§ Mr. Michael Brownasked the Chancellor of the Exchequer what would be the cost of restoring income tax relief on employer and employee medical insurance schemes.
§ Mr. Peter ReesThe cost of the provision of private medical insurance for any person by virtue of his office or employment has been assessable on him as a benefit since 1976–77. If the benefits were not taxable the cost would be about £30 million, assuming that relief continued to be given against profits for corporation tax purposes. Prior to 1976–77 such benefits were taxable only when received by directors or higher-paid employees, but the cost of returning to that position is not known.
If, in addition, tax relief were given on private medical insurance premiums and group schemes not run by employers, the total cost would increase to some £50 million.