Introduction Details of the Section
2.Subsection (2) amends section 266(3) of ITEPA which sets out a list of tax exempt benefits in respect of which the provision of a non-cash voucher does not give rise to tax liability under Chapter 4 of Part 3 of ITEPA. Subsection (2) amends this provision by adding a new sub–paragraph (g) covering health-screening assessments and medical check-ups that meet the conditions laid down in the new section 320B. The effect of this is to remove the tax charge that would otherwise arise where the employer arranges for the provision of these medicals by means of non-cash vouchers.
3.Subsection (3) amends section 267(2) of ITEPA. Section 267(2) sets out a list of tax exempt benefits in respect of which the provision of credit tokens does not give rise to tax liability. Subsection (3) amends this provision by adding a new sub-paragraph (i) covering health–screening assessments and medical check-ups that meet the conditions laid down in the new section 320B. The effect of this is to remove the tax charge that would otherwise arise where the employer arranges for the provision of these medicals by means of credit tokens.
4.Subsection (4) inserts new section 320B into ITEPA. New section 320(B)(1) exempts from tax the provision to an employee of one health-screening assessment and one medical check-up. New section 320B(2) restricts the exemption to one health-screening assessment and one medical check-up provided by an employer in a tax year. Where the employee has more than one employer at the same time, the tax exemption will only apply to one health-screening assessment and one medical check-up provided by any of them.