Relevant life policies


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Relevant life policies

Whilst we are not authorised to give investment advice, an IFA contact of ours has brought to our attention the opportunity to arrange life cover for an employee (including directors) which offer the following benefits:-

  1. Premiums payable by the employer do not normally constitute a benefit-in-kind chargeable to income tax on the employee.
  2. Premiums payable by the employer are not normally liable to National Insurance Contributions (employer or employee)
  3. Premiums can be treated as an allowable expense in computing the tax liability of the employer provided that HMRC is satisfied that they qualify under the “wholly and exclusively” rules.

The premiums paid will not form part of the employee’s annual allowance for pension premium relief purposes and the benefit will not form part of the employee’s lifetime pension allowance.

Inheritance tax exemption can be obtained on the payments received under the policy if paid through a discretionary Trust.

Should this be of interest to you please contact us.