Q. Will your life cover fall within your LIFETIME PENSION ALLOWANCE and be taxed at 55%?
A. Traditionally, having life cover which can be put through as a business expense meant taking up a ‘Group Life Cover Policy’, the biggest downside of which would be it falling within the individuals ‘Lifetime Pension Allowance’ meaning 55% tax on every pound above the threshold.
With the recent introduction of Relevant Life & Critical Illness Plans this can now be easily avoided, as any lump sum pay-out does not fall within the ‘Lifetime Pension Allowance’. This is only one of the many benefits available when taking a Relevant Life & Critical Illness plan, Corporation tax relief can be claimed on the premium payments saving 20%, with the premiums not being classed as a benefit-in-kind or P11D benefit.
To find out more about this tax efficient life & critical insurance, contact us at C&D Business Protection Specialists on 0330 043 4321 or visit our website www.businessinsuranceltd.co.uk
This article is provided by C&D: Business Protection Specialists.
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