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The best travel insurance policies and providers

It's easy to dismiss the value of travel insurance until you need it.

Many travelers have strong opinions about whether you should buy travel insurance . However, the purpose of this post isn't to determine whether it's worth investing in. Instead, it compares some of the top travel insurance providers and policies so you can determine which travel insurance option is best for you.

Of course, as the coronavirus remains an ongoing concern, it's important to understand whether travel insurance covers pandemics. Some policies will cover you if you're diagnosed with COVID-19 and have proof of illness from a doctor. Others will take coverage a step further, covering additional types of pandemic-related expenses and cancellations.

Know, though, that every policy will have exclusions and restrictions that may limit coverage. For example, fear of travel is generally not a covered reason for invoking trip cancellation or interruption coverage, while specific stipulations may apply to elevated travel warnings from the Centers for Disease Control and Prevention.

Interested in travel insurance? Visit InsureMyTrip.com to shop for plans that may fit your travel needs.

So, before buying a specific policy, you must understand the full terms and any special notices the insurer has about COVID-19. You may even want to buy the optional cancel for any reason add-on that's available for some comprehensive policies. While you'll pay more for that protection, it allows you to cancel your trip for any reason and still get some of your costs back. Note that this benefit is time-sensitive and has other eligibility requirements, so not all travelers will qualify.

In this guide, we'll review several policies from top travel insurance providers so you have a better understanding of your options before picking the policy and provider that best address your wants and needs.

The best travel insurance providers

To put together this list of the best travel insurance providers, a number of details were considered: favorable ratings from TPG Lounge members, the availability of details about policies and the claims process online, positive online ratings and the ability to purchase policies in most U.S. states. You can also search for options from these (and other) providers through an insurance comparison site like InsureMyTrip .

When comparing insurance providers, I priced out a single-trip policy for each provider for a $2,000, one-week vacation to Istanbul . I used my actual age and state of residence when obtaining quotes. As a result, you may see a different price — or even additional policies due to regulations for travel insurance varying from state to state — when getting a quote.

AIG Travel Guard

AIG Travel Guard receives many positive reviews from readers in the TPG Lounge who have filed claims with the company. AIG offers three plans online, which you can compare side by side, and the ability to examine sample policies. Here are three plans for my sample trip to Turkey.

AIG Travel Guard also offers an annual travel plan. This plan is priced at $259 per year for one Florida resident.

Additionally, AIG Travel Guard offers several other policies, including a single-trip policy without trip cancellation protection . See AIG Travel Guard's COVID-19 notification and COVID-19 advisory for current details regarding COVID-19 coverage.

Preexisting conditions

Typically, AIG Travel Guard wouldn't cover you for any loss or expense due to a preexisting medical condition that existed within 180 days of the coverage effective date. However, AIG Travel Guard may waive the preexisting medical condition exclusion on some plans if you meet the following conditions:

• You purchase the plan within 15 days of your initial trip payment.
• The amount of coverage you purchase equals all trip costs at the time of purchase. You must update your coverage to insure the costs of any subsequent arrangements that you add to your trip within 15 days of paying the travel supplier for these additional arrangements.
• You must be medically able to travel when you purchase your plan.

Standout features

• The Deluxe and Preferred plans allow you to purchase an upgrade that lets you cancel your trip for any reason. However, reimbursement under this coverage will not exceed 50% or 75% of your covered trip cost.
• You can include one child (age 17 and younger) with each paying adult for no additional cost on most single-trip plans.
• Other optional upgrades, including an adventure sports bundle, a baggage bundle, an inconvenience bundle, a pet bundle, a security bundle and a wedding bundle, are available on some policies. So, an AIG Travel Guard plan may be a good choice if you know you want extra coverage in specific areas.

Purchase your policy here: AIG Travel Guard .

Allianz Travel Insurance

Allianz is one of the most highly regarded providers in the TPG Lounge, and many readers found the claim process reasonable. Allianz offers many plans, including the following single-trip plans for my sample trip to Turkey.

If you travel frequently, it may make sense to purchase an annual multi-trip policy. For this plan, all of the maximum coverage amounts in the table below are per trip (except for the trip cancellation and trip interruption amounts, which are an aggregate limit per policy). Trips typically must last no more than 45 days, although some plans may cover trips of up to 90 days.

See Allianz's coverage alert for current information on COVID-19 coverage.

Most Allianz travel insurance plans may cover preexisting medical conditions if you meet particular requirements. For the OneTrip Premier, Prime and Basic plans, the requirements are as follows:

• You purchased the policy within 14 days of the date of the first trip payment or deposit.
• You were a U.S. resident when you purchased the policy.
• You were medically able to travel when you purchased the policy.
• On the policy purchase date, you insured the total, nonrefundable cost of your trip (including arrangements that will become nonrefundable or subject to cancellation penalties before your departure date). If you incur additional nonrefundable trip expenses after purchasing this policy, you must insure them within 14 days of their purchase.
• Allianz offers reasonably priced annual policies for independent travelers and families who take multiple trips lasting up to 45 days (or 90 days for select plans) per year.
• Some Allianz plans provide the option of receiving a flat reimbursement amount without receipts for trip delay and baggage delay claims. Of course, you can also submit receipts to get up to the maximum refund.
• For emergency transportation coverage, you or someone on your behalf must contact Allianz, and Allianz must then make all transportation arrangements in advance. However, most Allianz policies provide an option if you cannot contact the company: Allianz will pay up to what it would have paid if it had made the arrangements.

Purchase your policy here: Allianz Travel Insurance .

American Express Travel Insurance

American Express Travel Insurance offers four different package plans and a build-your-own coverage option. You don't have to be an American Express cardholder to purchase this insurance. Here are the four package options for my sample weeklong trip to Turkey. Unlike some other providers, Amex won't ask for your travel destination on the initial quote (but will when you purchase the plan).

Amex's build-your-own coverage plan is unique because you can purchase just the coverage you need. For most types of protection, you can even select the coverage amount that works best for you.

The prices for the packages and the build-your-own plan don't increase for longer trips — as long as the trip cost remains constant. However, the emergency medical and dental benefit is only available for your first 60 days of travel.

Typically, Amex won't cover any loss you incur because of a preexisting medical condition that existed within 90 days of the coverage effective date. However, Amex may waive its preexisting-condition exclusion if you meet both of the following requirements:

• You must be medically able to travel at the time you pay the policy premium.
• You pay the policy premium within 14 days of making the first covered trip deposit.
• Amex's build-your-own coverage option allows you to only purchase — and pay for — the coverage you need.
• Coverage on long trips doesn't cost more than coverage for short trips, making this policy ideal for extended getaways. However, the emergency medical and dental benefit only covers your first 60 days of travel.
• American Express Travel Insurance can protect travel expenses you purchase with Amex Membership Rewards points in the Pay with Points program (as well as travel expenses bought with cash, debit or credit). However, travel expenses bought with other types of points and miles aren't covered.

Purchase your policy here: American Express Travel Insurance .

GeoBlue is different from most other providers described in this piece because it only provides medical coverage while you're traveling internationally and does not offer benefits to protect the cost of your trip. There are many different policies. Some require you to have primary health insurance in the U.S. (although it doesn't need to be provided by Blue Cross Blue Shield), but all of them only offer coverage while traveling outside the U.S.

