Medical insurance for retirees, is it a benefit in kind?

Despite our post-Budget commentary advising to the contrary, we have now come across an interpretation by HMRC relating to a change in approach to benefit-in-kind tax for retirees in receipt of a company-paid medical benefit. Whilst it is not a change for everybody, it seems to affect anyone who retired before 6 April 1998.

Benefit-in-kind tax for retirees was only introduced very recently but it will no doubt be a welcome change for those benefiting from the removal of this tax burden.

This whole area is one where it often seems that nothing is ever totally certain – indeed HMRC’s explanation for the change in approach seems short on logic. Consequently, we strongly suggest that individuals and / or companies should seek a ruling from their local tax office before ceasing to declare the benefit, as there is a danger of some variance in interpretation.

THE INFORMATION CONTAINED IN THIS DOCUMENT IS OF A GENERAL NATURE ONLY AND SHOULD NOT BE RELIED UPON AS ADVICE IN ANY SPECIFIC SITUATION

For further information, please telephone your usual contact at Buck Consultants (Healthcare):

Tel: +44 (0)118 955 7700
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Email: healthcare@buckconsultants.com
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