LAM17110 | BLAGAB or eligible PHI business - annuity contracts made before 1 June 1984: FA12/S161

By virtue of FA12/S161(5), in applying the limits in FA12/S160 in any case where a person has one or more contracts with relevant persons made after 13 March 1984 and one or more contracts made on or before that date, any contract for an annuity which was made before 1 June 1984 by a friendly society other than an old society is to be regarded:

(a) as a contract for the annual amount concerned, and

(b) as a contract for the assurance of a gross sum equal to 75% of the total premiums which would be payable under the contract if it were to run for its full term or, as the case may be, if the member concerned were to die at the age of 75.

So the policies will only be exempt if they meet the tests in FA12/S160 under both (a) and (b).