceding subitem (i) substituted by section 73 of Act 17 of 2017 and section 82 of Act 23 of 2018 effective on 17 January 2019]


(i)      that person’s interest in the partnership concerned; or

(ii)     that person’s share or similar interest in that company and any claim by that person against that company, and no premium on the policy was paid or borne by that person while that other person was the beneficial owner of the policy;

(d)     in respect of a policy originally taken out on the life of a person, where that policy is provided to that person or dependant by or in consequence of that person’s membership of a pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund;


(e)     in respect of a risk policy with no cash value or surrender value; or


(f)      if the amount received or accrued constitutes an amount contemplated in section 10(1)(gG) or (gH).

(2)     For the purposes of subparagraph (1), “policy” means a policy as defined in section 29A with an insurer.