4(1)In sub-paragraph (7) of paragraph 9 of Schedule 5 (persons listed for the purpose of the conditions the fulfilment of which makes a pre-19th March 1991 settlement a qualifying settlement)—
(a)after paragraph (d) there shall be inserted the following paragraphs—
“(da)any grandchild of a settlor or of a settlor’s spouse;
(db)the spouse of any such grandchild;”and
(b)in paragraph (e), for “(d)” there shall be substituted “(db)”.
(2)For sub-paragraph (11) of that paragraph there shall be substituted the following sub-paragraph—
“(11)In this paragraph—
“child” includes a step-child;
“grandchild” means a child of a child;
“participator” has the meaning given by section 417(1) of the Taxes Act.”
(3)Sub-paragraph (1) above shall be disregarded for the purpose of determining whether either of the conditions set out in sub-paragraphs (5) and (6) of that paragraph became fulfilled at any time before 17th March 1998.