Two single-trip plans are available if you're traveling for six months or less. The Voyager Choice policy provides coverage (including medical services and medical evacuation for a sudden recurrence of a preexisting condition) for trips outside the U.S. to travelers who are 95 or younger and already have a U.S. health insurance policy.

The Voyager Essential policy provides coverage (including medical evacuation for a sudden recurrence of a preexisting condition) for trips outside the U.S. to travelers who are 95 or younger, regardless of whether they have primary health insurance.

In addition to these options, two multi-trip plans cover trips of up to 70 days each for one year. Both policies provide coverage (including medical services and medical evacuation for preexisting conditions) to travelers with primary health insurance.

Be sure to check out GeoBlue's COVID-19 notices before buying a plan.

Most GeoBlue policies explicitly cover sudden recurrences of preexisting conditions for medical services and medical evacuation.

• GeoBlue can be an excellent option if you're mainly concerned about the medical side of travel insurance.
• GeoBlue provides single-trip, multi-trip and long-term medical travel insurance policies for many different types of travel.

Purchase your policy here: GeoBlue .

IMG offers various travel medical insurance policies for travelers, as well as comprehensive travel insurance policies. For a single trip of 90 days or less, there are five policy types available for vacation or holiday travelers. Although you must enter your gender, males and females received the same quote for my one-week search.

You can purchase an annual multi-trip travel medical insurance plan. Some only cover trips lasting up to 30 or 45 days, but others provide coverage for longer trips.

See IMG's page on COVID-19 for additional policy information as it relates to coronavirus-related claims.

Most plans may cover preexisting conditions under set parameters or up to specific amounts. For example, the iTravelInsured Travel LX travel insurance plan shown above may cover preexisting conditions if you purchase the insurance within 24 hours of making the final payment for your trip.

For the travel medical insurance plans shown above, preexisting conditions are covered for travelers younger than 70. However, coverage is capped based on your age and whether you have a primary health insurance policy.

• Some annual multi-trip plans are modestly priced.
• iTravelInsured Travel LX may offer optional cancel for any reason and interruption for any reason coverage, if eligible.

Purchase your policy here: IMG .

Travelex Insurance

Travelex offers three single-trip plans: Travel Basic, Travel Select and Travel America. However, only the Travel Basic and Travel Select plans would be applicable for my trip to Turkey.

See Travelex's COVID-19 coverage statement for coronavirus-specific information.

Typically, Travelex won't cover losses incurred because of a preexisting medical condition that existed within 60 days of the coverage effective date. However, the Travel Select plan may offer a preexisting condition exclusion waiver. To be eligible for this waiver, the insured traveler must meet all the following conditions:

• You purchase the plan within 15 days of the initial trip payment.
• The amount of coverage purchased equals all prepaid, nonrefundable payments or deposits applicable to the trip at the time of purchase. Additionally, you must insure the costs of any subsequent arrangements added to the same trip within 15 days of payment or deposit.
• All insured individuals are medically able to travel when they pay the plan cost.
• The trip cost does not exceed the maximum trip cost limit under trip cancellation as shown in the schedule per person (only applicable to trip cancellation, interruption and delay).
• Travelex's Travel Select policy can cover trips lasting up to 364 days, which is longer than many single-trip policies.
• Neither Travelex policy requires receipts for trip and baggage delay expenses less than $25.
• For emergency evacuation coverage, you or someone on your behalf must contact Travelex and have Travelex make all transportation arrangements in advance. However, both Travelex policies provide an option if you cannot contact Travelex: Travelex will pay up to what it would have paid if it had made the arrangements.

Purchase your policy here: Travelex Insurance .

Seven Corners

Seven Corners offers a wide variety of policies. Here are the policies that are most applicable to travelers on a single international trip.

Seven Corners also offers many other types of travel insurance, including an annual multi-trip plan. You can choose coverage for trips of up to 30, 45 or 60 days when purchasing an annual multi-trip plan.

See Seven Corner's page on COVID-19 for additional policy information as it relates to coronavirus-related claims.

Typically, Seven Corners won't cover losses incurred because of a preexisting medical condition. However, the RoundTrip Choice plan offers a preexisting condition exclusion waiver. To be eligible for this waiver, you must meet all of the following conditions:

• You buy this plan within 20 days of making your initial trip payment or deposit.
• You or your travel companion are medically able and not disabled from travel when you pay for this plan or upgrade your plan.
• You update the coverage to include the additional cost of subsequent travel arrangements within 15 days of paying your travel supplier for them.
• Seven Corners offers the ability to purchase optional sports and golf equipment coverage. If purchased, this extra insurance will reimburse you for the cost of renting sports or golf equipment if yours is lost, stolen, damaged or delayed by a common carrier for six or more hours. However, Seven Corners must authorize the expenses in advance.
• You can add cancel for any reason coverage or trip interruption for any reason coverage to RoundTrip plans. Although some other providers offer cancel for any reason coverage, trip interruption for any reason coverage is less common.
• Seven Corners' RoundTrip Choice policy offers a political or security evacuation benefit that will transport you to the nearest safe place or your residence under specific conditions. You can also add optional event ticket registration fee protection to the RoundTrip Choice policy.

Purchase your policy here: Seven Corners .

World Nomads

World Nomads is popular with younger, active travelers because of its flexibility and adventure-activities coverage on the Explorer plan. Unlike many policies offered by other providers, you don't need to estimate prepaid costs when purchasing the insurance to have access to trip interruption and cancellation insurance.

World Nomads offers two single-trip plans.

World Nomads has a page dedicated to coronavirus coverage , so be sure to view it before buying a policy.

World Nomads won't cover losses incurred because of a preexisting medical condition (except emergency evacuation and repatriation of remains) that existed within 90 days of the coverage effective date. Unlike many other providers, World Nomads doesn't offer a waiver.

• World Nomads' policies cover more adventure sports than most providers, so activities such as bungee jumping are included. The Explorer policy covers almost any adventure sport, including skydiving, stunt flying and caving. So, if you partake in adventure sports while traveling, the Explorer policy may be a good fit.
• World Nomads' policies provide nonmedical evacuation coverage for transportation expenses if there is civil or political unrest in the country you are visiting. The coverage may also transport you home if there is an eligible natural disaster or a government expels you.

Purchase your policy here: World Nomads .

Other options for buying travel insurance

This guide details the policies of eight providers with the information available at the time of publication. There are many options when it comes to travel insurance, though. To compare different policies quickly, you can use a travel insurance aggregator like InsureMyTrip to search. Just note that these search engines won't show every policy and every provider, and you should still research the provided policies to ensure the coverage fits your trip and needs.

You can also purchase a plan through various membership associations, such as USAA, AAA or Costco. Typically, these organizations partner with a specific provider, so if you are a member of any of these associations, you may want to compare the policies offered through the organization with other policies to get the best coverage for your trip.

Related: Should you get travel insurance if you have credit card protection?

Is travel insurance worth getting?

