1(1)Section 460 of the Taxes Act 1988 (exemption from tax in respect of life or endowment business) shall be amended as follows.
(2)In paragraph (c) of subsection (2), before sub-paragraph (ai) there shall be inserted the following sub-paragraph—
“(zai)where the profits relate to contracts made on or after the day on which the Finance Act 1995 was passed, of the assurance of gross sums under contracts under which the total premiums payable in any period of 12 months exceed £270 or of the granting of annuities of annual amounts exceeding £156;”.
(3)In sub-paragraph (ai) of that paragraph, after “passed” there shall be inserted “but before the day on which the Finance Act 1995 was passed”.
(4)In subsection (3), for the words “subsection (2)(c)(ai),” in each place where they occur, there shall be substituted “subsection (2)(c)(zai), (ai),”.
(5)In subsection (4A), for “the Finance Act 1991” there shall be substituted “the Finance Act 1995”.
(6)In subsection (4B), for the words from “variation made” onwards there shall be substituted “variation made—
(a)in the period beginning with 25th July 1991 and ending with 31st July 1992, or
(b)in the period beginning with the day on which the Finance Act 1995 was passed and ending with 31st March 1996,
the contract shall, for the purposes of subsection (2)(c) above, be treated, in relation to any profits relating to it as varied, as made at the time of the variation.”