2. Where the person assured or member, as the case may be, is resident in the United Kingdom and entitled to relief under section 19 of the Income and Corporation Taxes Act 1970, the liability of that person or member in respect of any premium paid after 6th April 1979 under a contract to which the scheme relates shall be discharged by payment of the net premium; and any payment made on account of such a premium shall be deemed to have been made after deducting 17½ per cent from an amount payable in respect of the gross premium.