Whether you should purchase travel insurance is a personal decision. Suppose you use a credit card that provides travel insurance for most of your expenses and have medical insurance that provides adequate coverage abroad. In that case, you may be covered enough on most trips to forgo purchasing travel insurance.

However, suppose your medical insurance won't cover you at your destination and you can't comfortably cover a sizable medical evacuation bill or last-minute flight home . In that case, you should consider purchasing travel insurance. If you travel frequently, buying an annual multi-trip policy may be worth it.

What is the best COVID-19 travel insurance?

There are various aspects to keep in mind in the age of COVID-19. Consider booking travel plans that are fully refundable or have modest change or cancellation fees so you don't need to worry about whether your policy will cover trip cancellation. This is important since many standard comprehensive insurance policies won't reimburse your insured expenses in the event of cancellation if it's related to the fear of traveling due to COVID-19.

However, if you book a nonrefundable trip and want to maintain the ability to get reimbursed (up to 75% of your insured costs) if you choose to cancel, you should consider buying a comprehensive travel insurance policy and then adding optional cancel for any reason protection. Just note that this benefit is time-sensitive and has eligibility requirements, so not all travelers will qualify.

Providers will often require CFAR purchasers insure the entire dollar amount of their travels to receive the coverage. Also, many CFAR policies mandate that you must cancel your plans and notify all travel suppliers at least 48 hours before your scheduled departure.

Likewise, if your primary health insurance won't cover you while on your trip, it's essential to consider whether medical expenses related to COVID-19 treatment are covered. You may also want to consider a MedJet medical transport membership if your trip is to a covered destination for coronavirus-related evacuation.

Ultimately, the best pandemic travel insurance policy will depend on your trip details, travel concerns and your willingness to self-insure. Just be sure to thoroughly read and understand any terms or exclusions before purchasing.

What are the different types of travel insurance?

Whether you purchase a comprehensive travel insurance policy or rely on the protections offered by select credit cards, you may have access to the following types of coverage:

• Baggage delay protection may reimburse for essential items and clothing when a common carrier (such as an airline) fails to deliver your checked bag within a set time of your arrival at a destination. Typically, you may be reimbursed up to a particular amount per incident or per day.
• Lost/damaged baggage protection may provide reimbursement to replace lost or damaged luggage and items inside that luggage. However, valuables and electronics usually have a relatively low maximum benefit.
• Trip delay reimbursement may provide reimbursement for necessary items, food, lodging and sometimes transportation when you're delayed for a substantial time while traveling on a common carrier such as an airline. This insurance may be beneficial if weather issues (or other covered reasons for which the airline usually won't provide compensation) delay you.
• Trip cancellation and interruption protection may provide reimbursement if you need to cancel or interrupt your trip for a covered reason, such as a death in your family or jury duty.
• Medical evacuation insurance can arrange and pay for medical evacuation if deemed necessary by the insurance provider and a medical professional. This coverage can be particularly valuable if you're traveling to a region with subpar medical facilities.
• Travel accident insurance may provide a payment to you or your beneficiary in the case of your death or dismemberment.
• Emergency medical insurance may provide payment or reimburse you if you must seek medical care while traveling. Some plans only cover emergency medical care, but some also cover other types of medical care. You may need to pay a deductible or copay.
• Rental car coverage may provide a collision damage waiver when renting a car. This waiver may reimburse for collision damage or theft up to a set amount. Some policies also cover loss-of-use charges assessed by the rental company and towing charges to take the vehicle to the nearest qualified repair facility. You generally need to decline the rental company's collision damage waiver or similar provision to be covered.

Should I buy travel health insurance?

If you purchase travel with credit cards that provide various trip protections, you may not see much need for additional travel insurance. However, you may still wonder whether you should buy travel medical insurance.

If your primary health insurance covers you on your trip, you may not need travel health insurance. Your domestic policy may not cover you outside the U.S., though, so it's worth calling the number on your health insurance card if you have coverage questions. If your primary health insurance wouldn't cover you, it's likely worth purchasing travel medical insurance. After all, as you can see above, travel medical insurance is often very modestly priced.

How much does travel insurance cost?

Travel insurance costs depend on various factors, including the provider, the type of coverage, your trip cost, your destination, your age, your residency and how many travelers you want to insure. That said, a standard travel insurance plan will generally set you back somewhere between 4% and 10% of your total trip cost. However, this can get lower for more basic protections or become even higher if you include add-ons like cancel for any reason protection.

The best way to determine how much travel insurance will cost is to price out your trip with a few providers discussed in the guide. Or, visit an insurance aggregator like InsureMyTrip to quickly compare options across multiple providers.

When and how to get travel insurance

For the most robust selection of available travel insurance benefits — including time-sensitive add-ons like CFAR protection and waivers of preexisting conditions for eligible travelers — you should ideally purchase travel insurance on the same day you make your first payment toward your trip.

However, many plans may still offer a preexisting conditions waiver for those who qualify if you buy your travel insurance within 14 to 21 days of your first trip expense or deposit (this time frame may vary by provider). If you don't need a preexisting conditions waiver or aren't interested in CFAR coverage, you can purchase travel insurance once your departure date nears.

You must purchase coverage before it's needed. Some travel medical plans are available for purchase after you have departed, but comprehensive plans that include medical coverage must be purchased before departing.

Additionally, you can't buy any medical coverage once you require medical attention. The same applies to all travel insurance coverage. Once you recognize the need, it's too late to protect your trip.

Once you've shopped around and decided upon the best travel insurance plan for your trip, you should be able to complete your purchase online. You'll usually be able to download your insurance card and the complete policy shortly after the transaction is complete.

Related: 7 times your credit card's travel insurance might not cover you

Bottom line

Not all travel insurance policies and providers are equal. Before buying a plan, read and understand the policy documents. By doing so, you can choose a plan that's appropriate for you and your trip — including the features that matter most to you.

For example, if you plan to go skiing or rock climbing, make sure the policy you buy doesn't contain exclusions for these activities. Likewise, if you're making two back-to-back trips during which you'll be returning home for a short time in between, be sure the plan doesn't terminate coverage at the end of your first trip.

If you're looking to cover a sudden recurrence of a preexisting condition, select a policy with a preexisting condition waiver and fulfill the requirements for the waiver. After all, buying insurance won't help if your policy doesn't cover your losses.

Disclaimer : This information is provided by IMT Services, LLC ( InsureMyTrip.com ), a licensed insurance producer (NPN: 5119217) and a member of the Tokio Marine HCC group of companies. IMT's services are only available in states where it is licensed to do business and the products provided through InsureMyTrip.com may not be available in all states. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not create or modify any insurance policy terms in any way. For more information, please visit www.insuremytrip.com .

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Travel Insurance: What It Covers and When to Buy It

By Elaine Glusac

In the wake of Covid, travel insurance sales have spiked with the rebound in travel as people seek to protect their investments against flight delays and cancellations, extreme weather events and the persistence of the virus. But travel insurance is complicated with a range of benefits, inclusions and prices. Here’s what you need to know before you buy.

