IPTM2110 - Life assurance premium relief:
relief given by deduction
Much of the responsibility for the administration of the relief
rests with insurers. Detailed guidance about the qualifying policy
rules is at
IPTM8000 onwards. The deduction system
was introduced by FA76 and FA78, effective from 1979/80.
Relief by deduction applies where
- premiums are paid on a policy made on or
before 13 March 1984, and not subsequently enhanced or extended,
by
- an individual, the individual’s spouse or
civil partner, or both of them
- a divorced person, where the divorce took place
after 5 April 1979, and the policy was made during the marriage or,
by
ESCA31, before it
- the policy is on the life of
- the individual, or the spouse or civil partner of
the individual
- any person who was the individual’s spouse
or civil partner at the time the insurance was made, unless the
marriage was dissolved before 6 April 1979
- a UK life assurance company
- a registered or incorporated friendly society
- a branch of an overseas life assurance company
carrying on business in the UK.
The benefit is given to all UK resident individuals satisfying
the above conditions whether or not they pay income tax. Relief is
only given on policies made after 19 March 1968 if they are
’qualifying’ policies, see
IPTM2010.
