AMII disappointed at lack of tax breaks for private medical insurance in the Budget
Tax relief would encourage the uptake of health cover according to the association
The Association of Medical Insurers and Intermediaries (AMII) calls for further private medical insurance (PMI) tax relief following the UK government’s budget on 15 March.
The Chancellor promised £400 million of funding to increase the availability of mental health and musculoskeletal resources and expand the Individual Placement and Support scheme.
However, no tax reliefs were announced, despite them being called for by the Confederation of British Industry (CBI) and backed by AMII.
Plans to increase Corporation Tax from 18 to 25 per cent were also announced.
AMII believes that tax relief would encourage the uptake of health cover, support a healthier population and incentivise employers to look after employee health, helping more people stay in work.
David Middleton, Executive Chairman of AMII, said: “It is disappointing that the Chancellor has simultaneously raised Corporation Tax while refraining from introducing tax relief for the PMI industry.
“At a time when the NHS is under unrelenting pressure, doctors and nurses are striking over pay and conditions and the backlog following the pandemic shows no signs of reducing, the government has missed the chance to take positive steps to encourage growth in the PMI market.”
He added: “While we welcome the £400 million of funding for mental health and musculoskeletal support, I would urge the Chancellor to go further and review the announcements made in the Budget to offer some much-needed respite for the private health and wellbeing sector.”