Relevant Life

Relevant Life

Relevant life is a life insurance policy available to employers to provide an individual death-in-service benefit for an employee. It can help smaller businesses attract and retain high-calibre staff by offering them attractive benefits packages that are also tax efficient. It can also be a tax-efficient way for shareholder directors to take out life insurance although it shouldn’t be used for business succession planning.

 

The employer benefits from:

 

• Corporation tax relief (so long as the premiums are wholly and exclusively for the purposes of the business).
• No National Insurance contributions on the policy payments.

 

The employee benefits from:

 

• No National Insurance contributions on the policy payments.
• No benefit in kind tax charge.
• Payments do not count towards annual or lifetime pension allowances.
• Can provide a tax-free lump sum on death.

 

If the relevant life policy is held in trust, the amount of any claim isn’t generally subject to any taxation whatsoever, for the employer or employee.

 

To find out more, please call us on 01635 551926.