Registering a Scheme.

There are several tax advantages from setting up and registering a stand alone group life scheme:

• Tax relief is normally available on the policy premiums paid.
• Premiums are not treated as a benefit in kind for employees.
• As long as the scheme is set up using a discretionary trust and the lifetime allowance is not exceeded, lump sum payments can normally be paid free of income and inheritance tax.

How to establish a scheme

If the scheme isn’t already registered at HM Revenue & Customs (HMRC), then it should be registered before cover can start.  

The scheme administrator will need to:

• Set up a discretionary trust.
• We recommend a separate bank account be set up.
• Register the scheme with HMRC.

How to register a scheme

The scheme administrator will need to complete an online declaration at www.hmrc.gov.uk and provide details such as the name and legal structure. This process can take up to seven working days. HMRC will issue a Pension Scheme tax reference number (PSTR), which we’ll need to be advised.