Know what’s covered

Generally speaking, travel insurance covers unforeseen events, like an illness in the family, the loss of a job or a natural disaster, that force you to cancel or interrupt a trip. It can also apply in the event of a strike at a transportation company, a terrorist attack in your destination or when your travel provider goes bankrupt. These are known as covered reasons . Most polices also include medical coverage, which is useful abroad where your health insurance may not cover you.

While policy prices vary based on age, length of travel and type of coverage, expect to pay between 4 to 10 percent of your entire trip cost to get insured.

Insure nonrefundable expenses

Travel insurance was designed to protect expenses you can’t get back any other way when things go wrong. Think of nonrefundable Airbnb reservations or the cost of a cruise to the Galápagos.

If your hotel is refundable and you can get the value of your flights back in credits, you can skip travel insurance.

Buy close to booking

Travel insurers say the best time to buy travel insurance — which usually takes effect within a day of purchase — is just after making your travel plans to have the largest possible coverage window. A lot can happen between booking a Christmas market cruise in Europe in June and going in December.

With many plans, purchasing travel insurance 10 to 14 days from your first trip payment entitles you to “early purchase” benefits such as a waiver for pre-existing medical conditions that impact travel. If such a waiver is included, it is usually prominent in a summary of benefits, so read it carefully.

“Not all plans have a pre-existing condition waiver,” said Suzanne Morrow, the senior vice president of InsureMyTrip.com , an online insurance marketplace. “If I have a heart condition and if something occurs, I don’t want it excluded, so I would need to buy a policy within 14 days of the first dollar spent.”

Hedge against the weather

You can’t control the weather, but you can insure against its unexpected disruptions. For example, if you’re ready to jump on great rates in the Caribbean during the height of hurricane season, buy your insurance immediately after booking so that if a hurricane develops and your destination is evacuated, you’ll be covered.

“That’s probably the biggest use case for travel insurance,” said Stan Sandberg, a co-founder of TravelInsurance.com , an online marketplace. He counsels travelers to buy early — if you wait and the storm is named it will be too late to insure against it, because it is no longer an unforeseen event.

Similarly, with winter travel, if you’ve purchased nonrefundable ski lift tickets and a storm prevents you from reaching the resort, you may be able to claim the unused portion of your ski pass.

This coverage may prove more valuable as climate change exacerbates weather events like hurricanes and tornadoes, which are considered “natural disasters” and are covered by most policies.

Pick up the phone

With the proliferation of automated insurance offers when you buy airline tickets or tours, travel insurance can feel like a one-size-fits-all product. It is not. Many policies, for example, exclude extreme sports like skydiving and mountain climbing, though there are specialty policies that include them.

If you have a specific concern — a family member is sick or you’re going heli-skiing — the best way to know if a travel insurance policy will cover you is to call an insurer or the help line at a travel insurance marketplace to get advice.

“Tell them the what-if scenario and then you can get professional and accurate advice,” Ms. Morrow said. “Thinking you’re covered and then having your claim denied is salt in the wound.”

Travel insurance does not cover ‘unpleasantries’

What if you’re dreading spending a week in an un-air-conditioned rental in England during a heat wave and decide you don’t want to go? Most standard travel insurance will not cover a change of heart.

“Travel insurance doesn’t cover you for unpleasantries,” said Carol Mueller, the vice president for strategic marketing at Berkshire Hathaway Travel Protection.

A policy upgrade, Cancel for Any Reason coverage, which is not available in every state, will cover a change of heart, usually up until a few days before departure. Most only reimburse 50 to 75 percent of your costs and the purchase must be made within weeks of your initial trip payment. It will bump your insurance premium up 40 to 50 percent, according to the insurance marketplace Squaremouth.com , which only recommends C.F.A.R. for travelers with specific concerns not included under covered reasons for trip cancellation.

A relatively new twist in trip protection, Interruption for Any Reason , works like C.F.A.R. in that it reimburses a portion of your expenses and can be invoked if you decide to bail while you’re on a trip for a reason that isn’t covered by standard trip insurance. Normally, you must buy it within weeks of your initial trip payment and be 72 hours into a trip before you can use it.

Keep records

If something goes wrong and you need to make a claim, you’ll need proof in the form of a paper trail. That could be receipts for clothing you purchased when your bags went missing, a hotel room required when your flight was canceled (along with flight cancellation notices from the airline) or a doctor’s note stating that you have Covid — or another illness — and are unable to travel. (With Covid, a positive test taken at home is not considered official documentation for the purposes of a claim.)

Resist pressure to buy flight insurance

When purchasing an airline ticket online, most carriers offer travel insurance to cover the cost with some version of vaguely menacing language like, “Do you really want to risk your investment?” when you decline.

Don’t fall for it. You may want to insure that ticket, but price out the policy elsewhere. A recent offer to insure a $428 flight for nearly $28 on an airline website cost $12 to $96 with a range of options at InsureMyTrip.com.

The $12 option was closest to the airline’s offer. Caveat emptor.

An earlier version of this article misspelled the first name of the senior vice president of InsureMyTrip.com , an online insurance marketplace. It is Suzanne Morrow, not Suzanna.

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Open Up Your World

Considering a trip, or just some armchair traveling here are some ideas..

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Mumbai:  Spend 36 hours in this fast-changing Indian city  by exploring ancient caves, catching a concert in a former textile mill and feasting on mangoes.

Kyoto:  The Japanese city’s dry gardens offer spots for quiet contemplation  in an increasingly overtouristed destination.

Iceland:  The country markets itself as a destination to see the northern lights. But they can be elusive, as one writer recently found .

Texas:  Canoeing the Rio Grande near Big Bend National Park can be magical. But as the river dries, it’s getting harder to find where a boat will actually float .

• Best overall
• Best for exotic trips
• Best for trip interruption
• Best for family coverage
• Best for long trips

How we reviewed international travel insurance companies

Best international travel insurance for april 2024.

Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate insurance products to write unbiased product reviews.

If you're planning your next vacation or trip out of the country, be sure to factor in travel insurance. Unexpected medical emergencies when traveling can drain your bank account, especially when you're traveling internationally. The best travel insurance companies for international travel can step in to provide you with peace of mind and financial protection while you're abroad.

Best International Travel Insurance Companies

Best overall: Allianz Travel Insurance

Best for exotic travel: World Nomads Travel Insurance

Best for trip interruption coverage: C&F Travel Insured

Best for families: Travelex Travel Insurance

Best for long-term travel: Seven Corners Travel Insurance

Best overall: Allianz

Allianz Travel Insurance  offers the ultimate customizable coverage for international trips, whether you're a frequent jetsetter or an occasional traveler. You can choose from an a la carte of single or multi-trip plans, as well as add-ons, including rental car damage, cancel for any reason (CFAR) , adventure sport, and business travel coverage. And with affordable pricing compared to competitors, Allianz is a budget-friendly choice for your international travel insurance needs. 

The icing on the cake is Allyz TraveSmart, Allainz's highly-rated mobile app, which has an average rating of 4.4 out of five stars on the Google Play store across over 2,600 reviews and 4.8 out of five stars from over 22,000 reviews on the Apple app store. So, you can rest easy knowing that you can access your policy and file claims anywhere in the world without a hassle.

Read our Allianz travel insurance review here.

