Life Assurance for Company Directors

If you are a company director, you may want to consider a more cost effective way of paying for your life assurance arrangements.

Did you know that arranging life cover for yourself can be treated as a legitimate business arrangement and, with your company paying the premiums, there is also the potential of reducing your company’s Corporation Tax liability?

A policy can be taken out and paid for by your business and put in trust for your dependants or desired beneficiaries. The results being:

  •  a lump sum paid to your chosen beneficiaries in the same way a personal policy would work

but with,

  • no National Insurance liability,
  • no benefit-in-kind liability,
  • the likelihood of these payments being classed as allowable deductions for your business, which may help to reduce any potential Corporation Tax liability and,
  • the payments not counting towards an individual’s lifetime or annual allowances.

Please remember tax law may change in the future and will depend on your individual circumstances.

If you would like more information or would like to take advantage of this opportunity please contact Business Support Shop.