§ Ms PrimaroloTo ask the Chancellor of the Exchequer if Treasury rules permit loss of revenue from business tax relief on the expense on providing private health care for employees to exceed the income derived from the tax due on the private health care given as a benefit to those same employees.
§ Mr. Dorrell[holding answer 3 March 1994]: If an employer incurs expenditure on providing health care for employees, the expenses incurred will qualify as a deduction when calculating the trading profits of the business if the expense is incurred wholly and exclusively for business purposes. A director or employee earning at the rate of £8,500 or more a year is liable to tax on the expense incurred in connection with the provision of the benefit. The reduction in tax for the employer and the additional tax charged on the employees depend on their individual circumstances.
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