47.—(1) In Schedule 7 to the Finance Act 1991(1) (basic life assurance and general annuity business) paragraph 16 (transitional relief for old annuity contracts) is amended as follows.
(2) In sub-paragraph (1) (which provides for an amount to be treated as a sum disbursed as expenses of management for the period) for “a sum disbursed as expenses of management of the company for that period”, substitute “expenses payable which fall to be brought into account for that period at Step 3 in section 76(7) of the Taxes Act 1988,”.
1991 c. 31. Paragraph 16(1) has been amended by section 67 of the Finance Act 1997 and further amended by paragraph 6(10) of Schedule 33 to the Finance Act 2003: there are other amendments which are not relevant for present purposes.