E1.1334 Rules for qualifying policies
Although life assurance premium relief is abolished by restricting the relief to premiums becoming due and payable before 6 April 2015 and actually paid before 6 July 20151, the qualifying status of a policy continues to be relevant for tax purposes. A payment on surrender or maturity of a non-qualifying policy or restricted relief qualifying policy, or on the death of the life assured under such a policy, may give rise to a liability to tax in the hands of the policy holder (see E1.440–E1.456E).
FA 2013, Sch 9, para 3 inserted new paras B1–B3 into ICTA 1988, Sch 15 Pt 1, introducing new rules and requirements relating to qualifying policies.
For a life assurance policy issued on or after 6 April 2013 to be a qualifying policy, it must be beneficially owned by one individual or by two or more individuals together, or it must be protected. For this purpose a policy is protected if it is a new policy in substitution for a pre-21 March 2012 policy2. However, a new policy issued on or after 6 April 2013 cannot be a qualifying policy if the old policy was not a qualifying policy by virtue of3:
• the premium limit for qualifying policies4;
• rights not beneficially owned by individuals5;
• an assignment (other than an excepted assignment) on or after 6 April 20136;
• failure to provide a required statement7; or
• an earlier application of this provision8.
Before 6 April 2013, pre-existing rules on