SCHEDULES

SCHEDULE 2Transitionals and savings etc.

Part 7Savings and investment income: gains from contracts for life insurance etc. (personal portfolio bonds)

The non-variation condition

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1

A policy or contract meets the non-variation condition if it has not been varied on or after 16th July 1998 so as—

a

to increase the benefits secured, or

b

to extend the term of the policy or contract.

2

Any exercise of rights conferred by a policy or contract counts as its variation for the purposes of this paragraph.