Businesses take out key person insurance (‘KPI’) for a variety of reasons and it is common commercial practice, so one might think that the tax treatment would follow a well-trodden path. This article explores why that may, or may not, be so.
The fact is that there are no hard and fast rules as to whether premiums paid for KPI are allowable for tax purposes or whether, in the event that the policy benefits are received, they are taxable or not.
In the February issue of ‘Business Tax Insider’, Ken Moody takes us through the rules, the guidance and case law of Key Person Insurance.
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>> Key Person Insurance – The ‘Ins’ And ‘Outs’
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