There are two main categories.
The first category, originally of much greater significance, is obsolescent and has been since 1984. It is, though, in the nature of life contracts that they tend to last a long time, and relief continues to be given on policies taken out on or before 13 March 1984, provided they are not subsequently varied so as to increase the benefits or extend the term. This type of relief, on qualifying life policies, and on others taken out on or before 19 March 1968, applies to premiums paid on a contract for life insurance or on a deferred life annuity contract. It is given at source through a net payment of premium to the insurer. The insurer recoups the deduction directly from HMRC. This relief is referred to as LAPRD, meaning Life Assurance Premium Relief by Deduction. The scheme is known as PRBD, Premium Relief by Deduction, and is administered by Savings Schemes Office.
The second category, which is still live, covers three reliefs, all of which are minor in terms of the amount of relief available to the claimant and total cost to the Exchequer. These are
This category of relief is given in coding, through self assessment or by repayment. Sometimes relief is given by the employer under a ’net pay’ arrangement under which PAYE is operated on pay after the amount qualifying for relief has been deducted.
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