Category: Group risk fundamentals · Reviewed by Simon Temme, Account Executive · Last reviewed 2026-06-10
A registered group life policy (RGLP) is a group life assurance scheme registered with HMRC as a registered pension scheme under Part 4 of the Finance Act 2004. Lump sum benefits payable on the death in service of a member count against the deceased’s lump sum and death benefit allowance, but the scheme benefits from the favourable corporation tax and inheritance tax treatment of registered pension schemes.
Category: Group risk fundamentals Also known as: RGLP, registered group life scheme Statutory basis: Finance Act 2004, Part 4 Related concepts: Excepted group life policy, Group life trust, Master trust group life
An RGLP is a death-only registered pension scheme established by a discretionary trust deed and rules. The trustees hold the life assurance policy and pay the lump sum out to nominated beneficiaries on death in service. The premium is paid by the employer and is a normal trading expense; the benefit is paid out as a defined benefit lump sum and is generally free of income tax provided the deceased’s lump sum and death benefit allowance has not been exhausted.
Registration is sought from HMRC under section 153 of the Finance Act 2004. Schemes must comply with the registered pension scheme requirements including reporting via Pension Schemes Online. Death benefit lump sums are tested against the lump sum and death benefit allowance (LSDBA), set at £1,073,100 from 6 April 2024 (Finance Act 2024). Lump sums paid in excess of available LSDBA are subject to income tax on the recipient at marginal rates.
The scheme covers all eligible employees for a lump sum on death in service. The benefit may also include a dependants’ pension. Because of the lump sum allowance, RGLPs are typically appropriate where the maximum lump sum cover does not approach the LSDBA limit. For higher earners, an excepted group life policy is often preferred.
A 30-employee business sets up a registered group life scheme paying four times salary. An employee earning £80,000 dies in service; the lump sum of £320,000 is paid to the deceased’s nominated beneficiary. The amount sits comfortably below the £1,073,100 LSDBA and is paid free of income tax.
This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-10. Next review: 2026-12-10.
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