Statement of Practice 11 (1979)
Published 1 November 1979
© Crown copyright 1979
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(While not officially classed as obsolete, life insurance premium relief is no longer due on any policies taken out after 13 March 1984. Reproduced below for further information.)
The Commissioners for HM Revenue and Customs (HMRC) have given further consideration to the question of premium relief as it applies to policies effected on the lives of children. They remain of the opinion that (as specified in the Statement of Practice SP 4/79 issued on 28 February 1979) no relief is in strictness due on premiums on a policy taken out by a child of tender years (a child under age 12), but they are prepared to relax somewhat the terms of that Statement.
1. In view of the special problems of industrial branch business the Commissioners for HMRC will not contest life assurance premium relief on premiums on all industrial branch juvenile policies and similar policies issued by registered Friendly Societies as part of their tax exempt business, subject in each case to the limit in paragraph 2(3), Schedule 14, Income and Corporation Taxes Act (ICTA) 1988 (formerly paragraph 11(3), Schedule 4, FA 1976).
2. Where an ordinary branch policy other than a Friendly Society policy referred to above is taken out on the life of a child and is assigned to him or he possesses or acquires the whole interest in the policy, relief on premiums paid by the child may be allowed (provided that the other conditions are satisfied):
- (a) where the policy was taken out after the child had attained age 12
- (b) where the policy was taken out prior to 1 March 1979 and before the child attained age 12
- (c) where the policy was taken out on or after 1 March 1979 before the child attained age 12 and he has attained that age
Note: this statement is only relevant for policies still qualifying for life assurance premium relief (which was withdrawn for policies issued after 13 March 1984).