Halve the cost of your life assurance

Would you like to ensure that your loved ones will be looked after if you are not around (and save tax in the process)?

If so, let your company pay your life assurance policy premiums and pave the way to reduce your Corporation Tax bill.

Of course, this is not as simple as just changing the monthly direct debit over from your personal account to your company account – it involves setting up Relevant Life Policies.

A policy can be taken out and paid for by your business and put in trust for your dependants or desired beneficiaries. The results being:

a lump sum paid to your chosen beneficiaries in the same way a personal policy would work

but with,

no National Insurance liability,
no benefit-in-kind liability,
the likelihood of the policy premiums being classed as allowable deductions for your business, which may help to reduce any potential Corporation Tax liability and,
the policy premiums not counting towards an individual’s lifetime or annual allowances.

Please see the example below (click image to enlarge);