Does writing to HMRC explaining the purpose of a business protection policy ensure its tax treatment? Paul McDowell provides an answer…
When advising on business protection policies it is broadly accepted that it is good practice to write to the client’s tax office about their policy. Indeed, many providers even supply suggested wording for advisers to use, including details on setting out the purpose of the policy, whether the client intends to claim tax relief on the premiums, and how they expect any pay out to be treated.
So, while there’s no doubt that informing HMRC is sensible, how effective are these letters?
