Life Assurance Premium Relief (LAPR).
The income tax relief allowed to policyholders on premiums in respect of qualifying policies (qv) issued before 14 March 1984.
There is no relief on premiums in excess of £1500 or 1/6th of total income whichever is the greater.
Eligibility for tax relief is only in respect of policies providing a capital sum on death; the policy must be on the life of the policyholder or his/her spouse by whom premiums must be paid; the pair must reside in the UK at the time of payment.
The relief entitlement is one half of the basic rate of tax and this granted by permitting the policyholder to deduct the appropriate sum (currently 12.5 percent) when paying the premium.
Alternatively a policyholder can elect to pay the gross premium and reclaim the tax.
For policies surrendered in the first four years the Inland Revenue will ‘clawback’ (qv) some of the tax relief.

You should check with your financial advisor, accountant or tax advisor for current rules regarding tax relief issues

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