Relevant Life Cover is a tax-efficient life insurance policy, allowing companies to offer death-in-service benefits to their staff. It must be written in trust and the employer is automatically a trustee. Up to four additional trustees can be named – one of these can be the employee. The employee will select their beneficiaries (usually their family or next of kin).
Directors' and executive income protection insurance is taken out by the business on these key employees. The payment received from the policy would go straight to the company, the company will be the ones that ultimately pay the director with the money received from the policies. The payout is in the region of 55%-70% of the directors salary.
Its worth noting that the company is the one that takes the Income protection policy out so it can offset as an expense, so premiums are deductible as a business expense.
Self-invested Personal Pension (SIPP)
one of the many benefits of a SIPP is it allows the holder to invest a huge variety of investments ranging from shares, gilts, ETF's and many more. A SIPP allows the holder to manage the portfolio and align it with their own needs and goals.
SIPPs work much the same way as other personal pensions. You add money to your pension as and when you like. The government pays in an extra 20% in pension tax relief.
If you pay a higher rate of tax, you’ll usually be able to claim back even more with your tax return. Once it’s in your SIPP, your money can grow free from UK capital gains and UK income tax. The tax benefits will depend on your individual circumstances and tax rules are subject to change.
Small Self Administered Scheme (SSAS)
This is a company scheme, its set ip by a trust deed and allows the members/employers, more flexibility over the assets held in the scheme. Tax relief is restricted to the normal levels which 2018/19 is £3600 or 100% of UK earnings. The annual allowance will apply to all contributions.
The trustees of the SSAS can invest in a wide variety of investments such as Commercial property, land, stocks and shares, OEICS, Investment trusts and many more.