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Relief for premiums on pre-1916 insurances.
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151.—(1) Subject to the provisions of this section and of section 152, any claimant who has paid any such premium as is specified in subsection (2) shall be entitled to have the amount of tax payable by him reduced by a sum representing tax at the appropriate rate on the amount of the premium paid by him.
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(2) The premiums referred to in subsection (1) are any premiums paid by a claimant on a policy of insurance or on a contract for a deferred annuity where—
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(a) the insurance or contract was made on or before the 22nd day of June, 1916—
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(i) with any insurance company legally established in the State or in Northern Ireland or in Great Britain or in any other country to which the repealed enactments corresponding to this section would apply but for their repeal, or lawfully carrying on business in the State; or
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(ii) with a registered friendly society; or
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(iii) in the case of a deferred annuity, with the National Debt Commissioners; and
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(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 wife; and
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(c) the insurance or contract was made by him.
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(3) For the purposes of this section “the appropriate rate” means—
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(a) where the total income of the claimant from all sources estimated in accordance with the provisions of this Act does not exceed £1,000, the lesser of the two following rates:
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(i) half the standard rate of tax,
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(ii) the rate obtained by dividing the tax payable by the person referred to in subsection (1), before deduction of any relief under this section or of any double taxation relief under any agreement between the Government and the Government of any other state, but after reduction in respect of any tax which he is entitled to charge against any other person, by the amount of his taxable income, which for this purpose shall be deemed to be reduced by the amount of any income the income tax upon which he is entitled to charge as aforesaid;
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(b) where the total income of the claimant from all sources estimated as aforesaid exceeds £1,000 but does not exceed £2,000, three-fourths of the standard rate of tax;
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(c) where the total income of the claimant from all sources estimated as aforesaid exceeds £2,000, the standard rate of tax.
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(4) 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 allowance of tax shall 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.
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(5) Where the tax ultimately payable by any claimant after deducting the allowance under this section is greater than the amount of tax which would be payable if the total income of that person exceeded £1,000 or £2,000, as the case may be, the allowance under this section shall be increased by a sum representing the amount by which tax at one-fourth of the standard rate on the amount of the premiums in respect of which the allowance is made exceeds the amount of the tax at the standard rate on the amount by which the total income falls short of £1,000 or £2,000, as the case may be.
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