IPTM8010 - Introduction

A qualifying policy is a life insurance policy from a UK company, or a UK branch or permanent establishment of an overseas resident insurer, whose terms meet a complex set of conditions. The qualifying policy conditions are contained in ICTA88/SCH15. These include rules about the policy term, regularity and level of premiums paid, and the minimum sum assured. From 6 April 2013, an annual premium limit for premiums payable under relevant policies also applies – see IPTM2070. Where a policy does not meet these conditions it is commonly referred to as a ‘non-qualifying policy’, although that is not a statutory term.

Qualifying policies do not normally give rise to chargeable event gains.

The general rules described in IPTM8015 onwards apply to policies other than tax exempt policies from friendly societies. These will mainly be endowment policies, although the guidance applies to whole of life policies and term assurance policies, modified in some respects.

The rules for friendly society tax exempt policies are described in IPTM8400 onwards.