The Private Medical Insurance (Tax Relief) (Amendment) Regulations 1994

Explanatory Note

(This note is not part of the Regulations)

These Regulations amend the Private Medical Insurance (Tax Relief) Regulations 1989 (“the principal Regulations”).

Regulation 1 provides for citation and commencement, and regulation 2 contains a definition.

Regulation 3 amends regulation 2 of the principal Regulations so that the reference to “the Treasury Regulations” is now to the Private Medical Insurance (Disentitlement to Tax Relief and Approved Benefits) Regulations 1994 (S.I. 1994/1518).

Regulation 4 amends regulation 3 of the principal Regulations. In addition to amendments of a drafting nature, the regulation provides for an additional case in which relief under section 54(3) of the Finance Act 1989 (“the 1989 Act”) may, subject to conditions, be given at source.

Regulation 5 amends regulation 4 of the principal Regulations, and makes new provision as regards the information to be supplied in the notice of entitlement to relief at source given by an individual, and amends the provisions relating to the certificate, declaration and undertaking to be contained in the notice.

Regulations 6 and 7 amend regulations 7 and 8 respectively of the principal Regulations so as to provide that the claimant shall provide statements giving information about contracts of private medical insurance at the time when an interim claim or an annual claim is made. Regulation 7 also makes an amendment to regulation 8 of the principal Regulations relating to the requirements to be included in an annual return.

Regulation 8 confines the operation of regulation 9 of the principal Regulations to 1993-94 and earlier years of assessment.

Regulation 9 inserts a new regulation 9A into the principal Regulations. The new regulation, which will apply in 1994-95 and later years of assessment, provides for a certificate to be given by certain insurers at the request of an individual who has obtained relief otherwise than by means of relief at source on payments of premium made by him in a year, and specifies the contents of such a certificate.

Regulation 10 amends the period specified in regulation 10(2) for which notices of entitlement kept by insurers are to be preserved.

Regulation 11 amends regulation 12 of the principal Regulations, which specifies the circumstances in which the Board may approve a person as a qualifying insurer under section 55 of the 1989 Act. The amendments take account of the changes to the law relating to friendly societies made by the Friendly Societies Act 1992, and to the law relating to the authorisation of insurers within the European Economic Area made by Council Directive 92/49/EEC of 18th June 1992 (OJ No. L 228, 11.8.92, p.1). The regulation also provides that trade unions and employers' associations may be approved as qualifying insurers.

Regulation 12 revokes regulations 15 to 17 of the principal Regulations. Those regulations had become obsolete as a result of amendments made to the 1989 Act by Schedule 10 to the Finance Act 1994.

Regulation 13 adds a new regulation 18 to the principal Regulations which applies where it is discovered, on or after 1st July 1994, that the certification of a contract given before that date should be revoked with effect before that date pursuant to section 56(2) of the 1989 Act. The regulation provides for the Commissioners of Inland Revenue to give notice of the revocation and for a right of appeal by the person to whom the notice is given.