One of my clients offers Private Medical Insurance to players in their professional sportsteam. They have been told that premiums are always subject to BIK tax. Now there are a couple of issues that I have with this. The first is HMRC’s own reference to duality of purpose. The vast majority of claims relate to injuries sustained during playing or training so the marginal beenfit to the player is effectively zero and there is a particular case quoted relating to a stunt man that allows medical expenses as tax deductible. There are no insurances on the market that will cover sport injuries only so the personal benefit to the player is truly unavoidable and incidental.
Does anyone have any experience of this issue?