FAQ's – Life Insurance – Qualifying Policies - HM Revenue & Customs

4) Qualifying policy issued in the transitional period
where the premiums payable exceed £3,600
Maria takes out a qualifying policy on 30 March 2012 with annual premiums payable
of £4,000.
The premiums payable exceed the £3,600 annual premium limit.
Relief in full would be available for £4,000 per annum from 30 March 2012 until 5
April 2013.
From 6 April 2013 relief up to £3,600 is available but Maria cannot take out any more
qualifying policies because her annual premium limit is exhausted by the policy she
took out on 30 March 2012.
5) Qualifying policy issued in the transitional period
where the premiums payable do not exceed £3,600
Helen takes out a qualifying policy on 30 March 2012 with annual premiums payable
of £2,500.
In May 2014, Helen takes out another policy of which she is the sole beneficial owner
and that meets all the current requirements for a qualifying policy. Annual premiums
are £500. The aggregate of her premiums is £2,500 + £500 = £3,000. This policy is
also a qualifying policy because the aggregate premiums payable do not exceed the
£3,600 limit.
In August 2014, Helen takes out a further policy of which she is the sole beneficial
owner and that meets all the current requirements for a qualifying policy. Annual
premiums are £1,000. Helen must consider her existing premiums in addition to the
new policy to establish whether this is a qualifying policy. In total her premiums are
now £2,500 + £500 + £1,000 = £4,000. Helen's premiums now exceed the annual
limit. As such, the policy issued in August 2014 cannot be a qualifying policy as the
£3,600 limit has been exceeded.
If Helen had taken out a policy with annual premiums payable of £600 instead this
would have used the available balance of her annual premium limit and so would
have been a qualifying policy.
6) More than one policy is issued in the transitional
period and the premiums payable do not exceed
£3,600 per policy but exceed £3,600 in aggregate
Eddie takes out 5 qualifying policies as follows:
30 March 2012
31 March 2012
1 April 2012
2 April 2012
3 April 2012