Carrs Farmhouse
37 Overend, Elton, Peterborough, PE8 6RU
admin@tuto.org.uk
Email us at any time
01733 235221
All calls to and from our landlines are recorded to meet regulatory requirements
Carrs Farmhouse
37 Overend, Elton, Peterborough, PE8 6RU
admin@tuto.org.uk
Email us at any time
01733 235221
All calls to and from our landlines are recorded to meet regulatory requirements
Relevant Life Assurance (RLA)
What is Relevant Life Assurance (RLA)?
Relevant Life Assurance (RLA) is a tax-efficient, employer-paid life insurance policy for employees or directors, providing a tax-free, lump-sum death-in-service benefit. It is designed for SMEs unable to justify a full group scheme, offering up to 30x income coverage without being considered a taxable benefit.
Key Features and Benefits
Tax Efficiency: Premiums are generally considered a business expense, reducing corporation tax, and do not trigger P11D (benefit in kind) tax for employees.
Coverage: Pays out on death or terminal illness diagnosis (life expectancy < 12 months).
Suitability: Ideal for limited company directors, SMEs, and high-earners looking to top up existing coverage.
Structure: Must be written in trust to ensure proceeds fall outside the employee’s estate for inheritance tax.
Limitations: Policies usually end at age 75, have no cash-in value, and cover ends if employment terminates.
Difference from Standard Life Insurance
Unlike personal life insurance, RLA is paid for by the company, meaning it does not use the employee’s post-tax income. It is specifically designed to meet the strict “relevant life” tax regulations