HL Deb 25 January 1979 vol 397 cc1735-6WA
Lord VAIZEY

asked Her Majesty's Government:

Whether they will list the loss of revenue resulting from the granting of relief for the provision of medical insurance provided by firms for 1945, 1950, 1960, 1970 and all subsequent years.

Baroness BIRK

The cost of medical insurance for employees, like expenditure on any other welfare benefit provided by an employer, is allowable for tax under the normal rules. Information on which to base a precise estimate of the cost of relief is not available, but if it is assumed that the subscriptions concerned were wholly set against profits chargeable mainly to corporation tax the loss of revenue in 1973–74 might have been of the order of £5 million, rising to perhaps £15 million in the current financial year. Information on which to base estimates for earlier years is not available.

The cost of the provision of such insurance for any person by reason of his office or employment has been assessable on him as a benefit since 1976–77. The yield from the taxation of such benefits is currently estimated at between £10 million and £15 million. Prior to 1976–77 such benefits were taxable only when received by directors or higher paid employees.