Income Tax Act 2007 section 459

Payments for benefit of family members

Section 459 provides a tax reduction for individuals who are required to make payments to secure benefits for their surviving spouse, civil partner or children after their death.

• Individuals who are required by law or by their conditions of employment to make payments (or suffer deductions from earnings) to secure an annuity for a surviving spouse or civil partner, or to provide for surviving children, may claim a tax reduction.
• The individual must meet a UK residence requirement in order to make the claim.
• The tax reduction is calculated at the basic rate of income tax on the total payments made (or deducted) during the tax year, subject to a maximum payment amount of £100.
• For the purposes of this section, "earnings" covers salary and similar employment income (including stipends), but does not extend to pension income.