Finance Act 1984

72 Withdrawal of life assurance premium relief

(1) Relief shall not be granted under section 19 of the Taxes Act (premium relief on post-1916 life policies etc.) in respect of premiums payable under any policy issued in respect of an insurance made after 13th March 1984, except where the relief relates to part only of any such payment as falls within paragraph 11 of Schedule 3 to the [1978 c. 42.] Finance Act 1978 (part payments to friendly societies).

(2) A policy which was issued in the course of industrial assurance business, within the meaning of the [1923 c. 8.] Industrial Assurance Act 1923 or, as the case may be, the [S.I. 1979/1574 (N.I. 13).] Industrial Assurance (Northern Ireland) Order 1979, and which was so issued in respect of an insurance made after 13th March 1984 shall be treated for the purposes of this section as issued in respect of an insurance made on or before that date if—

(a) the proposal form for the policy was completed on or before that date, and

(b) on or before 31st March 1984 the policy was prepared for issue by the company or society concerned, and

(c) on or before 31st March 1984 and in accordance with the normal business practice of the company or society a permanent record of the preparation of the policy was made in any book or by any other means kept or instituted by the company or society for the purpose.

(3) For the purposes of subsection (1) above, a policy of life insurance which was issued in respect of an insurance made on or before 13th March 1984 shall be treated as issued in respect of an insurance made after that date if the policy is varied after that date so as to increase the benefits secured or to extend the term of the insurance.

(4) If a policy of life insurance which was issued as mentioned in subsection (3) above confers on the person to whom it was issued an option to have another policy substituted for it or to have any of its terms changed, then, for the purposes of that subsection and subsection (1) above, any change in the terms of the policy which is made in pursuance of the option shall be deemed to be a variation of the policy.

(5) In subsection (8) of section 7 of the [1975 c. 7.] Finance Act 1975 (early surrender or conversion of life policies), after the word " apply " in the second place where it occurs, and in subsection (5) of section 8 of that Act (surrender etc. of policies after four years), after the word " apply ", there shall be inserted—

“(a) to a policy in respect of the premiums on which relief under section 19 of that Act is not available, by virtue of section 72 of the Finance Act 1984 ; or

(b)”.

(6) In any case where—

(a) one policy is replaced by another in such circumstances that the provisions of subsection (1) of section 34 of the [1982 c. 39.] Finance Act 1982 apply (variation in life or fives assured), and

(b) the earlier policy was issued in respect of an insurance made on or before 13th March 1984, and

(c) the later policy confers on the life or lives assured thereby benefits which are substantially equivalent to those which would have been enjoyed by the life or lives assured under the earlier policy, if that policy had continued in force,

then, for the purposes of subsection (1) above, the insurance in respect of which the later policy is issued shall be deemed to have been made before 13th March 1984; and in this subsection " the earlier policy " and " the later policy " have the same meaning as in the said section 34.

(7) In any case where—

(a) there is a substitution of policies falling within sub-paragraph (1) or sub-paragraph (3) of paragraph 2 of Schedule 15 to this Act, and

(b) the old policy was issued in respect of an insurance made on or before 13th March 1984,

then, for the purposes of subsection (1) above, the insurance in respect of which the new policy is issued shall be deemed to have been made before 13th March 1984 ; and in this subsection " the old policy " and " the new policy " have the same meaning as in paragraph 9 of Schedule 1 to the Taxes Act.

(8) In any case where, before the passing of this Act—

(a) an individual, in exercise of the right conferred on him by paragraph 5(a) of Schedule 4 to the [1976 c. 40.] Finance Act 1976, has deducted an amount from a payment in respect of a premium falling within subsection (1) above, and

(b) in accordance with paragraphs 4(1) and 5(b) of that Schedule, the Board have made good to the person to whom that payment was made the deficiency arising from that deduction,

then, without prejudice to any other power of the Board to recover sums which have been paid to make good any such deficiency (being a deficiency which would not have arisen if this Act had been in force on the date referred to in subsection (1) above), those sums may be recovered by the Board by deduction from any further sums which, after the passing of this Act, fall to be paid to the person concerned in accordance with the said paragraphs 4(1) and 5(b).

(9) The aggregate of any amounts which, as mentioned in subsection (8)(a) above, an individual has deducted from payments in respect of premiums falling within subsection (1) above may be recovered by the person to whom those payments were made as if it were an additional premium due under the policy on 5th August 1984; but no account shall be taken of that additional premium—

(a) in determining whether the policy is a qualifying policy within the meaning of Schedule 1 to the Taxes Act; or

(b) for the purposes of section 334 of that Act (conditions for tax exempt business); or

(c) for the purposes of section 395 of that Act or paragraph 9 of Schedule 2 to the [1975 c. 7.] Finance Act 1975 (chargeable events legislation).