The Private Medical Insurance (Disentitlement to Tax Relief and Approved Benefits) Regulations 1989

Explanatory Note

(This note is not part of the Regulations)

These Regulations are in three distinct parts. Part I contains introductory provisions which are common to Parts II and III. Part II is made under powers contained in section 54(7) and (8) of the Finance Act 1989 (“the 1989 Act”) and provides that in certain circumstances an individual making a premium payment under a contract of private medical insurance is to have his entitlement to tax relief on that payment removed, what those circumstances are, for the circumstances in which tax for which relief has been given at source may be recovered from the person to whom the payment was made and for the adaptation of section 30 of the Taxes Management Act 1970 in order to secure that recovery by way of assessment.

Part III is made under powers contained in section 56(3) of the 1989 Act and specifies the approved benefits which may be provided by contracts of private medical insurance which are certified as eligible contracts for the purposes of tax relief.

Regulation 1 provides for citation and commencement.

Regulation 2 contains definitions.

Regulation 3 provides that a person making a premium payment under a contract of private medical insurance will have his entitlement to tax relief for that payment removed if the contract ceases to be an eligible contract for the purposes of the relief or if the payment is refunded to him.

Regulation 4 provides for the recovery of that tax relief from the person to whom the premium payment was made in circumstances where that person has recovered the relief from the Commissioners of Inland Revenue and not reimbursed them following removal of entitlement to relief for that payment.

Regulation 5 adapts the provisions of section 30 of the Taxes Management Act 1970 providing for the recovery of overpayments of tax by way of assessment under Case VI of Schedule D so that they apply in the same way to the recovery of tax relief under regulation 4.

Regulation 6 and the Schedule specify the treatments, medical services and other matters, the costs of which may be indemnified under contracts of private medical insurance which are certified as eligible contracts for the purposes of the relief and the circumstances in which those treatments, medical services and other matters may be given.

Regulation 7 specifies the rules for cash benefits provided under such contracts and regulation 8 specifies the other rights which may be conferred by such contracts.