Commentary

E1.1351 Imputation of recovery of relief to policy holders

Personal and employment tax

E1.1351 Imputation of recovery of relief to policy holders

E1.1351 Imputation of recovery of relief to policy holders

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

Where following a surrender etc any amount has been retained by the life office concerned from the proceeds arising by way of recovery1, such recovery is to reduce and, if large enough, extinguish the tax relief2 otherwise obtainable on the relevant premiums paid under the policy3.

In the case of a recovery under ICTA 1988, s 2694 (surrender etc after four years), the relevant premiums are only those payable in the year in

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