Tax Relief on Life Insurance

This is a guest blog from Rachel Isles of



In these difficult times a lot of businesses are looking to cut costs to improve profitability, or even just survive.  Well here’s a helping hand from the taxman that not many know about.  It’s not been widely publicised but business owners now have an opportunity to claim corporation tax relief on their own personal life cover.


–         You must be an employee (P.A.Y.E.)

–         Term must not extend past age 75

–         Cannot include critical illness or terminal illness




–         Payments made by the Company with no Benefit-in-Kind charge back to you (P11D)

–         No National Insurance implications

–         Tax relief as a business expense

–         Benefit paid tax free to beneficiaries


“Cut the cost of your life cover by up to 50%!”


If you would like more information on how this valuable tax concession can be arranged then please contact:


Rachel Isles

IFA Partner – Positive Solutions


07411 209193


(Always happy to talk things through if you have a general enquiry – Initial meetings are free of charge and without obligation).


New Junior ISAs (JISA)

The Government has confirmed that Junior ISAs will be available from 1 November 2011. These are aimed at children born on or after 3 January 2011 and older children (under the age of 18) who do not have a Child Trust Fund. 

Where the child is aged under 16, the account must be opened by a person with parental responsibility for that child.

A child or young person may have either a Cash JISA, or a Stocks and Shares JISA, or both. However, it will not be possible to open a new JISA every year – though this will not affect the ability to transfer a JISA between account managers, or the right of 16- and 17-year olds to open an ‘adult’ Cash ISA, in addition to their JISAs. 

Saving in a JISA  – As a matter of law, anybody will be able to add savings to a child’s JISA – the parents’ consent is not required. However, individual JISA providers may set their own restrictions. The maximum JISA investment for 2011/12 will be £3,600, split in any way between Cash and Stocks and Shares JISAs. The same limit will apply for 2012/13; thereafter it will be up rated each year in line with the Consumer Prices Index.

Withdrawals from JISAs – No withdrawals (other than technical withdrawals to pay JISA managers’ charges, etc) will be permitted until the holder’s eighteenth birthday, unless he or she becomes terminally ill. If the child dies, the JISA will become part of his or her estate.

For further information please visit

Pensions Law is Changing 2012

According to the BBC this week, number of people actively contributing to private company pensions schemes has halved since 1991.

This drop is largely due to the impact of the recession, which has hit households quite hard.

It is no surprise that the government has taken steps to counteract this decline, with the introduction of changes to the pension law from 2012. 

This will affect all employers with at least one worker in the uk.  So if you are running a business, even a one-man enterprise, as long as you draw a salary, it will affect your business !

Briefly, employers will need to :

  • Automatically enroll certain workers into a pension scheme.
  • Make contributions on their workers behalf.
  • Register with The Pensions Regulator
  • Provide workers with information about the changes, such as how it will affect them.

The changes will be introduced in stages over 4 years starting in 2012.

Please contact us if you would like to know more and we can put you in touch with an Independant Financial Advisor.  Tel: 01225 751302.


Investment Ideas – Higher Rate Tax Payers

Higher rate tax payers looking to invest may consider National Savings and Investments index-linked savings certificates.

These have been very popular in the past, and it was this popularity that saw their sales suspended in July last year.  Banks and Building Societies appeared to be unhappy that savers’ cash were heading away from their products towards NS&I certificates.

The new NS&I certificates are not as good as the previous version, with tigher limits on the amount invested and terms.  However, the tax free status of NS&I index-linked bonds will still be attractive to higher-rate tax payers.