Draft regulations setting out the additional conditions that expenditure by employers on recommended medical treatment must meet in order to qualify for the new tax exemption at section 12 of Finance Act 2014 were published recently for consultation. Comments were requested by 15 October 2014.

The expenditure must be aimed at helping an employee return to work after a period of absence due to injury or ill-health. The exemption will be capped at £500 per employee per tax year. The conditions include the number of days an individual receiving a recommendation must be assessed as unfit for work, who can carry out such an assessment and the manner of the assessment.