Payments received from a sickness disability insurance policy are exempt from tax if the following conditions are met:
- the insured person did not receive Income Tax relief for the premiums paid for the policy
- the policy insures against a qualifying health or employment risk
- the payments are made during the qualifying period and
- the policy is a genuine insurance policy issued on arm’s length terms.
For more detailed info please see here:
IPTM6110 - Sickness disability and unemployment insurance: tax treatment: main rules: scope: ITTOIA05/S735
IPTM6115 - Sickness disability and unemployment insurance: tax treatment: main rules: qualifying risks and qualifying periods ITTOIA05/S736 & S737