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Life assurance premium relief—overview

E1.1300 Nature and history of relief

Subject to certain conditions life assurance premium relief under ICTA 1988, s 266 was due to a taxpayer who took out a life assurance policy or contracted for a deferred annuity with a permitted insurance company before 14 March 1984. The amount of the relief is calculated by reference to the amount of the premium allowable at an appropriate rate of tax and this relief is usually given by deduction from the amount of premium payable.

Life assurance premium relief was originally introduced by ITA 1853, s 54. Certain modifications to the original relief¹ were made with effect for contracts of insurance made after 22 June 1916². These provided in particular:

1. Ìý

   (a)ÌýÌýÌýÌý that relief should be given at a uniform instead of at a variable rate; and

2. Ìý

   (b)ÌýÌýÌýÌý that (save in connection