Tax relief: employee liabilities and indemnity insurance

13 December 2016

The government has introduced legislation in Finance Bill 2017 to ensure that employees (or former employees) called to give evidence, for example at an inquiry, will be able to receive legal support funded by their employer tax-free.

Currently only those requiring legal support because of allegations against them can use the tax relief. The changes will take effect from 6 April 2017. Draft legislation has been published in provisions 7 and 8 on page 8 of the draft provisions for Finance Bill 2017.

Further details can be found in the Tax Information and Impact Note (TIIN):

If you have any comments on the changes please submit them by 1 February 2016 via email to or by post to:

Employment Income Policy team

Personal Tax: Customer, Product and Process

HM Revenue and Customs

Room 1E/08

100 Parliament Street

London SW1A 2BQ