A relevant life insurance policy below provides a great tax efficient opportunity.

If the policy in not trust the proceeds may be taxable for IHT. I will be pleased to give you the contact of an IFA who can help to review all your policies including business interruption and key person insurance.

These policies are a tax efficient way of providing personal life insurance benefits for company directors. A Relevant Life Plan is a Term Assurance plan available to employers who wish to provide a benefit to their employees. Because it meets certain legislative requirements, it passes as a tax efficient benefit for employees.

What makes it cost effective?

Relevant Life Plan are similar to other types of life cover except they aim to offer a tax efficient way for an employer to arrange life cover benefits fro an employee.

As such, Relevant Life Plans are usually viewed as an allowable business expense by HRMC so all premiums and paid benefits qualify for full Income Tax Relief, National Insurance relief and Corporation Tax relief.

This means premiums could be reduced by up to 49% compared to a typical life policy if you are a higher rate tax payer. For a basic rate tax payer this figure could be up to 40%. Life Policy