What is the income tax relief available under section 458 of the Income Tax Act 2007?

Section 458 provides income tax relief for individuals making payments to police organisations. Relief applies to the portion of payments attributable to superannuation, life insurance or funeral benefits, known as the qualifying amount. The relief equals half the qualifying amount, subject to a maximum of £100 per tax year, and is deducted from net income.

What conditions must be met to qualify for relief under ITA 2007 section 458?

To qualify, the total qualifying amounts across all payments to police organisations in the tax year must be at least £20. The individual must also satisfy the residence requirements set out in the Act and must make a formal claim for the relief. A police organisation means an organisation of persons in police service.

How is the relief under section 458 calculated and applied?

The relief equals half the qualifying amount attributable to superannuation, life insurance or funeral benefits. The maximum relief is capped at £100 per tax year. It is applied as a deduction when calculating net income, reducing taxable income before tax rates are applied. For example, a £180 qualifying amount yields £90 relief.

What happens if the qualifying amount results in relief exceeding the £100 cap?

If half the qualifying amount exceeds £100, the relief is capped at £100. For instance, if the qualifying amount is £250, half would be £125, but only £100 can be deducted from net income. The cap applies regardless of the total payments made to police organisations during the tax year.

Income Tax Act 2007 section 458

Payments to police organisations

Section 458 provides income tax relief for individuals who make payments to police organisations, where part of the payment relates to superannuation, life insurance or funeral benefits.

Relief is available where part of a payment to a police organisation (the "qualifying amount") is attributable to superannuation, life insurance or funeral benefits, and the total qualifying amounts for the tax year are at least £20.
The relief equals half the qualifying amount, subject to a maximum of £100 per tax year.
The individual must meet residence requirements and must make a claim to receive the relief.
Relief is given as a deduction in calculating the individual's net income for the tax year.

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