Legislation targeting employee benefit trusts has been introduced, but Net Relevant Life has not changed.
A relevant life policy is a term assurance policy taken out by an employer on the life of an employee. Premiums are paid for by the employer.
The purpose must be to give a benefit on death before age 75, if tax exemptions are to be retained.
Relevant life policies benefit from tax relief because they provide 'excluded benefits', and the features must include the following:
The benefits include:
So get out there now and sell more life insurance. The IFA industry has been hooked on the 1% for too long. It is time to look at some of the benefits of life insurance planning through companies. These plans can only be used by employers who are applying for a new plan on the life of an employee. The term 'employee' does not include a partner in a partnership, a member of an LLP or a sole trader.