Part 8

Other reliefs
Chapter 6

Miscellaneous other reliefs

Payments for life insurance etc

Payments for benefit of family members
459
1
An individual who pays a sum, or from whose earnings a sum is deducted, in a tax year is entitled to a tax reduction for the tax year if—
a
the sum is paid or deducted under an Act or the individual’s terms and conditions of employment,
b
the sum is for the purpose of—
i
securing a deferred annuity after the individual’s death for the individual’s surviving spouse or civil partner, or
ii
making provision after the individual’s death for the individual’s children,
c
the individual meets the requirements of section 460 (residence etc), and
d
the individual makes a claim.
2
The amount of the tax reduction is equal to income tax at the basic rate on the total of all the sums paid or deducted in the tax year.
3
But the maximum amount of the tax reduction under this section to which an individual is entitled for a tax year is equal to income tax at the basic rate on £100.
4
A tax reduction under this section is given effect at Step 6 of the calculation in section 23.
5
There is no entitlement to a tax reduction under this section in respect of a contribution paid by any person under—
a
Part 1 of the Social Security Contributions and Benefits Act 1992 (c. 4), or
b
Part 1 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7).
6
This section is also subject to sections 192 to 194 of FA 2004 (relief for pension contributions).
7
In this section “earnings” has the meaning given by section 62 of ITEPA 2003.