You are here: Home - Insurance - News -

HMRC reveals new limits on life insurance tax relief

Written by:
HM Revenue & Customs (HMRC) is to restrict the tax relief allowable on qualifying life insurance policies.

The new rules will limit tax relief to a maximum of £3,600 in any 12 month period.

The existing regime, which dates back to 1968, means for both qualifying and non-qualifying life insurance policies, corporation tax at a special rate of 20% applies to investment returns accruing in the hands of insurers and friendly societies.

To date there has been no maximum limit on the investment premiums payable into a qualifying policy, allowing individuals to obtain unlimited relief from higher rates of income tax.

However, the Government has now said it will limit the relief available, as it does not believe it justifiable or affordable to offer unlimited income tax relief in the current savings and fiscal climate.


Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co... Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
Life cover can cost less than £10 a month

Half of British adults would give a spare £10 to a member of their family, while a quarter would give...