Life assurance premium relief: relief given by deduction: limits of relief
You should check the other guidance available on GOV.UK from HMRC as Brexit updates to those pages are being prioritised before manuals.
The limits apply to premiums paid on qualifying life assurance policies taken out on or before 13 March 1984, or on policies taken out on or before 19 March 1968, and on deferred annuity contracts, before any deduction of any premium relief. It does not apply to the compulsory widows, widowers and orphans annuity relief given by ITA07/S459 and ICTA88/S273, whose payments attract relief at basic rate, see IPTM2160.
The limit is the greater of
- one-sixth of ‘total income’ for tax purposes.
It is not likely that this restriction will still be encountered in practice. If HMRC offices do see such a case, they should refer the related papers to CT&VAT (Technical) Insurance Group - see ‘Technical Help’ link on left hand bar.
Savings Schemes Office, see IPTM2120, deals with any necessary recovery of relief.
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