IPTM2100 - Life assurance premium relief: outline

Life assurance premium relief was available until 5 April 2015 on life insurance policies taken out on or before 13 March 1984.

From 6 April 2015 tax relief for payments for life insurance is limited to:

• an individual’s payment to a trade union where part of the payment is attributable to superannuation, life insurance or pension benefits
• an individual’s payment to a police organisation where part of the payment is attributable to superannuation, life insurance or pension benefits.

See IPTM2150 for details.

These reliefs are given in coding, through self-assessment or by repayment. Sometimes relief is given by the employer under a ’net pay’ arrangement under which PAYE is operated on pay after the amount qualifying for relief has been deducted.