Removal of Life Assurance Premium Relief

From 6 April 2015 HM Revenue and Customs removes Life Assurance Premium Relief (LAPR).

What is LAPR?

LAPR is an income tax relief applied to regular premiums paid into certain qualifying life insurance policies that were issued on or before 13 March 1984. LAPR has been 12.5% of regular premiums since 1989. Premium increases or incremental payments since 13 March 1984 are not eligible for LAPR.

What products are impacted?

Products impacted by the removal of LAPR include Clerical Medical With-Profit endowment, Whole of Life With-Profit and Low Cost Endowment type policies.

What is Clerical Medical doing as a result of this change?

Clerical Medical has agreed to fund this 12.5% on behalf of customers until their policy ends.

Will my policy change or do I need to make any decisions due to the removal of LAPR?

No. With Clerical Medical funding what was LAPR, customers with these qualifying policies will continue to pay the same premium, have the same sum assured, retain their qualifying policy status and there is no change to the customer’s tax position. No action is required by customers or Independent Financial Advisers.

Please note that the decision to fund this tax relief is specific and unique to LAPR and the impacted qualifying policies. It sets no obligation on us to fund any future changes to tax relief on other products.