For company directors, there is a potentially more
cost-effective way of paying for life assurance.
It is now possible for personal life cover to be legitimately paid for by a
company and for the company to receive tax relief on the premiums without any
tax or National Insurance liability arising as a benefit in kind on the
Payments may also be treated as an allowable expense for the
employer in calculating their tax liability, providing that the local inspector
of taxes is satisfied they qualify under the ‘wholly and exclusively’ rules.
What’s more, the benefits could be paid to dependents free of
Anyone looking for more information or wanting to take
advantage of this opportunity please contact us on 0161 241 9744.
proceeds/benefits may be paid free of Inheritance Tax when written under Trust.
Relevant life policies are not designed as a replacement to registered
group life schemes. In most cases a registered group scheme will be more
appropriate where there are sufficient lives to warrant one.
advice is not regulated by the Financial Services Authority.
is based on our understanding of tax law and practice at the date this was
published, so it may change.