C1Part 4Employment income: exemptions
Chapter 11Miscellaneous exemptions
F1Recommended medical treatment
S. 320C and cross-heading inserted (1.1.2015) by Finance Act 2014 (c. 26), s. 12(2)(4); S.I. 2014/3226, art. 2
320CRecommended medical treatment
1
No liability to income tax arises in respect of—
a
the provision to an employee of recommended medical treatment, or
b
the payment or reimbursement, to or in respect of an employee, of the cost of such treatment,
if that provision, payment or reimbursement is not pursuant to relevant salary sacrifice arrangements or relevant flexible remuneration arrangements.
2
But subsection (1) does not apply in a tax year if, and to the extent that, the value of the exemption in that year exceeds £500.
3
Medical treatment is “recommended” if it is provided to the employee in accordance with a recommendation which—
a
is made to the employee as part of occupational health services provided to the employee by a service provided—
i
under section 2 of the Employment and Training Act 1973 (arrangements for the purpose of assisting persons to retain employment etc), or
ii
by, or in accordance with arrangements made by, the employer,
b
is made for the purpose of assisting the employee to return to work after a period of absence due to injury or ill health, and
c
meets any other requirements specified in regulations made by the Treasury.
4
Regulations under subsection (3)(c) may, in particular, specify that the recommendation must be one given after the employee has been assessed as unfit for work—
a
for at least the specified number of consecutive days, and
b
in the specified manner by a person of a specified description.
5
The Treasury may by order amend subsection (3)(a) so as to add, amend or remove a reference to any enactment.
6
“The value of the exemption”, in a tax year, is an amount equal to the sum of—
a
all earnings within section 62 (earnings), and
b
all earnings which are treated as such under the benefits code,
in respect of which subsection (1) would prevent liability to income tax from arising in the tax year disregarding subsection (2).
7
In this section—
“medical treatment” means all procedures for diagnosing or treating any physical or mental illness, infirmity or defect;
“relevant salary sacrifice arrangements” means arrangements (whenever made, whether before or after the employment began) under which the employee gives up the right to receive an amount of general earnings or specific employment income in return for the provision of recommended medical treatment or the payment or reimbursement of the cost of such treatment;
“relevant flexible remuneration arrangements” means arrangements (whenever made, whether before or after the employment began) under which the employee and employer agree that the employee is to be provided with recommended medical treatment or the cost of such treatment is to be paid or reimbursed, rather than the employee receiving some other description of employment income;
“specified” means specified in regulations under subsection (3)(c).
Pt. 4 modified (10.6.2021) by Finance Act 2021 (c. 26), s. 26(3)