Best for exotic trips: World Nomads

World Nomads Travel Insurance  offers coverage for over 150 specific activities, so you can focus on the adventure without worrying about gaps in your coverage. 

You can select its budget-friendly standard plan, starting at $79. Or if you're an adrenaline junkie seeking more thrills, you can opt for the World Nomads' Explorer plan for $120, which includes extra sports like skydiving, scuba diving, and heli-skiing. And World Nomads offers 24/7 assistance, so you can confidently travel abroad, knowing that help is just a phone call away. 

Read our World Nomads travel insurance review here.

Best for trip interruption: C&F Travel Insured

C&F Travel Insured offers 100% coverage for trip cancellation, up to 150% for trip interruption, and reimbursement for up to 75% of your non-refundable travel costs with select plans. This means you don't have to worry about losing your hard-earned money on non-refundable travel costs if your trip ends prematurely. 

Travel Insured also stands out for its extensive "reasons for cancellation" coverage. Unlike many insurers, the company covers hurricane warnings from the National Oceanic and Atmospheric Administration (NOAA).

Read our Travel Insured review here.

Best for family coverage: Travelex

Travelex Travel Insurance offers coverage for your whole crew, perfect for when you're planning a family trip. Its family plan insures all your children 17 and under at no additional cost. The travel insurance provider also offers add-ons like adventure sports and car rental collision coverage to protect your family under any circumstance. Got pets? With Travelex's Travel Select plan, you can also get coverage for your furry friend's emergency medical and transportation expenses. 

Read our Travelex insurance review here.

Best for long trips: Seven Corners

Seven Corners Travel Insurance offers specialized coverage that the standard short-term travel insurance policy won't provide, which is helpful if you're embarking on a long-term trip. You can choose from several plans, including the Annual Multi-Trip plan, which provides medical coverage for multiple international trips for up to 364 days. This policy also offers COVID-19 medical and evacuation coverage up to $1 million. 

You also get the added benefit of incidental expense coverage. This policy will cover remote health-related services and information, treatment of injury or illness, and live consultations via telecommunication. 

Read our Seven Corners travel insurance review here.

How to find the right international travel insurance company 

Different travelers and trips require different types of insurance coverage. So, consider these tips if you're in the market to insure your trip. 

Determine your needs 

• Consider the nature of your travel (leisure, business, or adventure) and the associated risks (medical emergencies, trip cancellations, etc.).
• Determine your budget and the amount of coverage you require. 
• Consider the duration of your trip and the countries you'll be visiting, as some policies won't cover specific destinations. 

Research the reputation of the company 

• Look for the company's reviews and ratings from reputable sources like consumer advocacy groups and independent website reviews. 
• Check the provider's financial stability and credit ratings to ensure it can pay out claims reliably. 
• Investigate the company's claims process to ensure it can provide timely support if you need to file a claim.

Compare prices

• Get quotes from multiple providers to compare rates and coverage options.
• See if the company provides discounts or special offers to lower your cost. 
• Look at the deductible or any out-of-pocket expenses you may have to pay if you file a claim to determine if you can afford it. 

Understanding international travel insurance coverage options 

Travel insurance can be confusing, but we're here to simplify it for you. We'll break down the industry's jargon to help you understand what travel insurance covers to help you decide what your policy needs. Bear in mind that exclusions and limitations for your age and destination may apply. 

Finding the best price for international travel insurance

Your policy cost will depend on several factors, such as the length of your trip, destination, coverage limits, and age. Typically, a comprehensive policy includes travel cancellation coverage costs between 5% and 10% of your total trip cost.

If you're planning an international trip that costs $4,500, you can expect to pay anywhere from $225 to $450 for your policy. Comparing quotes from multiple providers can help you find a budget-friendly travel insurance policy that meets your needs.

We ranked and assigned superlatives to the best travel insurance companies based on our insurance rating methodology . It focuses on several key factors, including: 

• Policy types: We analyzed company offerings such as coverage levels, exclusions, and policy upgrades, taking note of providers that offer a range of travel-related issues beyond the standard coverages. 
• Affordability: We recognize that cheap premiums don't necessarily equate to sufficient coverage. So, we seek providers that offer competitive rates with comprehensive policies and quality customer service. We also call out any discounts or special offers available. 
• Flexibility: Travel insurance isn't one-size-fits-all. We highlight providers that offer a wide array of coverage options, including single-trip, multi-trip, and long-term policies.
• Claims handling: The claims process should be pain-free for policyholders. We seek providers that offer a streamlined process via online claims filing and a track record of handling claims fairly and efficiently. 
• Quality customer service: Good customer service is as important as affordability and flexibility. We highlight companies that offer 24/7 assistance and have a strong record of customer service responsiveness. 

We consult user feedback and reviews to determine how each company fares in each category. We also check the provider's financial rating and volume of complaints via third-party rating agencies. 

The best insurance policy depends on your individual situation, including your destination and budget. However, popular options include Allianz Travel Insurance, World Nomads, and Travel Guard. 

International health insurance and travel insurance serve different purposes. While both may cover medical expenses, international health insurance provides long-term health insurance for working abroad. Meanwhile, travel insurance offers short-term coverage for the duration of your trip. 

Typically, your regular health insurance won't cover you out of the country, so you'll want to make sure your travel insurance has adequate medical emergency coverage. Depending on your travel plans, you may want to purchase add-ons, such as adventure sports coverage, if you're planning on doing anything adventurous like bungee jumping.

Travel insurance is worth the price for international travel because they're generally more expensive, so you have more to lose. Additionally, your regular health insurance won't cover you in other countries, so without travel insurance, you'll end up paying out of pocket for any emergency medical care you receive out of the US.

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Best Annual Travel Insurance in 2024

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

If you’re a frequent traveler, annual travel insurance may be something you’ve been considering. Unlike single-trip insurance, annual travel insurance plans can cover you for an entire year, no matter how often you’re on the road.

Let’s look at the best yearly travel insurance companies, why we choose them and the coverage you can expect.

Factors we considered when picking travel insurance companies

We used the following criteria when choosing which companies we thought were best:

Cost . Annual plans can be expensive — depending on the type of coverage you choose — so we wanted ensure that they stayed affordable. 

Types of coverage . Travel insurance for annual travelers can be limited in its coverage. We picked the ones with the broadest range of coverage for possible travel disruptions.

Coverage amounts . Annual trip insurance isn’t worth much if your limits are too low. Instead, we wanted plans with reasonable coverage amounts. 

Customizability . If your travels take you to different places, you’ll want the ability to customize your plan. The best annual travel insurance plans can provide this. 

» Learn more: What does travel insurance cover?

An overview of the best annual travel insurance

We gathered quotes from various travel insurance companies to determine the best annual travel insurance policies. In these examples, we used a year-long trip by a 22-year-old from Alabama. We indicated the main countries of travel as France and Malaysia, and when asked, put the total trip costs at $6,000.

The average cost for an annual travel insurance plan came out to $220. The plans ranged from $138-$386.

Let’s take a closer look at our top recommendations for annual travel insurance.

1. Allianz Travel

What makes Allianz travel insurance great:

Lower than average cost.

