(1) In this section -

'assurance company' has the meaning assigned to it by section 706 of the Taxes Consolidation Act, 1997;

'new policy' means a contract entered into by an assurance company which is a policy of assurance on the life of any person issued on or after 1 January 2001;

'old policy' means a contract entered into by an assurance company in the course of carrying on a foreign life assurance business within the meaning of section 451 of the Taxes Consolidation Act, 1997, and issued on or after 1 December 1992 and before 1 January 2001.

(2) Where any interest in a new policy or in an old policy is comprised in a gift or an inheritance, then any such interest -

(a) shall be exempt from tax, and

(b) shall not be taken into account in computing tax on any gift or inheritance taken by a donee or successor,

if, but only if, it is shown to the satisfaction of the Commissioners that -

(i) such interest is comprised in the gift or inheritance at the date of the gift or at the date of the inheritance;

(ii) at the date of the disposition, the disponer is neither domiciled nor ordinarily resident in the State