Income Tax (Trading and Other Income) Act 2005 section 121

The non-variation condition

Section 121 defines the non-variation condition, which requires that a policy or contract has not been changed on or after 16 July 1998 in ways that increase benefits or extend its term.

• A policy or contract meets the non-variation condition if it has not been varied on or after 16 July 1998.
• The condition is breached if the variation increases the benefits secured under the policy or contract.
• The condition is also breached if the variation extends the term of the policy or contract.
• Any exercise of rights conferred by the policy or contract counts as a variation for these purposes.