HS347 Personal term assurance contributions to a registered pension scheme (2015)
Updated 6 April 2017
© Crown copyright 2017
This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gov.uk.
Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned.
This publication is available at https://www.gov.uk/government/publications/personal-term-assurance-contributions-to-a-registered-pension-scheme-hs347-self-assessment-helpsheet/hs347-personal-term-assurance-contributions-to-a-registered-pension-scheme-2015
Most contributions you make to a registered pension scheme, and to some overseas pension schemes, qualify for tax relief. However, you can’t get tax relief on pension contributions that are used to pay premiums under personal term assurance policies, unless they relate to a protected policy.
A term assurance policy is regarded as personal if it terminates the first time an insured person dies, as with all single life policies and most joint life policies, or if all the insured individuals are members of the same family.
Contribution used to pay premiums
Contributions for personal term assurance that cannot receive tax relief are:
- contributions that are life assurance premium contributions
- paid to an insurance company to provide death benefits under a personal (non-group) life policy
- not a protected policy
The amount of the personal term assurance contribution is the amount of the premiums paid to your personal (non-group) life policy. If you contribute £300 to a scheme and from that £100 is used as premium for your personal (non-group) life policy under the scheme, you may get tax relief on the remaining £200 contribution.
What is a group life policy
Many occupational pension schemes use life policies to insure death benefits (known as group policies). These group policies cover a group of unconnected people and will pay out on the death of many scheme members. These policies are not personal (non-group) life policies and so contributions may get tax relief, subject to the normal pension contribution rules.
What is a personal (non-group) life policy
A personal (non-group) life policy is a policy of insurance where the only benefits payable are as a consequence or in anticipation of death, and the policy:
- only covers one person
- covers more than one person, but the terms of the policy say that it pays out on the death of only one of the group of people covered by the policy
- covers a group of people and will pay out benefits on the death of more than one person, but all the people covered by the policy are connected - this means that all these people are members of the same family
A protected policy
Protected policies are policies that were taken out before certain dates in 2006 and 2007.
A variation in the terms of a protected personal (non-group) life policy that increases the benefits payable under the policy, or extends the period over which benefits are payable, will cause the policy to lose its protected status.
More information
The scheme administrator of your specific registered pension scheme or the insurance company providing the life policy will know if you have paid premiums for a personal term assurance policy, and whether it is a protected policy.
Contact
Online forms, phone numbers and addresses for advice on Self Assessment.