IPTM2070 | Qualifying policies: rules from 6 April 2013

Annual premium limit from 6 April 2013

ICTA88/SCH15/PARAA1

Overview

From 6 April 2013, the annual limit for premiums payable by an individual beneficiary under qualifying policies is £3,600 in any 12 month period.

This 12 month period begins on the date of the event e.g. the issue or variation of a policy. The £3,600 premium limit includes both premiums payable in that period on a beneficiary’s -see IPTM2071 - qualifying policies as well as any additional premiums that could be payable as a result of options or terms in those policies.

The annual limit is an aggregate amount that generally applies to all qualifying policies held by a beneficiary at any one time, including transitional period policies. See IPTM2075.

The annual premium limit applies from 6 April 2013 as follows:

1. All policies issued on or after 6 April 2013

2. All policies issued in the transitional period (i.e. on or after 21 March 2012 and before 6 April 2013)

3. Policies issued before 21 March 2012 which become restricted relief qualifying policies after that date (see IPTM2076).

Tax Exempt Savings Plans - see IPTM8405 issued by Friendly Societies are included within the annual premium limit.

Beneficiaries under a policy

The premium limit applies to all beneficiaries under a policy – see IPTM2071.

Exclusions

Certain policies are excluded from the annual premium limit – see IPTM2072.