31.—(1) Regulation 40 is amended as follows.
(2) In paragraph (2), for “before “basic life assurance”” substitute “, (2)(a), (7) and (10)(1) before “basic life assurance”, wherever those words occur,”.
(3) After paragraph (2) insert—
“(2A) In paragraph 3A(5)(2) before “PHI” insert “taxable” after “(6B)” insert “, (6C), (6D)”.”
(4) Omit paragraph (3).
Paragraph 4 was relevantly amended by paragraph 67(4) of Schedule 7 to the Finance Act 2007.
Paragraph 3A was inserted by section 109(8) of the Finance Act 2000 (c. 17) and relevantly amended by article 9 of S.I. 2005/3465 and paragraph 67(3) of Schedule 7 to the Finance Act 2007.