Tax Efficient Life Insurance

Many directors of limited liability companies have some form of life insurance in place to protect their families, themselves and their financial situation. Some of them are directors of companies large enough to justify the execution of a recorded group that will pay for this cover in a very tax efficient:

or payments made by the company will not be treated as a P11D benefit
Ø The company will usually be able to claim tax relief on company payments
Advantages and is usually due to the beneficiaries free of the director.

However, to date, the directors of smaller companies have lost on this because it was not possible to have a one-man scheme, and providers of risk group is likely to meet less than 5 members. These directors will pay for personal projects from their post-tax income or corporate account. If it is from the account of society then the payments normally be treated as income in the hands of the director and taxed accordingly.

But after the recent changes in legislation, group life, protection specialist Bright Grey has recognized there is a gap in the market and has introduced a plan to individual lives and small businesses. Provider will cover individual directors for up to 15 times their salary (including dividends), using the law 'relevant life'. The tax treatment is similar to a system of group registered with the added advantage that the benefits do not impact on pension benefits for life, so they are ideal for high-earning executives who may face this problem .......