Private medical for family

[tha1_n]

Hi all
I had a query regarding a private medical benefit.

The company is owned by husband and wife who are both on the payroll. Husband is a higher rate taxpayer and wife is a basic rate payer.

He is provided with private medical benefit (i.e. the policy is in his name) and his wife is also covered in the policy.

My first thought was that he would be taxable on all of the private medical as the policy is under his name however my colleague wont accept this as her argument is that if this is the case, why doesn't everyone put the policy under the lower paid spouse in order to save tax and she wont accept it any other way unless there is something in black and white saying otherwise.

There could be an argument for the benefit to be joint as it's a husband and wife owned company and I suspect a joint policy would be cheaper than two separate policies but the policy is under the husbands name...

Does anyone have any thoughts? and reference to the legislation on this?

Thanks

[bd6759]

The benefit could be apportioned because they are both liable to tax on it - in each case the benefit has been provided to a member of their family or household.
See https://www.gov.uk/hmrc-internal-manual ... l/eim20506