Murgatroyd v Evans-Jackson [1967] 43 TC 581
Citation:Murgatroyd v Evans-Jackson [1967] 43 TC 581
Rule of thumb:If an organisation pays medical expenses of an employee, are these tax deductible? In some cases, yes, and others, no – it depends on the circumstances – probably not as it will likely not pass the dual purpose test.
Judgment:
The facts of this case were that a very valued employee suffered a non-work related accident. The time that this would have taken to be attended to medically on the NHS due to waiting lists would have been significant, and the employer stated that they would pay for the costs of private treatment so that the employee could get back quicker. The employer sought to deduct this as an expense of running the business. The Court held that this was not a deductible expense from profits, `The whole object of going into the nursing home in the first place was to receive treatment for the injury that he had sustained. It seems to me that it would offend common sense to say that at any rate one of his motives or purposes in going into the nursing home was not to receive treatment for that injury - treatment that would be to his benefit, not merely during the time when he was carrying on his business, but, as a living human being”. Plowman J
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