IPTM2140 - Life assurance premium relief: payments to friendly societies

Relief used to be available for premiums paid on mixed benefit policies issued by friendly societies. The relief was one half of that part of the payment which provided for death benefits. The part going into sickness or disability benefits was not relievable.

Mixed benefit policies were those

• made in the course of tax exempt life or endowment business
• for a gross sum on which no bonuses may be declared or accrue
• that also afforded provision for sickness or other infirmity and at least 60 per cent of the premium was so attributable.

Such policies are thought no longer to be written. If HMRC offices encounter such claims, they should advise BAI Financial Services Team.