Provide for tax relief on medical insurance premiums for people above a
certain age; and for connected purposes.
Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and
consent of the Lords Spiritual and Temporal, and Commons, in this present
Parliament assembled, and by the authority of the same, as follows:—
(1) This section applies where—
on or after 6 April 2012 an individual makes a payment in respect of a
premium under a contract of private medical insurance (whenever
the contract meets the requirement in subsection (2) as to the person or
(c) at the time the payment is made the contract is an eligible contract,
the individual making the payment does not make it out of resources
provided by another person for the purpose of enabling it to be made,
the individual making the payment is not entitled to claim any relief or
deduction in respect of it under any other provision of the Tax Acts.
(2) The requirement mentioned in subsection (1)(b) is that the contract insures—
an individual who at the time the payment is made is aged 65 or over
and resident in the United Kingdom,
individuals each of whom at that time is aged 65 or over and resident
in the United Kingdom, or
two individuals who are married to each other at that time, at least one
of whom is aged 65 or over at that time, and each of whom is resident
in the United Kingdom at that time.
If the payment is made by an individual who at the time it is made is resident
in the United Kingdom (whether or not he is the individual or one of the
individuals insured by the contract) it shall be deducted from or set off against
his income for the year of assessment in which it is made; but relief under this
Medical Insurance (Pensioner Tax Relief) BillPage 2
subsection shall be given only on a claim made for the purpose, except where
subsections (4) to (6) apply.
In such cases and subject to such conditions as the Commissioners of Her
Majesty’s Revenue and Customs (“the Commissioners”) may specify in
regulations, relief under subsection (3) shall be given in accordance with
subsections (5) and (6).
An individual who is entitled to such relief in respect of a payment may deduct
and retain out of it an amount equal to income tax on it at the basic rate for the
year of assessment in which it is made.
(6) The person to whom the payment is made—
shall accept the amount paid after deduction in discharge of the
individual’s liability to the same extent as if the deduction had not been
may, on making a claim, recover from the Commissioners an amount
equal to the amount deducted.
The Treasury may make regulations providing that in circumstances
prescribed in the regulations—
an individual who has made a payment in respect of a premium under
a contract of private medical insurance shall cease to be and be treated
as not having been entitled to relief under subsection (3); and
he or the person to whom the payment was made (depending on the
terms of the regulations) shall account to the Commissioners for tax
from which relief has been given on the basis that the individual was so
Regulations under subsection (7) may include provision adapting or
modifying the effect of any enactment relating to income tax in order to secure
the performance of any obligation imposed under paragraph (b) of that
In this section references to a premium, in relation to a contract of insurance,
are to any amount payable under the contract to the insurer.
This section has effect to determine whether a contract is at a particular time
(the relevant time) an eligible contract for the purposes of section 1.
(2) A contract is an eligible contract at the relevant time if—
it was entered into by an insurer who at the time it was entered into was
a qualifying insurer and was approved by the Commissioners for the
purposes of this section,
the period of insurance under the contract does not exceed one year
(commencing with the date it was entered into),
the contract is not connected with any other contract at the relevant
time and has not been connected with any other contract at any time
since it was entered into,
no benefit has been provided by virtue of the contract other than an
approved benefit, and
(e) the contract meets one or more of the three conditions set out below.
Medical Insurance (Pensioner Tax Relief) BillPage 3
The first condition is that the contract is certified by the Commissioners under
section 3 at the relevant time.
The second condition is that, at the time the contract was entered into, it
conformed with a standard form certified by the Commissioners as a standard
form of eligible contract.
The third condition is that, at the time the contract was entered into, it
conformed with a form varying from a standard form so certified in no other
respect than by making additions—
which were (at the time the contract was entered into) certified by the
Commissioners as compatible with an eligible contract when made to
that standard form, and
which (at that time) satisfied any conditions subject to which the
additions were so certified.
Where a contract is varied, and the relevant time falls after the time the
variation takes effect, subsections (1) to (5) shall have effect as if “entered into”
read “varied” in each place where it occurs in subsections (4) and (5).
