After many years contributing to a permanent health insurance policy i now find myself in the fortunate (if you can call it that) position of being able to successfully claim the replacement income of the policy.
I have never claimed tax relief for any of the premiums and have always treated them as a personal expense.
The policy pays out 70% of my income for the previous three tax years and will do so until i reach 65, some way off yet...!
My question is do i pay tax on the receipts from the insurance company?
I have always worked on the basis that unless i had treated this as a "benefit" paid by my company as part of my remuneration package, that the income generated would not be taxable.
Is this correct?
It does make a difference because the amount being received would put me into the HR tax category, so not something to get wrong...