A registered trade union or eligible emplyers' association (see CTM41290) is exempt from tax on:

non-trading income, and

chargeable gains,

which are used for provident benefits where the union or eligible employers' association is prevented by law or its own rules from ‘assuring to’ any persons amounts over certain limits. Note that trading income is not exempt.

The maximum limits are:

Sum Assured Annuity
17 March 1987 to 31 March 1991 £3,000 £625
From 1 April 1991 £4,000 £825

The relief allowed depends upon the type of fund from which the benefits are paid, either hypothecated or general.

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