Provides health care and travel insurance benefits.

Includes rental car insurance up to $45,000. 

Here’s a snippet from our Allianz Travel insurance review :

“AllTrips Basic (annual plan) is suitable for those who would like emergency medical coverage while abroad but don't need trip cancellation and interruption benefits. The AllTrips Prime, Executive and Premier plans provide an entire year of comprehensive travel insurance benefits.

The Executive and Premier plans offer various levels of trip cancellation and interruption benefits. The Executive plan is specifically designed for business travelers since it offers protection for business equipment.”

2. Seven Corners

What makes Seven Corners great:

Offers up to $20,000 for acute coverage of pre-existing conditions. 

Includes up to $1 million for emergency medical evacuation. 

Optional add-on for adventure sport activities.

$0 deductible available. 

Here’s a snippet from our Seven Corners review :

“Seven Corners offers one annual policy called Travel Medical Annual Multi-Trip. The policy can be customized depending on how long you plan to be away from home for any one trip. You can travel as much as you like during the 364 days, so long as any one trip doesn’t exceed the option selected — 30, 45 or 60 days.”

What makes IMG great:

Good customizability with medical evacuations and sports coverage. 

Low $250 deductible.

Includes coverage for semi-private hospital rooms. 

Here’s a snippet from our IMG review:

“Some policies provide emergency medical evacuation coverage, while others skip this benefit entirely. This benefit may be more important to you if you travel to a remote location or engage in physical activity such as trekking.

More comprehensive plans may include other benefits such as assistance with acquiring a new passport, reimbursing reward mile redeposit fees or coverage for pre-existing conditions. If these are something you’re interested in, be sure to check that your policy includes these options.”

4. Trawick International

What makes Trawick International great:

100% coverage for trip cancellation and trip interruption. 

Emergency medical evacuation included. 

Trip delay reimbursement coverage. 

Here’s a snippet from our Trawick International review :

“Trawick International is a comprehensive travel insurance provider that offers trip delay and cancellation insurance, baggage delay coverage, medical coverage and medical evacuation, rental car damage protection, and even COVID-19 coverage among its various policies.

Trawick covers trips for worldwide destinations, including for foreign nationals coming to the U.S.”

What does travel insurance cover?

You’ll find a wide variety of coverage types offered by travel insurance policies. This is true whether you're purchasing a single-trip or annual travel insurance plan. Here are some common types you can expect to find:

Accidental death insurance .

Baggage delay and lost luggage insurance .

Cancel for Any Reason insurance .

Emergency evacuation insurance .

Medical insurance .

Rental car insurance .

Trip cancellation insurance .

Trip interruption insurance .

How to choose the best annual travel insurance policy

While we’ve highlighted some of the best annual travel insurance companies, the truth is that the best plan for you isn’t going to be the best plan for someone else. If you’re interested in buying annual travel insurance, you’ll want to collect a variety of quotes to see which policy best fits your needs.

This may mean opting for a plan that covers pre-existing conditions or one that specifically includes high-risk activities. Or, if you’re in a country where health care is notoriously expensive, you may want to choose a policy with higher maximums.

Many credit cards come with complimentary travel insurance .

Whatever the case, do your research first and review all the plan details before making your purchase.

» Learn more: How to find the best travel insurance

If you want to buy annual travel insurance

Annual travel insurance can be a great option if you’re often out of town. With such a wide range of policies available, selecting a plan that fits your needs is easy. We’ve done some of the work for you by choosing the best annual travel insurance companies, all of which made the top of the list for their cost, customizability, types of coverage and plan maximums.

Like any travel insurance policy, the cost of your plan is going to vary. Factors that may affect the cost of your annual travel insurance include your age, where you’re going, how long you’ll be traveling, your policy maximums and whether preexisting conditions are included.

Although not all travel insurance providers offer annual travel insurance, many of them do. We’ve gathered together the five best, including Allianz Travel, World Nomads, Seven Corners, IMG and Trawick International.

How to maximize your rewards

You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2024 , including those best for:

Flexibility, point transfers and a large bonus: Chase Sapphire Preferred® Card

No annual fee: Bank of America® Travel Rewards credit card

Flat-rate travel rewards: Capital One Venture Rewards Credit Card

Bonus travel rewards and high-end perks: Chase Sapphire Reserve®

Luxury perks: The Platinum Card® from American Express

Business travelers: Ink Business Preferred® Credit Card

on Chase's website

1x-10x Earn 5x total points on flights and 10x total points on hotels and car rentals when you purchase travel through Chase Travel℠ immediately after the first $300 is spent on travel purchases annually. Earn 3x points on other travel and dining & 1 point per $1 spent on all other purchases.

60,000 Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $900 toward travel when you redeem through Chase Travel℠.

1x-5x 5x on travel purchased through Chase Travel℠, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases.

60,000 Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 when you redeem through Chase Travel℠.

1x-2x Earn 2X points on Southwest® purchases. Earn 2X points on local transit and commuting, including rideshare. Earn 2X points on internet, cable, and phone services, and select streaming. Earn 1X points on all other purchases.

50,000 Earn 50,000 bonus points after spending $1,000 on purchases in the first 3 months from account opening.

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Is travel insurance worth it?

The right policy can protect your wallet, your belongings and your peace of mind..

Terms apply to American Express benefits and offers. Visit americanexpress.com to learn more.

You might have planned your next vacation, but consider travel insurance before you start packing. A comprehensive policy can protect you if the unexpected happens before or during your trip.

"Travel insurance is often an overlooked investment until the unforeseen happens," says Beth Godlin, president of Aon Affinity Travel Practice . "It's designed to give travelers peace of mind and financial protection against travel risks."

A policy doesn't have to be expensive, according to Godlin, and it can add a layer of protection and security.

Getting travel insurance

How do i get travel insurance, what does travel insurance cover, how much does travel insurance cost.

• Bottom line

There are many options in the travel insurance marketplace: Aggregator site Squaremouth lets you get price quotes from different carriers and, because it receives a commission from the insurance companies on its site, users aren't charged any additional fees.

Allianz has both single-trip and annual plans, with a Cancel For Any Reason (CFAR) policy that reimburses up to 80% of prepaid, non-refundable expenses — more than most similar plans on the market.

In addition to trip cancellation, Allianz's popular OneTrip Prime plan includes travel interruption, emergency medical care and emergency transportation. Children 17 and under are covered for free when traveling with a parent or grandparent.

AIG's Travel Guard® plans are great if you need to customize your coverage: The mid-range Travel Guard Preferred plan pays out 100% for trip cancellation and 150% for trip interruption, with up to $50,000 in coverage for medical expenses and up to $500,000 for emergency evacuation. There's even a payout of up to $1,000 if you miss your connection.

Travel Guard® Travel Insurance

The best way to estimate your costs is to request a quote

Policy highlights

Travel Guard offers a variety of plans to suit travel ranging from road trips to long cruises. For air travelers, Travel Guard can help assist with tracking baggage or covering lost or delayed baggage.

24/7 assistance available

If you're booking a trip with an aggregator site like Expedia , review the details of any travel policy that's offered. Plans are usually based on the elements of the trip (hotel, flight, rental car, etc.) and can differ every time you book.

