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Coronavirus life assurance schemes

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Lump sum payments from the new NHS death-in-service life insurance schemes have been made exempt from income tax. The Coronavirus Life Assurance Scheme (English and Welsh Schemes) (Excluded Benefits for Tax Purposes) Regulations, SI 2020/615, provide that lump sum payments of £60,000 paid pursuant to the National Health Service and Social Care Coronavirus Life Assurance Schemes for both England and Wales are exempt from the charge to tax on employer-financed benefits under ITEPA 2003 s 394. The lump sum payment is an excluded benefit under ITEPA 2003 s 393B(3)(d).The regulations come into force on 13 July 2020 and have effect for the tax year 2020/21 onwards.

Issue: 1494
Categories: News