Paragraph 7

there is a disposal by way of gift which consists of or includes, or is made in connection with, a policy of insurance on the life of the donor or his spouse F1or civil partner or on their joint lives, and

the benefits which will or may accrue to the donee as a result of the gift vary by reference to benefits accruing to the donor or his spouse or civil partner (or both of them) under that policy or under another policy (whether issued before, at the same time as or after that referred to in paragraph (a) above),

the reference in paragraph (a) to a policy on the joint lives of the donor and his spouse F2or civil partner includes a reference to a policy on their joint lives and on the life of the survivor; and

the reference in paragraph (b) to the benefits accruing to the donor or his spouse or civil partner (or both of them) includes a reference to benefits which accrue by virtue of the exercise of rights conferred on either or both of them.