Government Taxation & Policies

For individual plans the income is currently (May 2004) paid free of income tax. The premiums paid do not qualify for tax relief.

Where a close limited company takes out cover for an employee the income paid to the company is liable for income tax and national insurance. The premiums paid by the company normally qualify for corporation tax relief and are taxed as a benefit in kind for the employee.

Tax law is subject to change and you should consult professional advice to clarify your position.