Health Cash Plan Providers And The Inland Revenue

EDM number 725 in 2002-03, proposed by Tony Clarke on 12/02/2003.

That this House notes that not-for-profit health cash plan providers started from 19th century working class traditions of charity and mutual support and funded local hospitals; further notes that since 1948 they have supported NHS patients by providing benefits for loss of earnings during stays in hospital, assistance with relatives, travel costs and charges for dental and optical treatment, on the birth of babies, and for injuries, and that trading surpluses are donated to the NHS or medical charities; and appreciates that the Inland Revenue has historically treated those trading surpluses as exempt from taxation; notes with concern that the Inland Revenue now proposes to tax such organisations, leading to a reduction in donations to the NHS and medical charities; further observes that such organisations have typically protected themselves against break up and asset stripping through rules that require that, on winding up, any assets go to other organisations with similar purpose; believes that changing this practice would remove important protections and that giving every contributor a right to attend meetings and vote would impose unnecessary and costly administrative burdens; believes, therefore, that the Inland Revenue's suggestion that such change is a prerequisite for tax exemption is inappropriate, would undermine the valuable work of such funds, reduce donations to the NHS and undermine Government policy to support self-help and charitable giving, whilst leading to increased rates for contributions; and urges the Chancellor of the Exchequer urgently to intervene.

This motion has been signed by a total of 61 MPs.