Finance Act 1975

13 (1) In section 397(1)—

(a) in paragraph (a) the words " or in part" shall be omitted, after the words " payable by reason of the event " there shall be inserted the words " plus the amount or value of any relevant capital payments ", and after the word " over " there shall be inserted the words " the sum of the following " and for sub-paragraph (ii) and the word " or " preceding it there shall be substituted “and

(ii) the total amount treated as a gain by virtue of paragraph (c) below on the previous happening of chargeable events”;

(b) for paragraph (b) there shall be substituted the following—

“(b) if the event is an assignment, the excess (if any) of the amount or value of the consideration, plus the amount or value of any relevant capital payments or of any previously assigned share in the rights conferred by the contract, over the sum of the following—

(i) the amount specified in subsection (l)(a)(i) above ; and

(ii) any amount treated as a gain by virtue of paragraph (c) below on the previous happenings of chargeable events”;

(c) after paragraph (b) there shall be added the following paragraph—

“(c) if the event is the occurrence of such an excess as is mentioned in section 396(1) above, the amount of the excess.”

(2) At the end of section 397(2) there shall be added the words 'and subsection (3A) of that section shall apply for the purposes of this section with the substitution of references to the contract for references to the policy'.

(3) At the end of section 397 there shall be added the following subsection—

“(3) In this section "relevant capital payments" means, in relation to any contract, any sum or other benefit of a capital nature paid or conferred under the contract before the happening of the chargeable event.”