ANNEX 1:: MINOR CHANGES IN THE LAW MADE BY THE BILL This change is adverse to some taxpayers and favourable to others in principle. But it is expected to have no practical effect as it is in line with current practice. Change 83: Relief for payments to trade unions and police organisations: claims requirement: sections 457 and 458
This change introduces a claims requirement into the sections giving relief for life insurance related parts of payments to trade unions and police organisations (which are based on section 266(7) of ICTA).
In general, relief for life insurance premiums is given without a claim – section 266(1) of ICTA. This reflects the fact that in relation to qualifying ordinary life insurance policies relief is given at source, by the policyholder paying a reduced premium to the insurance company. But it is less satisfactory in relation to the life insurance related part of payments made gross to trade unions and police organisations for which relief is available in calculating net income, given that other such reliefs, and personal allowances, have to be claimed.
In practice, box 15.10 of the self assessment return does require a claim to this relief. The introduction of a formal claims requirement brings the law into line with this practice and provides a mechanism for resolving disputes.