Did you know Relevant Life Trusts allow life assurance for directors to be tax deductible and pay out tax free?
To directors of limited companies - you can save money on your life assurance premiums under the fairly new Relevant Life Trusts. These trusts allow the contribution to be a trading expense of the business (so tax deductible) and the benefit to be paid out tax free to the nominated beneficiaries.
This might not sound that exciting but it is much cheaper when compared to paying for your protection out of your personal income after tax and national insurance.
Some clients will say “………….my contributions are already running through the business, so they are tax deductible……..” If this is the case….should that death benefit be paid out to the nominated beneficiaries, IT WILL BE TAXED!
The Did you know? section of our blog gives our friends a chance to inform our audience about business related topics. For more information on this topic contact:
tel : 01202 522452
fax : 01202 687272
Web address: www.idealfinancialsolutions.co.uk