Income tax relief on life assurance premiums. The March 1984 Budget stopped this relief for new policies, but life policies that commenced before this date can continue to receive the relief. Relief is granted by means of a deduction from the premium, which is paid to the insurance company net of this deduction. The insurance company later claims the balance from the Inland Revenue so the amount paid and, if appropriate, invested on behalf of the policyholder is the full gross figure as shown in the policy document.

Tax relief, still available, on policies in force and taken out pre-14th March 1984. The relief was abolished at that date for all new policies. The actual rate has fluctuated, generally being half the basic rate tax.

If you took out a life insurance policy before 14th March 1984, you would be entitled to tax relief on the contract.