(This archived guidance relates to HMRC discretionary
practice before the 6th April 2006. For current guidance on
Registered Pension Schemes see the Registered Pension Schemes
Manual)
(This text has been withheld because of exemptions in the
Freedom of Information Act 2000)
A policy taken out by an employer to insure against loss of
profits should an executive or director die is often called a
"Key-Man" policy. The distinguishing feature of such a policy is
that if the "key" employee dies the policy proceeds are payable to
the employer. A Key-Man policy is
not therefore a retirement benefits scheme nor are
any payments out of the policy "relevant benefits". BT1/2 will
advise in any case of difficulty.