Travel insurance typically costs between 4 and 10% of the overall price tag for your trip. The cost can vary:

• Plans with higher limits and more optional coverage cost more.
• A plan with a CFAR benefit can cost up to 40% more.
• Older travelers typically pay more because there's more of a likelihood of a claim being filed. 

Whichever plan you choose, read the fine print so you understand what you're paying for.

Travel insurance generally covers your expenses, your belongings and your well-being. When shopping for a policy, look for these benefits:

Trip cancellation

If your trip is canceled for a covered reason, a policy will often reimburse airline tickets, hotel rooms, rental cars, tours, cruises and other prepaid, non-refundable expenses. Covered situations can include illness or injury, the death of a family member or traveling companion, job loss, military deployment and even unplanned jury duty, according to Allianz's Daniel Durazo.

Cancellations can also be covered if a natural disaster, severe weather or airline strike prevents your carrier from getting you to your destination for at least 24 hours.

Cancel For Any Reason (CFAR) plans provide a lot more flexibility and typically reimburse 50% to 75% of your expenses. But they can bump up the cost by about 40%, said Durazo, and policyholders are still usually required to cancel no later than 48 hours before their scheduled departure. 

Trip delay 

Should you experience a hiccup in your plans, your policy can provide some relief: Food, lodging and local transportation are usually covered if a delay is due to severe weather, airline maintenance or civil unrest.

"For a traveler to be eligible, they must be delayed for the minimum amount of time listed on their policy," Squaremouth spokesperson Megan Moncrief said. "Some policies are very lenient and provide benefits for any length delay, while others list a length requirement — usually somewhere between three to 12 hours."

Daily payout limits range from $150 to $250 per traveler, Moncrief said, while the total policy limit can be anywhere from $500 to $2,000. Save any receipts to submit with your reimbursement claim.

Don't miss: The best credit cards with trip delay insurance

Trip interruption

Should you need to cut your trip short due to illness or injury, or if there's a family emergency back home, your policy may reimburse non-refundable expenses you forfeited.

It may also cover the cost of a one-way economy airline ticket home.

Baggage loss

Airlines are required to compensate passengers luggage lost in transit, but a travel insurance policy may have a higher benefit limit, and cover you if your bags, passport or other possessions are lost, damaged or stolen once you've gotten to your destination., The Platinum plan from AXA Assistance USA has a $3,000 benefit limit for lost luggage, well beyond the $1,700 that airlines are required to cover on international flights. AXA has offices in more than 50 countries, with multilingual operators available 24 hours a day to help reschedule flights, book hotels and make other arrangements.

AXA Assistance USA Travel Insurance

AXA Assistance USA offers several travel insurance policies that include travel interruption, trip cancellation, and the option of cancel for any reason (CFAR) coverage.

Travel insurance doesn't cover every loss: Cash is not reimbursable and many policies won't reimburse for expensive jewelry or heirloom items. Read your policy carefully to see what is included.

Medical expenses and emergency evacuation

If you travel within the U.S., your health insurance should cover any illness or injury you sustain. If you're traveling abroad, though, your plan may provide little or no coverage. The right travel insurance should cover doctors' fees and hospital bills, Durazo said. 

The provider can also help coordinate care and ensure you're at a medical facility that's up to U.S. standards.

An emergency medical evacuation can be a major expense, costing anywhere from $15,000 to over $200,000, Durazo added.

If you've spent money on nonrefundable airline tickets, tours and hotels, you could be at a loss if something goes awry. Travel insurance covers numerous scenarios, from a medical emergency to a tropical storm. It could be particularly useful if:

• You've spent a lot on prepaid, non-refundable expenses
• You're traveling internationally where your health insurance won't apply
• You're traveling to a remote area
• Your flight involves multiple connections or destinations

"When deciding if travel insurance is right for you, ask yourself how much you could stand to lose if you had to cancel at the last minute," said Godlin.

If you're not as concerned about risk, your credit card may offer built-in travel protection if you book with that card: Chase Sapphire Preferred® , Southwest Rapid Rewards® Plus Card and the  *American Express® Gold Card all come with trip cancellation and interruption coverage, among other benefits.

*Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply.

Please visit americanexpress.com/benefitsguide for more details.

Underwritten by New Hampshire Insurance Company, an AIG Company.

Chase Sapphire Reserve®

Earn 5X total points on flights and 10X total points on hotels and car rentals when you purchase travel through Chase Travel℠ immediately after the first $300 is spent on travel purchases annually. Earn 3X points on other travel and dining & 1 point per $1 spent on all other purchases plus, 10X points on Lyft rides through March 2025

Welcome bonus

Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $900 toward travel when you redeem through Chase Travel℠.

Regular APR

22.49% - 29.49% variable

Balance transfer fee

5%, minimum $5

Foreign transaction fee

Credit needed.

Terms apply.

Read our Chase Sapphire Reserve® review.

Southwest Rapid Rewards® Plus Credit Card

Earn 2X points on Southwest® purchases, 2X points on local transit and commuting, including rideshare; 2X points on internet, cable and phone services; select streaming. 1X points on all other purchases

Earn 50,000 bonus points after spending $1,000 on purchases in the first 3 months from account opening.

21.49% - 28.49% variable

Foreign transaction fees

Excellent/Good

American Express® Gold Card

4X Membership Rewards® points at Restaurants (plus takeout and delivery in the U.S.) and at U.S. supermarkets (on up to $25,000 per calendar year in purchases, then 1X), 3X points on flights booked directly with airlines or on amextravel.com, 1X points on all other purchases

Earn 60,000 Membership Rewards® points after you spend $6,000 on eligible purchases with your new Card within the first 6 months of Card Membership.

Not applicable

See Pay Over Time APR

See rates and fees , terms apply.

Read our American Express® Gold Card review .

Research your card's travel benefits before making any purchases related to your trip.

Policies vary, but most comprehensive travel insurance plans cover travel cancellation and interruption, baggage loss, medical care and emergency transportation.

While the price for coverage varies, most policies cost between 4% and 10% of the trip's prepaid, non-refundable expenses.

When should I get travel insurance?

It's best to take out a policy within days of making your reservations.

Does travel insurance cover COVID-19?

If you contract COVID-19 before or on your trip, it may be covered by your policy's trip cancellation/interruption benefit . You'll likely have to confirm your test results with a diagnosis from a healthcare provider.

Bottom line 

Travel can be a wonderful experience, but it involves a lot of time, planning and money. Missing a single connection can have a cascade effect that impacts your flight, hotel room, dinner reservations and more. A good travel insurance policy can provide peace of mind so you can focus on your vacation.

Compare and find the best life insurance

Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox.  Sign up here .

Meet our experts

At CNBC Select, we work with experts with specialized knowledge and authority. For this story, we interviewed Beth Godlin, president of Aon, which provides custom travel insurance for tour operators, cruise lines, travel websites and others. We also spoke with former Squaremouth Megan Moncrief and Allianz communications director Daniel Durazo.

Why trust CNBC Select?

