Income and Corporation Taxes Act 1988

274 Limits on relief under sections 266 and 273. U.K.

(1) M1 The aggregate of the premiums or other sums in respect of which relief is given to any person under section 266 shall not exceed £1,500 in any year of assessment or one-sixth of that person’s total income, whichever is the greater.

(2) M2 The aggregate of the relief given under sections 266 and 273 in respect of premiums or sums payable for securing any benefits other than capital sums on death shall not exceed the amount of the income tax calculated at the appropriate rate on £100.

(3) M3 In subsection (2) above “the appropriate rate”—

(a) in relation to premiums to which section 266 applies, means [F1 12.5 per cent.];

(b) in relation to other payments, means the basic rate of income tax.

(4) M4 War insurance premiums shall not be taken into account in calculating the limits of one-sixth of total income or of £100 mentioned in this section.

In this subsection “war insurance premiums” means any additional premium or other sum paid in order to extend an existing life insurance policy to risks arising from war or war service abroad, and any part of any premium or other sum paid in respect of a life insurance policy covering those risks, or either of them, which [F2 is] attributable to those risks, or either of them.

Textual Amendments

F1 1988(F) s.29—from 6April 1989.Previously

“15 per cent.”.

F2 Word in s. 274(4) substituted (with effect in accordance with s. 134(2) of the amending Act) by Finance Act 1996 (c. 8), Sch. 20 para. 20

Marginal Citations

M1 Source-1970 s.21(1); 1976 Sch.4 21

M2 Source-1970 s.21(3); 1975 Sch.2 6

M3 Source-1970 s.21(4); 1975 Sch.2 6; 1980 s.29; 1976 Sch.4 21; 1987 Sch.15 2(5)

M4 Source-1970 s.21(5)