We’ve detailed below the legislation that governs relevant life plans.
A relevant life plan is defined in subsection 393B(4) of the Income Tax (Earnings and Pensions) Act 2003 (‘ITEPA’) as:
(a) an excepted group life policy as defined in section 480 of the Income Tax (Trading and Other Income) Act 2005,
(b) a policy of life insurance, the terms of which provide for the payment of benefits on the death of a single individual, and with respect to which:
(i) condition A in section 481 of that Act would be met if paragraph (a) in that condition referred to the death, in any circumstances or except in specified circumstances, of that individual (rather than the death in any circumstances of each of the individuals insured under the policy) and if the condition did not include paragraph (b), and
(ii) conditions C and D in that section and conditions A and C in section 482 of that Act are met, or
(c) a policy of life insurance that would be within paragraph (a) or (b) but for the fact that it provides for a benefit which is an excluded benefit under or by virtue of paragraph (a), (b) or (d) of subsection(3) of ITEPA s.393B.
So the conditions that need to be met if a plan is to be a relevant plan within the ‘single life’ category set out in (b) are:
(a) on the death in any circumstances of each of the individuals insured under the policy who dies under an age specified in the policy that does not exceed 75, or
(b)on the death, except in the same specified circumstances, of each of those individuals who dies under such an age."
The information provided is based on our current understanding of the relevant legislation and regulations and may be subject to alteration as a result of changes in legislation or practice. Also it may not reflect the options available under a specific product which may not be as wide as legislations and regulations allow.
All references to taxation are based on our understanding of current taxation law and practice and may be affected by future changes in legislation and the individual circumstances of the investor.