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HMRC internal manual

Insurance Policyholder Taxation Manual

From
HM Revenue & Customs
Updated
, see all updates

Exclusions to the annual premium limit

ICTA88/SCH15/PARAA1

The following policies are excluded from the annual premium limit:

Protected Policies

A policy issued before 21 March 2012 is a protected policy.

Qualifying policies issued before 21 March 2012 will not be affected by the annual premium limit unless:

  • they are subjected to a variation (see IPTM2080) on or after 21 March 2012 and there is a breach of the annual premium limit following this variation (see IPTM2076) or
  • they are assigned (see IPTM2081) on or after 6 April 2013.

Pure Protection Policies

ICTA88/SCH15/PARAA1 & PARAA6

Policies (referred to as “pure protection” policies in the legislation) which:

  • have no surrender value and are not capable of acquiring a surrender value or
  • under which the benefits payable cannot exceed the amount of the premiums paid except on death or disability.