Providing added peace of mind for your people is a benefit to both them and your business. As part of a wider benefits package, a tax efficient Relevant Life Plan (RLP) can help to attract and retain the best people. Which in turn will help your business to thrive and grow.
RLP offer life cover that is highly tax efficient – in fact, we can show you how this type of policy may be able to save up to 50% on the cost of a conventional life policy.
A RLP is a simple term assurance product popular among owners of Limited Companies. We listen to your circumstances and advise on a suitable policy to meet your needs. Set up and paid for by the employer, the Plan will pay out a tax-free lump sum (under legislation current in tax year 2019/20) to the employee’s loved ones, should they pass away during the term of the policy.
RLPs make it possible for employers with just a few employees, high earners and Directors to take advantage of ‘death in service’ benefits.
If all qualifying conditions are met and your accountant is aware of the tax consequences of the RLP, then the arrangement can save over 40% if the life assured is a basic rate tax payer, or almost 50% if the life assured is a higher rate tax payer (under legislation current in tax year 2020/21).
We can work directly with your Accountant, answering their queries and ensuring you benefit from the tax savings.
Comparing the cost of a Non-Relevant Life Insurance policy to a Relevant Life Plan
In our experience, we have often seen Company Directors who are paying too much for their personal life assurance from their personal finances.
A RLP will help ensure you are covered, without compromise, in a tax efficient manner. We’re happy to discuss the excellent savings that may be possible with your Accountant and advisors from the outset.
Unfortunately, sole traders, equity partners of a partnership or equity members of a Limited Liability Partnership cannot take advantage of RLPs. If that’s you, ask us what your best alternatives are.