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 director.

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 inheritance tax.

Anyone looking for more information or wanting to take advantage of this opportunity please contact us on 0161 241 9744.

Policy 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.

Taxation advice is not regulated by the Financial Services Authority.

Information is based on our understanding of tax law and practice at the date this was published, so it may change.

Tweet