Relevant Life Plan is a life assurance plan which can include critical illness, that provides benefits for employees of a business. The plan itself is established and paid for by the company on the life of the employee or director. 

What are the possible benefits?

Contributions will be paid for by the company, they will not be treated as a benefit in kind so will not be taxable on the life assured for whom the plan has been established

This may provide a significant tax saving, particularly for higher and additional rate tax payers. 

The contribution paid to fund the plan should be treated as an allowable business expense for the company. 

Level of cover available - are there any limits to this?

The cover itself will be calculated on a multiple of salary. The multiple used will vary based on the Provider selected and the age of the employee.

Providers will also stipulate a maximum level of cover an individual is entitle to - for example an upper limit of £5,000,000.

Trusts and relevant life plans

Relevant Life Plans will always be written into a master discretionary trust at outset.

Having benefits paid through a trust ensures that they can be paid direct to the life assured's beneficiaries. The benefits will be paid free of Income and Inheritance Tax at the point of transfer but will then be within the estate of the beneficiaries.

These are just a selection of the solutions available.We would love to sit down with you and discuss your own personal circumstances, before tailoring a solution specifically for your needs.