Unapproved schemes get tax break

Unapproved group life schemes will no longer be subject to tax on the benefits paid and are to be brought into line with approved schemes. In the Budget, the Inland Revenue has closed a hole in the regulations that saw an unapproved scheme trigger a taxable charge upon the death of the first member within the scheme. Unapproved schemes are generally set up by directors, equity partners or the self-employed. An approved scheme generally only applies to four times salary and the salary cannot be above the earnings cap, which for 2002/2003 was £97,200. Upon the death of the first mem...