P11D benefit received by widow

P11D benefit received by widow

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A director was employed by a limited company and unfortunately died. Whilst alive, the company was paying for BUPA for him and his wife. Prior to his death, the premiums were reported on his P11D as his wife was neither an employee or director (but is a shareholder). Following the death, a pension started to be paid from the company to the wife and the BUPA is still being paid for. The couple's daughter has now become a director in the company and there is a split opinion as to whether this BUPA should now be taxed on the daughter. Is there any legislation at all which might provide for a benefit being paid on death? It seems unfair if we went down the route of taxing the benefit on the daughter. Would welcome some thoughts!

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By geroge
26th Oct 2014 23:08

The question to ask is whether the benefit arises by reason of the employment of a relative, which seems to be the case.

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By Novakova
27th Oct 2014 07:28

P11D benefit received by widow
ITEPA 2003 c.201(3) states:
‘A benefit provided by an employer is to be regarded as provided by reason of the employment unless—
(a) the employer is an individual, and
(b) the provision is made in the normal course of the employer’s domestic, family or personal relationships.’

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By Portia Nina Levin
27th Oct 2014 10:09

Strangely

I am forced to agree with the googlebot.

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