SE21760 - Benefits: medical expenses, treatment and medical insurance: general

An employer wishing to pay an employee's medical expenses may do so in a number of ways. The table at SE01550 shows the tax treatment which applies in each circumstance.

Liability under Section 154 ICTA 1988 arises on directors or employees within Part V Chapter II ICTA 1988 where by reason of their employment:

• the employer arranges to meet their hospital and other medical expenses or provide treatment directly. The expense may be met out of the proceeds of an insurance policy payable to the employer ( SE21761) or
• the employer pays the premiums under a group insurance policy covering employees, and sometimes their families ( SE21762).

No liability arises in respect of periodic medical check-ups ( SE21765).

As regards the cost of medical treatment outside the United Kingdom see SE21766.

An Inspector should deal with any disputes over benefits relating to medical treatment or insurance.