SCHEDULES

SCHEDULE 2Transitionals and savings etc.

Part 6Savings and investment income: insurance contracts and policies made before certain dates

Pre-3rd March 2004 policy or contract: calculation of deficiencies

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1

In the case of a 2004 Act excluded policy or contract, section 541(4) (calculation of deficiencies) applies with the omission of paragraph (b) and the word “and” immediately preceding it.

2

In this paragraph “a 2004 Act excluded policy or contract” means—

a

a policy of life insurance issued in respect of an insurance made before 3rd March 2004,

b

a contract for a life annuity made before that date, or

c

a capital redemption policy where the contract was made before that date,

but excluding a policy or contract within sub-paragraph (3).

3

A policy or contract is within this sub-paragraph if on or after 3rd March 2004—

a

it is varied so as to increase the benefits secured,

b

there is an assignment of the rights, or a share of the rights, conferred by it, or

c

all or part of those rights become held as security for a debt.

4

Any exercise of rights conferred by a policy or contract counts as its variation for the purposes of sub-paragraph (3)(a).