Valid from 06/04/2006
39U.K.In paragraph 14 (enhanced protection: relevant contributions), after sub-paragraph (2) insert—
“(3)A contribution is not a relevant contribution for the purposes of paragraph 13(a) if—
(a)it may only be applied for or towards the payment of premiums under a policy of insurance on the life of the individual,
(b)the policy is issued, or issued in respect of insurances made, before 6th April 2006,
(c)there is no right to surrender any rights under the policy,
(d)the terms of the policy are not varied significantly during the period beginning with 6th April 2006 and ending with the individual's actual death so as to increase the benefits payable under the policy or extend the period during which benefits are so payable, and
(e)no benefits are paid, or other payments made, under (or on the surrender of rights under) the policy except by reason of the individual's death;
and any exercise of rights conferred by the policy is to be regarded for this purpose as a variation.
(4)A contribution is not a relevant contribution for the purposes of paragraph 13(a) if it is paid—
(a)by a sponsoring employer,
(b)under a relevant hybrid arrangement, and
(c)solely in respect of the provision in respect of the individual of lump sum death benefits which are defined benefits or cash balance benefits.
(5)A “relevant hybrid arrangement” is a hybrid arrangement under an occupational pension scheme—
(a)which subsequently becomes a money purchase arrangement that is not a cash balance arrangement, and
(b)under which lump sum death benefits would have been payable in respect of the individual if the individual had died on 5th April 2006.”