May 23, 2022

Volume XII, Number 143

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May 20, 2022

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Budgeting for UK Employee Healthcare Costs

We anticipate that the significant increase in insurance premium tax that was announced in the 2016 Autumn Statement will encourage many more employers to explore corporate healthcare trusts. IPT will increase from 10% to 12% from June 2017, having been as low as 6% just over a year ago. This will apply to employee health insurance policies as it does to all other UK insurance products. Corporate healthcare trusts are a way of providing healthcare benefits to employees other than through insurance. Instead of paying premiums to an insurer, the employer pays cash into a trust for the benefit of its employees. The trustees then pay for medical treatment or reimburse employees for medical expenses incurred. As insurance based arrangements become more costly, the alternative of corporate healthcare trusts becomes increasingly attractive and will start to feature more and more on the FD’s wish-list!

© Copyright 2022 Squire Patton Boggs (US) LLPNational Law Review, Volume VI, Number 328
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About this Author

Matthew Giles Pension Attorney Squire Patton Boggs Birmingham, UK
Partner

Matthew Giles leads our team of Pensions lawyers in Birmingham. Our wider Pensions team was named Human Resources (Specialism) Firm of the Year 2018 at The Legal 500 UK Awards.

He is a former finalist at the British Legal Awards. He is regarded as a "Leading Individual" in Pensions by The Legal 500 UKChambers UK reports that he has a “practical, no-nonsense approach.”

Matthew specialises in advising on defined benefit pension plans, focussing on a range of deficit management strategies. He helps trustees and sponsors on all aspects of pension plan...

44 121-222-3296
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