The Healthcare Focus Group of the British Insurance Brokers’ Association (BIBA) is to set up a working group to tackle the position of personal tax around Private Medical Insurance (PMI).
The decision was made at the recent committee meeting of the Healthcare Focus group to review tax issues affecting PMI. Issues to be reviewed by the group include tax concessions for the over 60s and how the removal of concessions have impacted sales of PMI. Once the group has completed its review, they will raise the issues with relevant industry and political stakeholders.
Peter Staddon, BIBA’s Head of Technical Services, said: “The last government withdrew the over 60’s tax concession and we saw a dramatic reduction in the sales of PMI cover. With the increase in insurance premium tax (IPT) due in a little over 10 weeks this could again have an affect on the purchasing of cover. As a committee we are keen to investigate if tax concessions are a possible solution to encourage future sales.”
Stuart Scullion, Marketing Director of Private Health Partnership, who will lead the sub Group, said: “We will be looking at both the individual and also the SME tax implications”. Scullion who has more than 30 years in the industry continued: “The Insurance sector provides great support which relieves some of the pressures in the NHS. There has never been a better time to express to Treasury the important benefits of health insurance protection to the customer that insurance brokers can bring.”
Source : BIBA Press Release
