Group Income Protection

February 15th, 2024

Anita acted for an employee who had been on long-term Group Income Protection (GIP) benefits for many years. The employee wanted to terminate his employment and receive a commuted lump sum from his employer’s insurers in lieu of the monthly GIP benefit he received.  He felt that while he was still employed, he could not move on with his life.

Through successful negotiations, Anita was able a secure a substantial commuted lump sum payment that was paid without deduction of tax because it was a payment wholly on account of disability (section 406 ITEPA 2003). He also got payments for notice and holiday pay and legal fees.  The client was delighted and finally could emigrate to Australia to be nearer to family.