HM Revenue and Customs have decided to keep medical services exempt from value added tax, and as a result life insurers will save £100million. The European Court of Justice’s has indicated these products should be taxable, however the HM Revenue and Customs has decided that they will not make any changes.
Other services which will be exempt from value added tax are health screening under private medical insurance and medical services from an income protection policy where the aim is to assist the policyholder to return to normal life.
Our view
Thank you ‘Mr Tax Man’, although we suggest this is Government lead, to ensure no further burden on the NHS.