WOL policy for company director's personal benefit

Hi everyone,

Background

A whole of life assurance policy is in place (we didn't set this up!):
• Policy owner: Mrs S (employee of the company)
• Life assured: Mr S (husband & director/shareholder of the company)
• The policy is personally owned (i.e. not held by the company or in trust).
• The premiums (c£20,000 p.a.) are paid by the company.

It’s my understanding that under employment income legislation, where an employer meets a personal expense, or provides a benefit to an employee or their family/household, this falls under the P11D regime and the premium is treated as a taxable benefit in kind (BIK) unless a specific exemption applies (e.g. relevant life plan or company owns the policy – neither of which apply in this case). Is this correct?

On whom would the benefit be assessable for tax purposes?

--> Mrs S is an employee and the policy holder, who will benefit from the payout proceeds when Mr S dies. The company is providing an ultimate benefit to Mrs S, therefore could the P11D sit with her?
--> The policy is on Mr S’s life – he is the key individual being insured, why the arrangement exists – the commercial purpose being to benefit his family by virtue of his role as shareholder/director. Would HMRC regard the benefit as being provided in connection with Mr S’s employment and therefore be assessable on him?

Any thoughts or guidance greatly appreciated!