IKAP LIFE Ltd2nd Floor Blenheim Court

Cheadle, CheshireSK8 2JY

0161 870 2983 | info@ ikaplife .com | www. ikaplife .com

Relevant Life PoliciesGet the taxman to help pay for coverA Relevant Life policy is a single life, stand-alone death-in-service plan, providing benefits on an individual basis.

Key benefits Tax advantages for directors, shareholders and employees of small limited companies Premiums are not taxed as benefit in kind Available for spouse’s cover, if they receive income from the business, salary, dividend or both Premiums are an allowable company expense for corporation tax purposes for the employer Cover now up to 20 times annual salary and/or dividends for clients aged 39 or under Cover 15 times annual salary and/or dividends for clients aged 40 and over

There are various advantages to this.

Although the company pays the premiums, they are not taxed as a benefit in kind - which can offer huge savings, especially for a higher rate taxpayer.

So while it's mainly aimed at high earners, a relevant life policy can be suitable for any employee. What’s more, the payments may also be treated as an allowable expense for the employer in calculating their tax liability.

This means it's also particularly suitable for small businesses that don't have enough eligible employees to warrant a group life scheme.

HMRC consider the death benefits paid under a Relevant Life policy to be ‘excluded’ meaning they are excluded from Income and Capital Gains Tax.

Companies that run Relevant Life policesAEGON | AVIVA | Bright Grey | Legal & General | LV= | PruProtect | Royal London | Zurich

Current tax law This is based on our understanding of current UK tax law and may change in the future.

Updated 30/09/2014

Authorised and regulated by the Financial Conduct Authority # 583120