Income protection payments are taxable in the UK at the basic rate of 20%. However, there are ways to reduce your income tax liability on these payments. For example, you may be able to claim a tax relief on the premiums you have paid for your income protection policy.
What types of income protection payments are taxable in the UK.
Income protection payments are taxable in the UK if they are considered to be earned income. This includes payments for work that has been done in the past, such as sick pay or maternity leave, as well as payments for work that will be done in the future, such as a salary or wages. However, some types of income protection payments, such as those from a personal injury or death, are not considered to be taxable.
Life insurance can be a tax deductible business expense in certain cases. For example, if the life insurance policy is taken out on a key employee, the premiums can be deducted as a business expense. Additionally, if the life insurance policy is used as collateral for a business loan, the
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