HMRC internal manual

Employment Income Manual

Particular benefits: medical treatment when working abroad

Section 325 ITEPA 2003

No liability arises when an employer (or another person acting on behalf of an employer) incurs expense in providing medical treatment outside the United Kingdom for a director or employee:

  • when the need for the treatment arises while the taxpayer is outside the United Kingdom and
  • the absence from the United Kingdom is for the purpose of performing the duties of the office or employment.

This exemption applies where an employer commits itself to be responsible for any medical costs incurred by an employee whilst abroad on a business trip, even if the employee incurs the cost and is later reimbursed by the employer.

This exemption only covers the cost of treatment for the director or employee. It does not cover the cost of treatment provided for members of the family or household.

The exemption applies to the cost of providing insurance against the cost of such treatment, as well as to the cost of the treatment itself.