HC Deb 20 March 1989 vol 149 cc451-2W
Mr. Gordon Brown

To ask the Chancellor of the Exchequer what proportion of the £40 million tax relief estimated for 1989–90 for private medical insurance he estimates will go to those who already have private medical insurance.

Mr. Norman Lamont

[holding answer 17 March 1989]: The introduction of tax relief for private medical insurance paid by or on behalf of the elderly has no cost in 1989–90. As I explained in the Budget debate it is estimated that about 90 per cent. of the cost in 1990–91 will be attributable to those who already have private medical insurance. Over later years this proportion is expected to decline, though the figure will depend upon take-up and marketing by insurers.

Mr. Gordon Brown

To ask the Chancellor of the Exchequer what proportion of the £40 million tax relief he has set aside for private medical insurance he estimates will go to(a) BUPA and (b) Private Patients Plan.

Mr. Norman Lamont

[holding answer 17 March 1989]: The benefit of tax relief on qualifying private medical insurance premiums will go to the person paying the premium and not to the providers of private medical insurance.

Mr. Gordon Brown

To ask the Chancellor of the Exchequer (1) what is his estimate of the cost of private medical insurance tax relief for 1991–92 and 1992–93;

(2) what is his best estimate of the proportion of pensioners who will take up private medical insurance tax relief in each of the five years from 1989.

Mr. Norman Lamont

[holding answer 17 March 1989]: Tax relief on private medical insurance premiums paid by the elderly will not be available until 1990–91. It is estimated that about 5 per cent. of the 12 million people aged 60 and above will be covered by private medical insurance in 1990–91. The number of people covered and the cost of the relief in future years will depend. among other things, on the extent to which medical insurance for the over-60s is promoted and taken up.

Mr. Gordon Brown

To ask the Chancellor of the Exchequer if a firm will be eligible for tax relief if they pay the private medical insurance tax relief of ex-employees who are aged over 60 years.

Mr. Norman Lamont

[holding answer 17 March 1989]: A firm will normally be entitled to a deduction for these costs under existing law in computing the taxable profits of its trade. But relief would not also be due under the new relief-at-source scheme to be introduced in April 1990.