12(1)At the end of section 396(1) there shall be added the words " and where the terms of the contract provide for the payment of a capital sum on death and the contract was made on or after 10th December 1974, the death shall be treated for the purposes of this section and section 397 below as a surrender in whole of the rights conferred by the contract. "
(2)At the end of section 396(2) there shall be added the words " and are not at the time of the event held by the original beneficial owner ".
(3)Sub-paragraph (2) above applies in relation to any event happening on or after 10th December 1974.