Inheritance Tax Manual

IHTM42991 - Employee benefit trusts: associated issues: health care trusts

바카라 사이트˜All or most바카라 사이트™ test

Generally, Health Care Trusts are set up to provide the company바카라 사이트™s employees with insurance against the cost of medical expenses and a condition must be satisfied before eligibility to benefit can be established. The member concerned must have undergone medical treatment, and incurred costs which should be reimbursed from the trust. Effectively this means the beneficial class is confined to those members who have undergone medical treatment so this condition makes it impossible for the 바카라 사이트˜all or most바카라 사이트™ test at IHTA84/S86(3) to be satisfied (IHTM42915).

Separate settlements

As the trust will fail the 바카라 사이트˜all or most바카라 사이트™ test the funds in a Health Care Trust will be 바카라 사이트˜relevant property바카라 사이트™ for Inheritance Tax purposes. But, as the company is making contributions to the Trust which form part of the member바카라 사이트™s remuneration (in a similar way to an employer바카라 사이트™s contribution to an employee바카라 사이트™s pension scheme (IHTM17043) we take the view that the funds are multiple settlements made by the various members concerned. On that basis it is unlikely that tax might be payable.