HMRC internal manual

Insurance Policyholder Taxation Manual

IPTM2110 - Life assurance premium relief: relief given by deduction

Much of the responsibility for the administration of the relief rests with insurers.Detailed guidance about the qualifying policy rules is at IPTM8000 onwards.The deduction system was introduced by FA76 and FA78, effective from 1979/80.

Relief by deduction applies where

  • premiums are paid on a policy made on or before 13 March 1984, and not subsequently enhanced or extended, by



  • an individual, the individual’s spouse or civil partner, or both of them
  • a divorced person, where the divorce took place after 5 April 1979, and the policy was made during the marriage or, by ESCA31, before it


  • the policy is on the life of



  • the individual, or the spouse or civil partner of the individual
  • any person who was the individual’s spouse or civil partner at the time the insurance was made, unless the marriage was dissolved before 6 April 1979


  • the policy is with



  • a UK life assurance company
  • a registered or incorporated friendly society
  • a branch of an overseas life assurance company carrying on business in the UK.

The benefit is given to all UK resident individuals satisfying the above conditionswhether or not they pay income tax. Relief is only given on policies made after 19 March1968 if they are ’qualifying’ policies, see IPTM2010.

Further reference and feedback IPTM1013