Finance Act, 1980

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Relief in respect of life assurance premiums and certain other payments.

6.—(1) Section 143 of the Income Tax Act, 1967 , is hereby amended:

(a) by the substitution in paragraph (b) of subsection (2) of “spouse” for “wife”,

(b) by the insertion in subsection (6) of “, in a case in which the husband is assessed to tax in accordance with the provisions of section 194,” after “the same deduction shall”,

and the said paragraph (b) and the said subsection (6), as so amended, are set out in the Table to this subsection.

TABLE

(b) the insurance, or, as the case may be, the deferred annuity, is on the life of the claimant or on the life of his spouse; and

(6) Where a premium is paid by a wife out of her separate income in respect of an insurance on her own life or the life of her husband or a contract for any deferred annuity on her own life or the life of her husband, the same deduction shall, in a case in which the husband is assessed to tax in accordance with the provisions of section 194, be made as if the premium were a premium paid by her husband for an insurance on his own life or for a contract for a deferred annuity on his own life, and this section shall apply accordingly.

(2) Section 152 (1) of the Income Tax Act, 1967 , is hereby amended by the addition thereto of the following proviso:

“Provided also that in a case where the claimant is a husband who is assessed to tax in accordance with the provisions of section 194, this subsection shall have effect as if ‘£2,000’ were substituted for ‘£1,000’.”.