HC Deb 21 October 2002 vol 391 c84W
Tim Loughton

To ask the Chancellor of the Exchequer how much revenue was raised from taxation of private medical insurance cover offered by employers as a benefit in kind in each of the last five years. [75695]

Ruth Kelly

Information on the total income tax liability of employees and Class 1A National Insurance liability of employers on the benefit of private medical and dental treatment or insurance provided by employers is shown in the table.

Year Amount £million
2001–021 390
2000–011,2 390
1999–2000 270
1998–99 260
1997–98 250

Notes:

1 Projected.

2 From 6 April 2000, Class 1A NICs liability was extended to cover medical and dental treatment or insurance provided by employers.

Tim Loughton

To ask the Chancellor of the Exchequer what assessment his Department has made of the cost of re-introducing tax relief for pensioners paying for their own private medical insurance cover. [75696]

Ruth Kelly

The abolition of tax relief on premiums for private medical insurance for the over-60s was estimated to yield £135 million for 1999–2000 as shown in the July 1997 Financial Statement and Budget Report. A reliable updated estimate could only be produced at a disproportionate cost.

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