If it is just a life assurance policy, then it is either posted to the directors loan account, or, is a benefit, which will be subject to directors personal tax, and would go in to an expense account, somewhere in the 70xx range, possibly 7002 directors renumerations.
If it is a life insurance policy to protect the company against loss of key personel then it could be an expense, and put in the 82xx range, possibly 8204, which is just a standard insurance.
Just to confirm, it is the company and not the directors family that is the named recipient on the insurance policy isn't it?
If not you may hit problems with this as the insurance that you actually needed was Key Person Insurance (which will also cover for injury forcing prolonged absence) rather than life insurance.
At the end of the day the tax treatment is all dependant upon the final recipient of any payment on the policy.
Kind regards,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
