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Qualifying policy meaning

What does Qualifying policy mean?
In practice, a qualifying policy is a life assurance contract that meets statutory “qualifying” conditions so that, for an individual UK policyholder, any gain or proceeds on maturity, surrender or death are generally exempt from income tax under the chargeable event regime. The concept is set out in UK tax legislation and HMRC IPTM guidance and is used across England & Wales, Scotland and Northern Ireland on a consistent basis. Key features typically include regular premiums payable for at least ten years (or to earlier death), limits on premium increases, a minimum level of life cover, and restricted early access/loans. Policies are commonly endowment or whole‑of‑life contracts. Qualifying status can be lost on certain variations or assignments. Since 2013, the UK “high premium” rules restrict the exemption for policies issued (or varied) so that premiums in any 12‑month period exceed a statutory limit (commonly referenced as £3,600), with transitional protection for many older policies. Companies, trustees and personal representatives are subject to different tax rules. In Ireland, the UK “qualifying policy” exemption does not generally apply. Irish‑resident policyholders are typically subject to exit tax on gains under the domestic life assurance gross roll‑up regime, deducted by the insurer, subject to limited statutory exceptions.
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View the related News about Qualifying policy

NEWS
UK and EU competition law: NSI reforms and report; CMA merger reference; water sector overhaul; merger gun-jumping, antitrust and FSR updates—24 July 2025

In this issue: UK NSI Act UK mergers UK competition policy EU mergers EU antitrust EU Foreign Subsidies Regulation New and updated content Daily and weekly news alerts Caselex UK NSI Act Government consults on proposed reforms to the NSI Act 2021 mandatory notification regime The UK Government has launched a consultation on proposed revisions to the National Security and Investment Act 2021 (Notifiable Acquisition) (Specification of Qualifying Entities) Regulations 2021, which determine the scope of mandatory filings under the NSI Act. This follows the 2024 statutory review of the NARs and engagement through the 2023 Call for Evidence. The Government sets out targeted adjustments intended to keep the regime proportionate and effective at capturing national security risks in sensitive parts of the UK economy, whilst ensuring that the vast majority of transactions remain outside its reach. Key proposals include: New standalone mandatory notification areas: creating two separate categories for...

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NEWS
Adriatic Land 5: Court of Appeal finds BSA 2022 Sch 8 para 9 retrospective; no service charges recoverable from qualifying leaseholders (incl s20 dispensation costs) from 28 June 2022

Adriatic Land 5 Ltd v Long Leaseholders at Hippersley Point [2025] EWCA Civ 856 What are the practical implications of this case? Relevant service charge sums incurred by a landlord and already collected from leaseholders before the commencement of BSA 2022, Sch 8 remain unaffected. Conversely, where a landlord had not succeeded in recovering those categories of service charge costs from a leaseholder under a qualifying lease before the coming into force of BSA 2022, the landlord is now prevented from doing so by the new regime. In the same vein, any relevant service charges incurred after Sch 8 came into force are not recoverable. The effect is potentially far‑reaching, as other provisions within Sch 8 are phrased so as to apply retrospectively, including those addressing cladding remediation, and are therefore likely to have broader implications across similar claims. What was the background? Adriatic Land 5 Ltd (Adriatic) was entered on 12 April 2017 as the registered freehold proprietor of Hippersley Point. The property was at...

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NEWS
Property weekly update: key England and Wales case law and policy on service charges, telecoms agreements, RTM, forfeiture, IA 1986 s423, DMCCA enforcement, HMLR PG12 and hospitality licensing reforms

In this issue: Property management Leasing property Residential property Transferring property Investigating title Property insolvency Easements, rights and covenants Property development Additional property updates this week Daily and weekly news alerts New and updated content Trackers Property management Building Safety Act 2022 and recoverability of service charges In Adriatic Land 5 Ltd v Long Leaseholders at Hippersley Point [2025] EWCA Civ 856, the Court of Appeal considered whether paragraph 9 of Schedule 8 to the Building Safety Act 2022 (BSA 2022) operates retrospectively so as to bar landlords from passing on specified service charge liabilities to holders of qualifying leases. By majority, the court also concluded the pertinent BSA 2022 provisions have retroactive effect. Consequently, a landlord is prohibited from recouping certain expenditure incurred before BSA 2022 came into force on 28 June 2022 from leaseholders with qualifying leases. Accordingly, any landlord who had not reclaimed the relevant service charges from...

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View the related Practice Notes about Qualifying policy

PRACTICE NOTES
Whistleblowing under ERA 1996: qualifying and protected disclosures, detriment and dismissal protections, prescribed persons, and best-practice policies (including 2025–2026 updates: sanctions prescribed persons and sexual harassment)

This Practice Note provides an overview of the legal framework and practical context for whistleblowing under the Employment Rights Act 1996 (ERA 1996). It offers high-level guidance for organisations and supports the drafting of your whistleblowing policy and procedures. It is not a handbook for managing whistleblowing claims, which is an employment law issue. What is whistleblowing? Whistleblowing refers to a worker disclosing information about wrongdoing (ie making a disclosure), usually—though not always—arising in the workplace. For whistleblowing protections to apply, the worker must reasonably believe they are acting in the public interest and that the disclosure points to past, current, or likely future wrongdoing within one or more of these categories: criminal offences (eg fraud) failure to meet a legal obligation miscarriages of justice risks to someone’s health and safety damage to the environment from 6 April 2026, sexual harassment concealment of wrongdoing in these categories Whistleblowing legislation is contained in the ERA 1996, as...

