How is private health insurance taxed?

Frequently Asked Questions

verisign seal
or call us on 0208 432 7333
Our Insurers - Aviva, LV, Friends Life, PruProtect, Ageas Bright Grey, Scottish Provident, Legal & General, Exeter Family Friendly

How is private health insurance taxed?

+6 votes
I have had private health insurance in  the past through work and I am now considering taking out my own personal plan, I know I had to pay some form of tax on my company health insurance will this be the same on a personal plan.
asked by sezzerll (210 points)
Compare Top 10 UK
Takes approx. 60 seconds
Need help? 
Call us on 
Level of Cover
Date of Birth
Correct format - dd/mm/yyyy
verisign seal
verisign seal
1 Answer
+2 votes
Best Answer

The tax on private medical insurance depends on whether you have taken out a personal health insurance plan or you are joining your orgnisations group health insurance scheme.

Personal Health Insurance Taxation

When discussing the taxation of a personal health insurance plan where you are paying premiums from your net earnings there is no further tax to be paid as the income from which you are paying the premiums has already been taxed. The only tax payable on the private medical insurance plan is insurance premium tax (IPT) which is already incorporated in the pricing of the premiums.

Company Health Insurance Taxation

Group health insurance can be taxed very differently if the premium for the medical insurance is paid by your employer. Should the premium be paid by your employer it can be paid from pre-taxed earnings which means as private medical insurance is considered a P11d Benefit the employee can then be liable to a \'Benefit in Kind\' tax , with a 'benefit in kind' taxation your tax code is altered reducing your personal allowance to take account of the additional tax liability.

This information does not constitute financial or other professional advice. You should consult your professional adviser or contact us directly on 020 8432 7333 should you require financial advice. It is important to ensure any insurance policy you take out is suitable for your needs.
answered by Tom Conner    (7,100 points)
edited by Andrew-Drewberry
Compare Top 10 UK Health Insurers
Takes approx. 60 seconds
Need help? 
Call us on 
Sunday TimesFinancial TimesDaily Mail
Related questions
Our Principles
1. You Come First
We are a client focused business who always aim to put you first.
2. We are Experts
To provide you with the best advice, we need to know our stuff!
3. We are Human
We are real people with feelings who are here to help you.
4. We are truly Independent
We believe the best advice has to be completely unbiased.
5. We are here to Educate
We are here to educate you so you can make informed decisions.
Contact Us

We would love to hear from you, whether you are enquiring about our services, a career, or a business partnership.

Email us at

London Head Office
Corporate & Wealth Advice

020 8432 7333

Brighton Office
Protection Advice

01273 646 484

Leicester Office
Health Advice

020 8432 7333

Drewberry Insurance is rated 4.93 stars by based on 215 merchant reviews

© Copyright 2016  |  All Rights Reserved
Published by Andrew Jenkinson
Financial Services Authority
Powered by Q2A