For the purposes of this section a contract is connected with another contract at
any time if—
(a) they are simultaneously in force at that time,
either of them was entered into with reference to the other, or with a
view to enabling the other to be entered into on particular terms, or
with a view to facilitating the other being entered into on particular
the terms on which either of them was entered into would have been
significantly less favourable to the insured if the other had not been
(8) For the purposes of this section each of the following is a qualifying insurer—
an insurer lawfully carrying on in the United Kingdom business
relating to insurance;
an insurer not carrying on business in the United Kingdom but carrying
on business in another member State and being either a national of a
member State or a company or partnership formed under the law of
any part of the United Kingdom or another member State and having
its registered office, central administration or principal place of
business in a member State.
For the purposes of this section a benefit is an approved benefit if it is provided
in pursuance of a right of a description mentioned in section 3(3)(a).
The Commissioners shall certify a contract under this section if it satisfies the
conditions set out in subsection (3); and the certification shall be expressed to
take effect from the time the conditions are satisfied, and shall take effect
The Commissioners shall revoke a certification of a contract under this section
if it comes to their notice that the contract has ceased to satisfy the conditions
set out in subsection (3); and the revocation shall be expressed to take effect
from the time the conditions ceased to be satisfied, and shall take effect
Medical Insurance (Pensioner Tax Relief) BillPage 4
(3) The conditions referred to above are that—
the contract either provides indemnity in respect of all or any of the
costs of all or any of the treatments, medical services and other matters
for the time being specified in regulations made by the Treasury, or in
addition to providing indemnity of that description provides cash
benefits falling within rules for the time being so specified,
the contract does not confer any right other than such a right as is
mentioned in paragraph (a) or is for the time being specified in
regulations made by the Treasury,
the premium under the contract is in the Commissioners’ opinion
the contract satisfies such other requirements as are for the time being
specified in regulations made by the Treasury.
The certification of a contract by the Commissioners under this section shall
cease to have effect if the contract is varied; but this is without prejudice to the
application of the preceding provisions of this section to the contract as varied.
Where the Commissioners refuse to certify a contract under this section, or
they revoke a certification, an appeal may be made to the relevant Tribunal
(a) the insurer, or
any person who (if the policy were certified) would be entitled to relief
under section 1.
Where a contract is certified under this section, or a certification is revoked or
otherwise ceases to have effect, any adjustments resulting from the certification
or from its revocation or ceasing to have effect shall be made.
Subsection (6) applies where a certification or revocation takes place on appeal
as it applies in the case of any other certification or revocation.
In this section the reference to a premium, in relation to a contract of insurance,
is to any amount payable under the contract to the insurer.
(1) The Commissioners may by regulations—
provide that a claim under section 1(3) or 1(6)(b) shall be made in such
form and manner, shall be made at such time, and shall be
accompanied by such documents, as may be prescribed;
make provision, in relation to payments in respect of which a person is
entitled to relief under section 1, for the giving by insurers in such
circumstances as may be prescribed of certificates of payment in such
form as may be prescribed to such persons as may be prescribed;
provide that a person who provides (or has at any time provided)
insurance under contracts of private medical insurance shall comply
with any notice which is served on him by the Commissioners and
which requires him within a prescribed period to make available for the
Commissioners inspection documents (of a prescribed kind) relating to
provide that persons of such a description as may be prescribed shall,
within a prescribed period of being required to do so by the
Commissioners, furnish to the Commissioners information (of a
prescribed kind) about contracts of private medical insurance;
Medical Insurance (Pensioner Tax Relief) BillPage 5
make provision with respect to the approval of insurers for the
purposes of section 2 and the withdrawal of approval for the purposes
of that section;
make provision for and with respect to appeals against decisions of the
Commissioners with respect to the giving or withdrawal of approval of
insurers for the purposes of section 2;
make provision with respect to the certification by the Commissioners
of standard forms of eligible contract and variations from standard
forms of eligible contract certified by them;
make provision for and with respect to appeals against decisions of the
Commissioners with respect to the certification of standard forms of
eligible contract or variations from standard forms of eligible contract
certified by them;
provide that certification, or the revocation of a certification, under
section 3 shall be carried out in such form and manner as may be
make provision with respect to appeals against decisions of the
Commissioners with respect to certification or the revocation of
certification under section 3;
make provision generally as to administration in connection with
sections 1 to 3.
(2) In subsection (1) above—
“eligible contract” has the meaning given by section 2, and
“prescribed” means prescribed by or, in relation to form, under the
(1) This Act may be cited as the Medical Insurance (Pensioner Tax Relief) Act 2011.
(2) This Act comes into force on the day on which it is passed.
(3) This Act extends to England and Wales, Scotland and Northern Ireland.