A contract for a life annuity made before 1st January 2005 is not to be treated for the purposes of paragraph (c) of section 531(3) (policies and contracts excluded from section 530) as having not formed part of any insurance company's or friendly society's basic life assurance and general annuity business the income and gains of which are subject to corporation tax by reason only of the immediate needs annuities exclusion.

In sub-paragraph (1) “the immediate needs annuities exclusion” means the words from “other than” onwards in the definition of “annuity business” in section 431(2) of ICTA.