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MyVirtualCPA
MyVirtualCPA, Accountant
Category: Tax
Satisfied Customers: 16580
Experience:  CPA with Master's degree in accounting
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I have had health insurance through company scheme since retired

Resolved Question:

I have had health insurance through company scheme since retired in 1997. Most of the cost was paid by my former employer.
Due to my retirement date, I had no tax liability for the payment made by the company.
The company started to demand a contribution some years ago due to increasing costs and this I paid.
In the current tax year, I accepted an offer to cease taking the benefit and took a cash settlement. Tax has been deducted.
As benefit was not taxable, it seems logical for the cash settlement to be non-taxable as I have to use the amount involved to provide for my own medical costs in future.
Will HMRC accept my contention?
Submitted: 2 years ago.
Category: Tax
Expert:  MyVirtualCPA replied 2 years ago.
Thank you for your question. My name is ***** ***** I will be happy to help you
Unfortunately this is a cash benefit, and your contention will not be agreed with -- only the benefit of receiving the health insurance is not taxable when you receive cash then this is a cash benefit and is taxable, unfortunately
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