Budget 2011: Life Assurance Premium Relief to be abolished

It is one of the 43 tax reliefs targeted for removal by Chancellor George Osbourne in a bid to simplify the tax system. LAPR is an income tax relief allowed to policyholders on premiums in respect of qualifying policies 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, and eligibility is only for policies providing a capital sum on death. The relief entitlement is half the basic rate of tax and is granted by permitting the policyholder to deduct the appropriate sum (currently 12.5%) when paying the prem...