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HMRC internal manual

Insurance Policyholder Taxation Manual

From
HM Revenue & Customs
Updated
, see all updates

Friendly society tax exempt policies: qualifying policy rules: hybrid policies providing mainly sickness benefits

Where a tax exempt policy

  • provides cover for sickness or other infirmity, under which at least 60% of the premium is attributable to that cover, and
  • provides a sum assured on death

it will be a qualifying policy even if it does not provide the minimum sum assured ondeath, described in IPTM8420.

The other qualifying policy conditions still need to be met, such as the requirement for aminimum premium paying term and regular premium payments of equal or rateable amount.

Further reference and feedback IPTM1013