5(1)Section 547 shall be amended as follows.
(2)In subsection (1), for paragraph (b) there shall be substituted—
“(b)if, immediately before the happening of that event, those rights were in the beneficial ownership of a company, or were held on trusts created, or as security for a debt owed, by a company, the amount of the gain shall be deemed to form part of the company’s income (chargeable under Case VI of Schedule D) for the accounting period in which the event happened;”.
(3)After subsection (7) there shall be inserted—
“(8)Subsection (1)(b) above shall not have effect as respects—
(a)a policy of life insurance issued in respect of an insurance made before 14th March 1989,
(b)a contract for a life annuity made before that date, or
(c)a capital redemption policy issued in respect of an insurance made before that date, or issued by a company resident in the United Kingdom in respect of an insurance made on or after that date.”