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Legislation
Income Tax (Trading and Other Income) Act 2005

Crossheading Health and employment insurance payments

  • Section 735 Health and employment insurance payments
  • Section 736 Health and employment risks and benefits
  • Section 737 Period for which payments may be made
  • Section 738 Risk of significant loss
  • Section 739 Conditions to be met by policies also providing other benefits
  • Section 740 Conditions to be met where policies are linked
  • Section 741 Aggregation of policies where employment ends for health reasons
  • Section 742 Meaning of “the insured”
  • Section 743 Policies for the benefit of others who contribute to premiums
  1. Health and employment insurance payments
  2. Period for which payments may be made

Section 737 | Period for which payments may be made

From legislation.gov.uk

(1)The condition in this section is that the only annual payments provided for by the policy which relate to the health or employment risk it insures against (“the insured risk”) are payments in respect of one or more of the following periods.

(2)They are—

(a)a period throughout which an illness, disability, infirmity or defect insured against by the part of the policy relating to the insured risk continues,

(b)a period throughout which, in circumstances insured against by the part of the policy relating to the insured risk, the insured is unemployed, does not hold an office or is not carrying on a trade, profession or vocation,

(c)a period throughout which, in circumstances insured against by the part of the policy relating to the insured risk, the insured's income is less than it would otherwise have been, and

(d)where a period within paragraph (a), (b) or (c) ends with the death of the insured, a period immediately following that period.

(3)For the purposes of subsection (2)(a), an illness, disability, infirmity or defect is treated as continuing during a period of convalescence or rehabilitation related to it.

(4)For the purposes of subsection (2)(c), income from the policy is ignored.

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