Many landlords now operate a company, either as a property management agent, or a company to directly own rental property, or possibly a consulting company. And, many such company owners and directors are of an age where current and future health concerns are as important as financial concerns.
This article sets out some of the ways in which a tax deduction may be gained for health-related expenditure, for company owners.
Many people are more aware of the need to take care of their health as well as their finances as they get older – it’s a cliché, but ‘your health is your wealth’ is so true and we all take good health for granted at times.
However, in tax terms, costs associated with maintaining a person’s overall health and wellbeing are generally considered to have a ‘duality of purpose’ (meaning they are mainly private costs with only a secondary business-related aspect), and so any such expenditure is treated as a taxable Benefit-In-Kind (BIK). This means that both the employee and the employer pay for the value of the benefit. However, there are some benefits that are tax-free or that are tax-efficient to take.