Commentary

E1.1311 Qualifying policies

Personal and employment tax

E1.1311 Qualifying policies

E1.1311 Qualifying policies

Life assurance premium relief is abolished in respect of all policies with effect from, broadly, 6 April 2015 (see E1.1300).

Relief is given under ICTA 1988, s 266(2) for premiums on a policy of insurance or on a contract for a deferred annuity which fulfils specified conditions. The relief is not dependent upon the making of a claim. The insurance or contract must be on the life of an individual or on the life of his or her spouse (or, from 5 December 2005, civil partner1) and made by either of them2.

Relief is granted where there is a policy on the joint lives of husband and wife (or civil partner), but no relief is available in the case of any other joint policies. This point was considered in Wilson v Simpson3 where there was a policy on the joint lives of two directors and one of these directors sought relief on his half-share of the premium. It was decided that this was not an assurance made by him on his life within the meaning of what is now ICTA 1988, s 266(2). As the assurance had been made jointly with another person, it was not a contract made by him only, nor was the assurance made on his life, but on their joint lives. The payments he had made were his contribution towards the joint payment. Relief, therefore, was not available. On payments by a spouse or civil partner, see E1.1327.

Relief is only given for premiums paid to

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