R e l e v a n t   L i f e


I n s u r a n c e 


Are you a company director looking to provide life assurance to help provide financial security for your employees, or your own loved ones? 


As a company director would you like to consider a more cost effective way of paying for your life assurance arrangements?

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Relevant Life Cover






Did you know that arranging life cover for yourself can be treated as a legitimate business arrangement and, with your company paying the policy 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




No National Insurance liability
No benefit-in-kind liability

Likelihood of the policy premiums being classed as

allowable deductions for your business

May help reduce any potential Corporation Tax liability

Policy premiums 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


Relevant Life Cover Explained - Example

Mr A paying personally for life assurance

Cost MCS Ltd paying for a Relevant Life Policy Cost
Monthly policy premium paid from his post tax income £200pm Monthly policy premium paid by MCS Ltd £200pm
Pre-tax income needed to fund £200 at Income Tax rate of 40% and employee National Insurance at 2% additional rate. £344.83 No Income Tax, employee's or employer's National Insurance payable £200
Employer's National Insurance contributions at 13.8% on this amount of salary paid by MCS Ltd £47.59 No employer's National Insurance contribution £0.00


Total cost to MCS Ltd and Mr A




Less Corporation Tax at 20% as an allowable deduction. Salary, Income Tax and National Insurance are allowable expenses against Corporation Tax   Less Corporation Tax at 20% as the plan is an allowable deduction


Total cost to Mr A and MCS Ltd




Total cost to MCS Ltd







Mr A paying personally costs him and the business £313.93pm


MCS Ltd paying through a Relevant Life Policy costs £160.00


 A saving of £153.93 pm or a saving of over 49%