HMRC internal manual

Insurance Policyholder Taxation Manual

Life assurance premium relief: limits of relief on premiums other than those securing capital sums on death

The amount of premiums securing benefits other than capital sums on death on which relief may be given is limited to £100.

An employer may arrange for deferred annuity contracts to be taken out in the names of or on behalf of employees. If an employee contributes to this, any relief due may have been given by deduction if the contract has been running for long enough.

If an employee makes compulsory (W&O) contributions, see IPTM2160, and the employer also pays contributions on the employee’s behalf, only one £100 limit is available.

Further reference and feedback IPTM1013