(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) a policy of assurance on the life of any person issued, or (b) a contract within the meaning of Article 2(2)(b) of Directive 2002/83/EC of the European Parliament and of the Council of 5 November 2002 [OJ No. L345, 19.12.2002, p.1] entered into, on or after 1 January 2001 by an assurance company in the course of carrying on the business of life assurance;

"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 -