Section 325A Health and employment insurance payments
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Amendments
Section 325A inserted by Income Tax (Trading and Other Income) Act 2005 section 882(1) and Schedule 1 para 592 for 2005-06 and later tax years (for income tax purposes), and for accounting periods ending after 5 April 2005 (for corporation tax purposes).
(1) No liability to income tax in respect of employment income arises on any payment if or to the extent that—
(a) were the payment an annual payment falling within Chapter 7 of Part 5 of ITTOIA 2005, it would be exempt from income tax under section 735 of that Act (health and employment insurance payments), and
(b) it meets conditions A and B.
(2) Condition A is that the payments are made—
(a) to a person (“the employee”) who made payments or contributions in respect of premiums under an insurance policy which another person took out wholly or partly for the employee’s benefit, or
(b) to the employee’s [spouse or civil partner]1.
Amendments
1 Substituted for the words “husband or wife” by S.I. 2005/3229 regulation 145 from 5 December 2005.
(3) Condition B is that the payments are attributable on a just and reasonable basis to the payments or contributions in respect of premiums.
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