8(1)M1A policy of life insurance issued in respect of an insurance made on or before 19th March 1968 shall be treated for the purposes of section 266(3)(b) as issued in respect of one made after that date if varied after that date so as to increase the benefits secured or to extend the term of the insurance.U.K.
(2)A variation effected before the end of the year 1968 shall be disregarded for the purposes of sub-paragraph (1) above if its only effect was to bring into conformity with paragraph 2 of Schedule 9 to the Finance Act 1968 (qualifying conditions for endowment policies, and now re-enacted as paragraph 2 of Schedule 15 to this Act) a policy previously conforming therewith except as respects the amount guaranteed on death, and no increase was made in the premiums payable under the policy.
(3)M2A policy which was issued in the course of industrial assurance business in respect of an insurance made after 13th March 1984 shall be treated for the purposes of section 266(3)(c) and this paragraph as issued in respect of an insurance made on or before that date if—
(a)the proposal form for the policy was completed on or before that date; and
(b)on or before 31st March 1984 the policy was prepared for issue by the company or society concerned; and
(c)on or before 31st March 1984 and in accordance with the normal business practice of the company or society a permanent record of the preparation of the policy was made in any book or by any other means kept or instituted by the company or society for the purpose.
[F1(3A)In sub-paragraph (3) “industrial assurance business” means any industrial assurance business within the meaning given by—
(a)section 1(2) of the Industrial Assurance Act 1923, or
(b)Article 3(1) of the Industrial Assurance (Northern Ireland) Order 1979,
which was carried on before 1 December 2001.]
(4)[F2Subject to sub-paragraph (8) below,] for the purposes of section 266(3)(c) a policy of life insurance which was issued in respect of an insurance made on or before 13th March 1984 shall be treated as issued in respect of an insurance made after that date if the policy is varied after that date so as to increase the benefits secured or to extend the term of the insurance.
(5)If a policy of life insurance which was issued as mentioned in sub-paragraph (4) above confers on the person to whom it was issued an option to have another policy substituted for it or to have any of its terms changed, then, for the purposes of that sub-paragraph and section 266(3)(c), any change in the terms of the policy which is made in pursuance of the option shall be deemed to be a variation of the policy.
(6)In any case where—
(a)one policy is replaced by another in such circumstances that the provisions of paragraph 20 of Schedule 15 apply; and
(b)the earlier policy was issued in respect of an insurance made on or before 13th March 1984; and
(c)the later policy confers on the life or lives assured thereby benefits which are substantially equivalent to those which would have been enjoyed by the life or lives assured under the earlier policy, if that policy had continued in force;
then, for the purposes of section 266(3)(c), the insurance in respect of which the later policy is issued shall be deemed to have been made before 13th March 1984; and in this sub-paragraph “the earlier policy” and “the later policy” have the same meaning as in paragraph 20 of Schedule 15.
(7)In any case where—
(a)there is a substitution of policies falling within paragraph 25(1) or (3) of Schedule 15; and
(b)the old policy was issued in respect of an insurance made on or before 13th March 1984;
then, for the purposes of section 266(3)(c), the insurance in respect of which the new policy is issued shall be deemed to have been made before 13th March 1984; and in this sub-paragraph “the old policy” and “the new policy” have the same meaning as in paragraph 17 of Schedule 15.
[F3(8)Sub-paragraph (4) above does not apply in the case of a variation so as to increase the benefits secured, if the variation is made—
(a)on or after such day as the Board may by order appoint, and
(b)in consideration of a change in the method of payment of premiums from collection by a person collecting premiums from house to house to payment by a different method.]
Subordinate Legislation Made
P1Sch. 14 para. 8(8)(a) power exercised: 1.12.2001 appointed by S.I. 2001/3643, art. 2(b)
Textual Amendments
F1Sch. 14 para. 8(3A) inserted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 232(4) (with Sch. 2)
F2Words in Sch. 14 para. 8(4) inserted (29.4.1996) by Finance Act 1996 (c. 8), s. 167(5)
F3Sch. 14 para. 8(8) inserted (29.4.1996) by Finance Act 1996 (c. 8), s. 167(6)
Marginal Citations
M1Source—1970 s.19(5)
M2Source—1984 s.72(2)-(4), (6), (7)