Relevant Life - Dear Mr U K Businessman

Take advantage of tax benefits through your life insurance

You have a successful business that gives you and your family a rewarding lifestyle that you have worked hard to achieve -so you will want to protect it. Did you know that as a director of your own company, your life cover could provide tax benefits while giving you the peace of mind that your family would be provided for should the worst happen?

If you currently pay for your life cover from your own bank account you will be paying out of post-tax income, and if you pay for it from your business account you will probably be taxed on the payment as if it were income. Larger companies avoid this tax by providing life cover for employees through a registered group ‘death in service’ scheme.

You can take advantage of the tax benefits available to larger companies by taking your life cover out through a ‘relevant life policy’. These can be written on an individual basis so are available to all companies no matter how small, meaning you could also provide life cover for your employees – even if you only have a few.

Relevant life policy tax benefits are available to both the employers and employees:

• Potential tax relief on the premiums for the employer if the local inspector of taxes agrees
• No tax assessment of premiums on the employee as a benefit in kind
• Premiums are not subject to National Insurance payments for employer or employee
• Benefits are usually payable tax free to the employee’s dependents
• Benefits do not count towards the lifetime allowance for pension purposes

As your potential financial adviser, I would be happy to tell you more about relevant life policies. Please call me on 07852 576301 to find out how a relevant life policy could work for you.

Yours sincerely

Ian Harlock
Mortgage & Protection Consultant