Relevant Life Plan
This is an extremely tax-efficient method for directors and their employees to hold their life assurance cover.
The plan itself is established and paid for by the company on the life of the individual director or employee. In the event of a claim the proceeds from the plan are paid to a discretionary trust for the benefit of the deceased’s family.
Relevant Life Plans are particularly suitable for small businesses that do not have enough eligible employees to warrant a group life scheme and/or high earning directors and employees who have substantial pension funds and do not want their death-in-service benefits to count towards their lifetime pension allowance.
As the contributions are paid by the company, they are not judged to be a benefit in kind and the contributions paid to fund the plan would normally be treated as an allowable business expense for the company.
The levels and bases of taxation and reliefs from taxation can change at any time and are dependent upon individual circumstances.
St. James’s Place has relationships with a number of carefully selected market-leading pension providers, allowing us to advise on a range of pension products. To find out more or to ensure you are in the best possible position to be prepared for any future changes, either legislative or specific to your company, please contact Wellesley Wealth Advisory on 01444244551 or via email at firstname.lastname@example.org
The value of a pension with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.