Part 6 U.K. Exempt income

Chapter 8 U.K. Other annual payments

Health and employment insurance payments U.K.

741 Aggregation of policies where employment ends for health reasons U.K.

(1) This section applies if—

(a) payments are made to or in respect of a person who has left employment because of the occurrence of something insured against by an employment policy as a health risk,

(b) the payments are made under another policy (“the replacement policy”) which was entered into under, or in accordance with, provisions contained in the employment policy,

(c) the employment policy has ceased to apply to the person, and

(d) the rights in accordance with which the payments are made under the replacement policy superseded rights under the employment policy with effect from the time when that policy ceased to apply to the person.

(2) The employment policy and the replacement policy are to be treated as a single policy for the purposes of sections 735 to 738, this section and section 743.

(3) In this section—

• “employment” includes an office, and “employees” and “employer” are to be read accordingly, and

• “employment policy” means a policy entered into wholly or partly for the benefit of the employees of an employer against a health risk.