Overview

This bill proposes tax relief on medical insurance premiums for individuals aged 65 and over residing in the UK. The relief is subject to specific conditions regarding the type of insurance contract and the insurer's eligibility.

Description

Tax Relief

The bill provides tax relief on medical insurance premiums paid by individuals aged 65 or over, living in the UK. Relief is only available if the payment is not funded by another person, and no other tax relief is claimed for the same payment. The contract must insure a UK resident aged 65 or over, or a married couple where at least one is aged 65 or over and both reside in the UK. Payments will be deducted from the payer's income tax or reclaimed from the government. The Treasury may issue regulations that may adjust or remove this relief under certain circumstances.

Eligible Contracts

Only specific medical insurance contracts qualify. Insurers must be approved by Her Majesty's Revenue and Customs (HMRC). Contracts must be for one year, not connected to other policies, offer only approved benefits (defined by the Treasury), and either be HMRC-certified, conform to a standard HMRC-approved form, or be a variation of an approved form with certified, compatible additions.

Certification

HMRC certifies eligible contracts based on criteria such as: coverage for treatments/services specified by the Treasury, no benefits beyond those specified by the Treasury, reasonable premiums, and any other requirements specified by the Treasury. The certification can be revoked if conditions are no longer met. Appeals against HMRC decisions regarding certification are available to insurers or those entitled to relief.

Supplementary Provisions

The bill allows HMRC to issue regulations to govern the administration of the relief, including: claim procedures, insurer certification of payments, document inspection requirements, information requests from insurers, insurer approval processes, appeals, and general administrative provisions.

Government Spending

The bill is expected to reduce government revenue due to tax relief on medical insurance premiums. The exact financial impact is not specified in the provided text.

Groups Affected

• Pensioners (aged 65 and over): May benefit from reduced tax burdens through tax relief on medical insurance premiums.
• Medical Insurance Insurers: Will need to comply with the bill's requirements regarding contract eligibility, certification, and information provision.
• HMRC: Responsible for administering the tax relief, certifying contracts and insurers, and handling appeals.
• Treasury: Has the power to set regulations defining eligible treatments, benefits, and conditions for tax relief.

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