(1)At the end of section 62 of the Finance Act 1976 (exceptions from general charge) there shall be inserted—
“(8)Section 61 above does not apply where the benefit consists—
(a)in providing the employee with medical treatment outside the United Kingdom (including providing for him to be an in-patient) in a case where the need for the treatment arises while the employee is outside the United Kingdom for the purpose of performing the duties of his employment; or
(b)in providing insurance for the employee against the cost of such (treatment in such a case;
and for the purpose of this subsection, medical treatment includes all forms of treatment for, and all procedures for diagnosing, any physical or mental ailment, infirmity, or defect.”.
(2)Section 68 of that Act (medical insurance) shall cease to have effect.
(3)In section 15(7)(a) of the Taxes Management Act 1970 and in section 61(2) of the said Act of 1976 for the words "to 68 " there shall be substituted the words " to 67 ".
(4)This section has effect for the year 1982-83 and subsequent years of assessment.".