(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.