Schedule 6A to the Finance Act 1994 (premiums liable to tax at the higher rate) shall be amended as follows.
For paragraph 4 (travel insurance) there shall be substituted—
Except as provided by subsection (4) below, subsections (1) and (2) above have effect in relation to a premium which falls to be regarded for the purposes of Part III of the Finance Act 1994 as received under a taxable insurance contract by an insurer on or after 1st August 1998.
Subsections (1) and (2) above do not have effect in relation to a premium if the premium—
is in respect of a contract made before 1st August 1998; and
falls, by virtue of regulations under section 68 of the Finance Act 1994 (special accounting scheme), to be regarded for the purposes of Part III of that Act as received under the contract by the insurer on a date before 1st February 1999.
In the application of sections 67A to 67C of the Finance Act 1994 in relation to the increase in insurance premium tax effected by this section and the exception from that increase—
the announcement relating to that increase, as described in section 67A(1), and to that exception, as described in section 67B(1), shall be taken to have been made on 17th March 1998;
"the date of the change" is 1st August 1998; and
"the concessionary date" is 1st February 1999.