Relevant Life Policies

Relevant life policies are a way of providing death-in-service benefits on an individual basis no matter how small your business is.

What are the benefits?

• Although the company makes the payments, they’re not treated as a benefit in kind, and so would not be included in your income tax assessments. This can be a significant saving, particularly for a higher-rate taxpayer.

• Unlike a registered group scheme, the benefit will not form part of your annual or lifetime pension allowance.

• These payments may be treated as an allowable expense for the company in calculating their tax liability, as long as the local inspector of taxes is satisfied they qualify under the ‘wholly and exclusively’ rules.

Who are relevant life policies suitable for?

• Small businesses that don’t have enough eligible employees to warrant a group life scheme.

• High-earning employees or directors who have substantial pension funds and don’t want their benefits to form part of their lifetime allowance.

• Self-employed or equity partners’ staff.

Relevant life policies aren’t suitable for self-employed or equity partners themselves.

What is the maximum amount of cover under a relevant life policy?

• You can apply for any amount of cover up to a maximum of £5,000,000.

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Please note when reading any information on this website: past performance is no guide to future performance. The value of an investment may go down as well as up and an investor may not get back the full amount invested. Before investing, please ensure that you have read the information set out in the simplified prospectus, which includes full details of the charges. Any material available is directed only at persons in the UK and is not an offer or invitation to buy or sell securities. Opinions expressed on this website represent the views of Stephen Baker Financial Consultants Ltd at the time of publication, are subject to change, and should not be interpreted as investment advice.

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