Medically covered

I have a client who retired in 1990 from the banking profession. His previous employer continues to pay for medical cover which is provided by a major insurance company.

I seem to recall that this measure was introduced during the 2006/07 tax year and that he was taxed on the cost of the cover as a benefit in kind for that year.

What I am trying to establish is whether an amendment was subsequently introduced so that employees who retired prior to 1998 were not taxed on the benefit. If that is the case from which year does this apply?

I do not seem to have been able to find much information on this subject so any clarification that Taxation readers can supply would be gratefully received.

Query 17 483 – Langden

Reply from Doc

Langden is correct that the benefit is exempt for an employee whose...