Regulation 8 Amendments to the Principal Regulations

After regulation 6 there shall be inserted–

“Non-qualifying investments held on 5th April 1990

6A

(1)

Subject to the conditions specified in paragraph (2), where investments were held under a plan on 5th April 1990 in authorised unit trusts, funds of funds or investment trusts which after that date fail to satisfy the condition specified in regulation 6(3)(b) (in this regulation referred to as “non-qualifying investments”), those investments, and any further non-qualifying investments purchased in accordance with the condition in paragraph (2)(b), may continue to be held under the plan notwithstanding the provisions of regulation 6.

(2)

The conditions specified in this paragraph are–

(a)

that the total amount of the cash subscription to the plan for the year ending 5th April 1990 which was invested in non-qualifying investments on that date did not exceed one half of the subscription limit in force for that year;

(b)

that, except where non-qualifying investments are purchased with the proceeds of the sale of non-qualifying investments, the total amount of cash invested in non-qualifying investments in any year beginning after 5th April 1990 does not exceed £900.”