Commentary

E1.452B Life insurance gains—allowable deductions

Personal and employment tax

E1.452B Life insurance gains—allowable deductions

E1.452B Life insurance gains—allowable deductions

Broadly, the allowable deductions referred to in (see E1.452) are the amounts of any premiums paid under the policy (or a related policy) or contract before the chargeable event1. Any amount treated as an additional premium under FA 1984, s 72(9), in respect of an insurance made before 14 March 1984, is disregarded2.

In the case of a life annuity contract where annuity payments have been made, the deduction for premiums is reduced by the capital element (see E1.430A) in the annuity payments made3.

In the case of a capital redemption policy which has been assigned before the event for money or money's worth, the allowable deductions are the amount of consideration given for the last such assignment plus the premiums paid after the

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