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E1.1332 Premium limit for qualifying policies

Although life assurance premium relief is abolished by restricting the relief to premiums becoming due and payable before 6 April 2015 and actually paid before 6 July 2015¹, the qualifying status of a policy continues to be relevant thereafter for tax purposes. This follows because a payment on surrender or maturity of a non-qualifying policy or restricted relief qualifying policy, or on the death of the life assured under such a policy, may give rise to a liability to tax in the hands of the policy holder (see E1.440–E1.456E).

FA 2013 introduced a new annual premium limit on qualifying life insurance policies. The amount of premiums payable into qualifying policies for an individual are limited to no more than £3,600 in aggregate in any 12-month period for qualifying policies issued:

1. Ìý

   (a)ÌýÌýÌýÌý on or after 6 April 2013;

2. Ìý

   (b)ÌýÌýÌýÌý in the transitional period (ie on or after 21 March 2012 and before 6 April 2013); and

3. Ìý

   (c)ÌýÌýÌýÌý before 21 March 2012 in cases where