730F. Deduction of tax on the happening of a chargeable event.

(1) Subject to subsection (1B), in this section and in section 730G, 'appropriate tax', in connection with a chargeable event in relation to a life policy, means a sum representing income tax on the amount of the gain treated in accordance with section 730D as thereby arising -

(a) subject to paragraph (b), where the chargeable event falls on or after 1 January 2001, at the rate of -

(i) 25 per cent where the policyholder is a company, and

(ii) 41 per cent in the case of any other policyholder,

(b) where, in the case of a personal portfolio life policy, the chargeable event falls on or after 26 September 2001, at the rate of 60 per cent, and

(c) where the chargeable event falls on or before 31 December 2000, at a rate of 40 per cent.

(1A)

(a) In this subsection -

'first tax', in relation to a life policy, means the appropriate tax that was accounted for and paid in accordance with section 730G in respect of a chargeable event within the meaning of section 730C(1)(a)(iv) in relation to

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