155Meaning of “exempt” BLAGAB or eligible PHI businessU.K.
(1)In this Part “exempt” BLAGAB or eligible PHI business means BLAGAB or eligible PHI business other than non-qualifying business.
(2)Business is “non-qualifying” so far as it consists of—
(a)the assurance of gross sums, or the granting of annuities, which meet the conditions set out in the following table (which vary according to the date on which the contracts in question were made), or
(b)the effecting or carrying out of contracts for the assurance of gross sums which are made on or after 20 March 1991 and which are expressed at the outset not to be made in the course of exempt BLAGAB or eligible PHI business.
(3)This is the table mentioned above—
| Contracts to which assurance or annuities relate | Applicable limit for premiums or gross sums | Applicable limit for annuities |
|---|---|---|
| Contracts made on or after 1 May 1995 | Assurance of gross sums under contracts under which the total premiums payable in any period of 12 months exceed £270 | Granting of annuities of annual amounts exceeding £156 |
| Contracts made on or after 25 July 1991 but before 1 May 1995 | Assurance of gross sums under contracts under which the total premiums payable in any period of 12 months exceed £200 | Granting of annuities of annual amounts exceeding £156 |
| Contracts made on or after 1 September 1990 but before 25 July 1991 | Assurance of gross sums under contracts under which the total premiums payable in any period of 12 months exceed £150 | Granting of annuities of annual amounts exceeding £156 |
| Contracts made on or after 1 September 1987 but before 1 September 1990 | Assurance of gross sums under contracts under which the total premiums payable in any period of 12 months exceed £100 | Granting of annuities of annual amounts exceeding £156 |
| Contracts made on or after 14 March 1984 but before 1 September 1987 | Assurance of gross sums exceeding £750 | Granting of annuities of annual amounts exceeding £156 |
| Contracts made before 14 March 1984 | Assurance of gross sums exceeding £500 | Granting of annuities of annual amounts exceeding £104 |
(4)In applying the limits in the above table in relation to the total premiums payable in any period of 12 months (in the case of contracts made on or after 1 September 1987)—
(a)if the premiums are payable more frequently than annually, ignore an amount equal to 10% of the premiums, and
(b)ignore so much of any premium as is charged on the ground that an exceptional risk of death or disability is involved.
(5)In applying the limits in the above table in the case of contracts made on or after 1 September 1987, ignore any bonus or addition declared upon an annuity.
(6)In applying the limits in the above table in the case of contracts made before 1 September 1987, ignore any bonus or addition which—
(a)is declared upon the assurance of a gross sum or annuity, or
(b)accrues upon the assurance of a gross sum or annuity by reference to an increase in the value of any investments.
(7)In the case of a contract for the assurance of a gross sum under exempt BLAGAB or eligible PHI business made on or after 1 September 1987 but before 1 May 1995, there is a special rule if the amount payable by way of premium under the contract is increased as a result of a variation made—
(a)in the period beginning with 25 July 1991 and ending with 31 July 1992, or
(b)in the period beginning with 1 May 1995 and ending with 31 March 1996.
(8)The rule is that, in relation to any profits relating to the contract as varied, the contract is to be treated for the purposes of the above table as made at the time of the variation.