Could your life cover be more tax efficient?

By FMB on 

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Are you a company director with life assurance to provide for your loved ones?

Taking out a Relevant Life Policy could be a tax efficient way of providing life cover where the number of employees is too low for a group death-in-service scheme.
Most people pay their life insurance premiums from their post-tax income. If you have a limited company – Don’t!
You can use a Relevant Life Policy to make substantial tax savings instead!

It works like this:
• Your company pays the premiums for you
• Premiums are an allowable business expense to offset against corporation tax
• Premiums are not treated as a benefit-in-kind – so no tax for you personally
• You can insure up to 25x your total remuneration including dividends

In Brief:
• Reduce your costs using this tax efficient method for arranging your life insurance
• Substantial tax savings, especially for higher rate payers *
• Relevant Life Policies are written in trust for your chosen beneficiaries. This allows quick payment of benefits normally free from inheritance tax.
• Benefits are also payable free from Income Tax.

*savings depend on your individual tax position

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