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PRACTICE NOTES
UK Corporation Tax: Land Remediation Relief for Contaminated and Derelict Land—Eligibility, 150% Deductions, Tax Credits, Exclusions and 2024–2025 Policy Developments

What is land remediation relief? (LRR) LRR provides corporation tax relief on expenditure incurred in remediating contaminated land or in bringing derelict sites back into use. In 2009, the regime was broadened to address market failure by returning long-term derelict land to use, bringing such sites back into use. An incentive applies where land, whose development has been affected by various kinds of continuing dereliction, is brought back into productive use. The extension was intended to correct market failure by encouraging activity on sites blighted by ongoing dereliction. The relief was at risk of being discontinued after 2012; however, the 2012 Budget confirmed it would continue. The October 2024 HM Treasury Corporate Tax Roadmap, published alongside Autumn Budget 2024, notes the new Labour government’s commitment to a brownfield-first approach, prioritising the development of previously used land wherever possible. Given the time since the last review of LRR, and the potential for it to help progress the government’s objectives, the Roadmap announced that a consultation would be launched to...

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PRACTICE NOTES
Employee study or training requests: eligibility, procedure, grounds for refusal, right to be accompanied, appeals, protections and remedies (Great Britain)

Certain specified employees have the statutory right to make a request to undertake study or training This entitlement applies to employees working for organisations with 250 or more staff who meet the qualifying service requirement (see: Eligibility and qualifying period, below). Although the scheme was originally intended to be broadened to include smaller employers, the government deferred that step to allow further evaluation of the likely impact on small businesses, and there are currently no plans to proceed with any extension. The approach to counting the number of employees for these purposes is prescribed by the Apprenticeships, Skills, Children and Learning Act 2009 (Commencement No 2 and Transitional and Saving Provisions) Order 2010 (Commencement No 2 Order 2010), SI 2010/303. For a pro-forma policy aligned with the statutory arrangements, see Precedent: Policy—time off work for study and training. Official guidance on this right can be found on the GOV.UK website. The legal position on study or training rights and obligations for young employees is distinct from that applicable...

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PRECEDENTS
Shared Parental Leave (Adoption) Policy Template—Eligibility, Statutory/Company Pay, Notices, Booking and Variation, SPLIT Days, Pension/Holiday, and Return to Work (UK)

1 Introduction 1.1 The entitlement to shared parental leave (SPL) enables eligible staff to decide how they split caring for a child in the first year following adoption. This entitlement is open to the child’s adopter and one additional person, who must be that adopter’s spouse, civil partner or partner. Either, or both, of these qualifying individuals may work for the Company. 1.2 This policy [ was developed in consultation with [ the trade union OR staff association OR employees ] and ] covers all employees. The provisions on shared parental pay (ShPP) (paragraphs 5 and 6, the relevant parts of paragraphs 8 and 9, and paragraph 14) also extend to some people who are not Company employees but are in ‘employed earner’s employment’ with the Company; broadly, this refers to those for whom class 1 National Insurance contributions (NICs) are paid [ (this would include most qualifying agency workers) ]. There are limited exceptions; if you are unsure whether you are included, please speak to [ the...

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PRECEDENTS
Parental bereavement leave and pay policy (including SPBP): eligibility, notice, interaction with other statutory leave, terms during leave, and return-to-work support

1 Introduction 1.1 This policy sets out the arrangements for leave and pay when an employee experiences loss of a child (parental bereavement). It also explains the practical measures we will take to support an employee while they are absent from work, and when they return to work. 1.2 The parts of this policy concerning parental bereavement leave (PBL) [and contractual parental bereavement pay] apply solely and exclusively to employees. They do not extend or apply to agency workers, consultants [, contractors] [, volunteers] [, interns] or casual workers of any kind under this policy. However, the provisions relating to statutory parental bereavement pay (SPBP) apply, for the purposes of this policy, to employees and also to those who are not employees but are in ‘employed earner’s employment’ with us [(which would include most qualifying agency workers)]. If you are unsure whether you fall within this category, please contact [the HR department] for further guidance and clarification. 1.3 An employee may have the statutory right to unpaid...

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PRECEDENTS
Statutory Shared Parental Leave and Pay (Birth): Short-Form Employer Policy Template—Eligibility, Notices, Leave Patterns, SPLIT Days and Return to Work

1 Introduction 1.1 This policy sets out the arrangements for shared parental leave and pay in connection with the birth of a child. If you are adopting a child, please refer instead to our Shared parental leave (adoption) policy. Shared parental leave equally applies where a child is placed for adoption, and the arrangements for adoption are very similar to those that apply following the birth of a child. If you are thinking about taking shared parental leave in relation to an adoption, you should contact the HR department, who will be able to give you further information about eligibility and the notice requirements. 1.2 This policy applies to all employees. The elements of this policy that concern shared parental pay also cover individuals who are not employees but are in ‘employed earner’s employment’ with us (this would include most qualifying agency workers). If you are uncertain whether you fall within this category, please contact the HR department. No other parts of this policy apply to...

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