(1) Chapter 5 of Part 26 of the Principal Act is amended -

(a) in section 730C(1)(a) by substituting the following for subparagraph (iv):

"(iv) the ending of a relevant period, where such ending is not otherwise a chargeable event within the meaning of this section, and for the purposes of this subparagraph 'relevant period' in relation to a life policy means a period of 8 years beginning with the inception of the policy and each subsequent period of 8 years beginning immediately after the preceding relevant period; but where -

(I) premiums under the terms of a policy are paid annually or at more frequent intervals, and

(II) the total amount of such premiums does not exceed €3,000 per annum,

then this subparagraph shall apply as if each reference to 8 years were a reference to 12 years,",

(b) in section 730D -

(i) in subsection (1) by substituting "subject to subsections (1A) and (2)" for "subject to subsection (2)",

(ii) by inserting the following after subsection (1):

"(1A) Where -