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FA 1994, ss 67A–67C, which were inserted by FA 1997, s 29(1), contain provisions to prevent an attempt to avoid a new rate of tax by forestalling through pre-payment or an extension of the term of the contract. This applies to changes in rate of tax before 1 June 2017.

If an increase in the rate of tax from a specified date is announced¹ and:

1. Ìý

   •ÌýÌýÌýÌý a premium under a contract of insurance is received by the insurer on or after the date of the announcement but before the date of change, and

2. Ìý

   •ÌýÌýÌýÌý the period of cover provided by the contract begins on or after the date of change, the premium shall be taken to be received on the date of the change of rate²

If an insurance contract³:

1. Ìý

   •ÌýÌýÌýÌý provides cover for an extended period ending after the first anniversary of the change of rate, and

2. Ìý

   •ÌýÌýÌýÌý the premium is received by the insurer on or after