(1) Schedule 1 [Schedule 1 has been repealed, except in so far as it is applied by or under any other enactment, by virtue of the Trustees Act 2000 (c. 29) Schedule 2 Pt. 1, paragraph 1(1).] to the Trustee Investments Act 1961 (manner of investment) is amended as follows.

(2) In Part 2, for paragraph 10A [Section 10A was inserted by the Finance Act 1982 (c. 39), s. 150, substituted by S.I. 1994/1908 article 2 and amended by S.I. 1995/768 article 3.] substitute -

"10A. In any units of a gilt unit trust scheme.

A gilt unit trust scheme is an authorised unit trust scheme, or a recognised scheme, the objective of which is -

(a) to invest at least 90% of the property of the scheme in loan stock, bonds or other instruments creating indebtedness which -

(i) are transferable; and

(ii) are issued or guaranteed by the government of the United Kingdom or of any other country or territory, by a local authority in the United Kingdom or in a relevant state, or by an international organisation the members of which include the United Kingdom or a relevant state;

(b) to invest the remainder of the property of the scheme in shares, debentures or other instruments creating or acknowledging indebtedness, certificates representing securities or units in a collective investment scheme.

Sub-paragraphs (a) and (b) must be read with -