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Industrial Assurance And Friendly Societies

Volume 932: debated on Wednesday 25 May 1977

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asked the Chancellor of the Exchequer when regulations will be made under paragraph 13(3) of Schedule 4 to the Finance Act 1976.

The Industrial Assurance Commissioner will be making regulations shortly in connection with the proposed new arrangements under which from April 1979 tax relief on life assurance premiums will be deductible at the time that the premium is paid. Under these regulations industrial assurance companies and collecting friendly societies will be able, if they wish, to adopt arrangements under which, when the premium payable does not exceed £4 every four weeks, the policy holder will obtain relief in respect of premium payments not directly but in the form of an increased sum assured. The Industrial Assurance Commissioner is satisfied that to grant an option to all policy holders however small their policies, to receive the relief directly would involve substantial administrative costs for the friendly societies and industrial assurance companies, and would not be in the best interests of all policy holders.