The Industrial Assurance (Life Assurance Premium Relief) Regulations 1977

Regulation 2

SCHEDULE 1 PRESCRIBED SCHEME

1.  The scheme applies to every industrial assurance or collecting society contract under which premiums are payable to an industrial assurance company or collecting society which has adopted the scheme in accordance with regulation 3.

2.  Where the person assured or member, as the case may be, is resident in the United Kingdom and entitled to relief under section 19 of the Income and Corporation Taxes Act 1970, the liability of that person or member in respect of any premium paid after 6th April 1979 under a contract to which the scheme relates shall be discharged by payment of the net premium; and any payment made on account of such a premium shall be deemed to have been made after deducting 17½ per cent from an amount payable in respect of the gross premium.

3.  The net premium shall be a sum equal to 82½ per cent of the gross premium, except that—

(a) in relation to an industrial assurance contract, where the said sum is not a multiple of one halfpenny, it shall be rounded off to the nearer halfpenny, or, if the said sum is a multiple of one half of one halfpenny, to the nearer penny; and

(b) in relation to a collecting society contract, where the said sum is not a multiple of one penny, it shall be rounded off to the nearer penny, or, if the said sum is a multiple of one halfpenny, to the nearer even penny.