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every insurance article is based on rigorous reporting by our team of expert writers and editors . While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

Catch up on CNBC Select's in-depth coverage of  credit cards ,  banking  and  money , and follow us on  TikTok ,  Facebook ,  Instagram  and  Twitter  to stay up to date.

For rates and fees for the American Express® Gold Card , click here .

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Atlas & Boots

The UK's most popular outdoor travel blog

10 tips for buying annual travel insurance

A comprehensive guide to buying annual travel insurance including what to look out for, the pitfalls to avoid and the questions to ask

Back in 2014, British adrenaline junkie Ben Cornick jumped out of a plane in Fiji at 12,000 feet. There was no way to know at the moment he leapt out of the aircraft that his parachute wouldn’t work properly and that he would plummet to Earth, breaking his leg in three places and shattering his elbow.

It gets worse: Ben hadn’t bought travel insurance and had to pay £20,000 upfront for treatment to save his leg. His parents pulled together their life savings and readied to sell their house.

But then there was an unlikely twist: following media coverage of Ben’s predicament, complete strangers donated money to pay his medical bills, massively reducing the cost to his parents. Thankfully, this case has a happy ending, but we dare say we wouldn’t all be so lucky.

The purpose of this story isn’t to scaremonger; it’s to illustrate that accidents can happen even if, like Ben and skydiving, you have done something a thousand times with no injury. The answer to ‘should I get travel insurance?’ is yes – doubly so if you’re going on a long-term trip. Here’s what to bear in mind when buying annual travel insurance.

1. Start saving early

Annual travel insurance for our round-the-world trip cost £400 for two people, a hefty amount given that we were scrimping and saving for a year to make the trip happen. We bought our insurance very close to our departure date which meant the price tag seriously stung.

To avoid this pain, factor in the cost as early as possible and start saving immediately. This way, you won’t be tempted to forego it altogether.

2. Don’t automatically opt for the cheapest package

It’s tempting, we know. On our past travels, we were covered under the cheapest annual policy. With an entire year of continuous travel ahead of us including lots of outdoor activities, however, we wanted to make sure we would be covered adequately. Needless to say, the cheapest option didn’t quite cut it.

We spent a long time checking individual websites aimed at independent travellers. Eventually, we opted for a more expensive policy, which paid off when we broke our GoPro on a dive in Tonga.

Any good policy should cover accidental loss and damage, as well as medical expenses of £2m for Europe and £5m worldwide. Cancellation should be around £3,000 or at least the cost of the holiday, and personal liability should be around £1m or more.

3. Be aware of date restrictions

Make sure you understand any restrictions and conditions around the dates of your policy. Be particularly aware of the following.

• Most policies won’t cover you if you have already started your trip, so buy before you go.
• If your policy starts when you leave for your trip in say May and you buy your policy in January, will you be covered if your trip is cancelled in February? Many companies don’t make this clear so make sure you ask explicitly.
• If you are backpacking long-term, make sure your policy covers one long period of continuous travel, not multiple short trips.
• If you buy annual travel insurance for one big trip, make sure it remains valid if you go home for a short while and then restart your travels. Some policies stop when you get home, but this isn’t always made clear.

4. Don’t buy from your tour company or cruise line

If you’re booking via a travel agency or tour company, don’t be tempted to buy their own travel insurance. If the company finds itself in financial trouble (e.g. bankruptcy), you may find that you are no longer covered. Buy from a dedicated insurer instead.

5. Ensure it covers the basics

Basic insurance should cover trip cancellation and curtailment, medical emergency, baggage, and flights – and of course, apply to the country or countries you will be visiting. You may also need to consider the following:

• Emergency evacuation: This is sensible if you’re going hiking, mountaineering or staying somewhere isolated.
• Medical repatriation: Many policies offer medical treatment but not transport back to your home.
• Winter or extreme sports: Even if your policy covers winter sports, double-check your specific needs. Some policies won’t cover off-piste skiing at all or will limit your total number of ski days. Others may specify that you need to take a guide on your climbing expeditions.
• Scheduled airline failure: If your airline goes bust, insurance will only cover the costs if your policy covers “scheduled airline failure”, so check for this.

6. Avoid the following pitfalls

• Excess: Does your excess (the amount you have to pay towards a claim) pertain to each claim or each section of your policy? The former means you only pay it once per claim. The latter could mean that if your bag gets stolen with some jewellery, a wallet and a phone in it, you may have to pay the excess three times if those items are in different sections on your policy.
• Caps on losses: Be aware that there are often caps on losses, particularly on electronic items. This means that if you lose a £1,000 laptop but the cap on electronics is £500, the maximum you will receive is £500. If necessary, look into specialist coverage for your electronics.
• Special circumstances around travelling with children: If you are travelling with kids, be aware that many policies don’t cover them if they don’t live with you (i.e. if you are divorced or separated and live somewhere else). Double-check this if applicable.

7. Be aware of exemptions

As you may expect, there are several exemptions which may result in the rejection of your claim. Be aware of the following.

• Cruises: Many annual travel insurance policies don’t include cruises so do check this if you think you might end up on one ( like we did! ).
• Alcohol/drugs: Policies do not usually cover alcohol- or drug-related incidents so be careful.
• Unstated pre-existing medical conditions: If you haven’t been completely upfront about any/all your pre-existing medical conditions, you could nullify your entire policy. This includes minor ailments like asthma. If in doubt, ask the insurer.
• Specific locations: Obviously, you need to check that your policy covers every country you will be visiting. Make sure you double-check that you’re covered any time you decide to go to an unplanned country just in case it will void your coverage.
• Reckless behaviour: If an incident happened as a result of your reckless behaviour, you could find yourself out of pocket. There is no objective definition of “reckless” behaviour but, in essence, it’s something a reasonable person would not partake in. (I’m not sure if sitting on the rim of an active volcano counts or not…)

8. Have a look at the claims process

Before you book your annual travel insurance policy, have a look at the claims process. Can it be filed online? Is it relatively straightforward or does it involve multiple long-distance phone calls? (On this note: make sure you keep your receipts.)

Finally, if you are a victim of a crime, make sure you go through official legal procedures (file a complaint and obtain a crime reference number). In essence, the more paperwork you have to support your claim, the better chance you’ll have of being reimbursed.

9. Check Trustpilot ratings

The review website Trustpilot provides an at-a-glance indication of the quality for different products and services. While it’s true that online reviews can be gamed, the overall rating tends to be reliable. We advise opting for an annual travel insurance provider that has a star rating of 4 or above.

10. We recommend

We have used a number of travel insurance providers over the years and are now covered by SafetyWing  which offers a range of premium  travel medical insurance  built specifically for digital nomads who have health insurance coverage in their home country but need coverage abroad.

SafetyWing’s  Nomad Insurance  covers travel delays, lost checked luggage, emergency response, natural disasters and personal liability as well as medical assistance up to $250,000 USD. It can be purchased while already abroad, covers home trip visits and operates like a monthly subscription.

Lead image: V. Belov/Shutterstock

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Money latest: Do solar panels work in Britain's wet and cloudy climate?

George Frost, UK manager for sustainable energy advice firm iChoosr, talks to us about how effective solar panels really are in the UK. Listen to the latest Sky News Daily podcast about inflation as you scroll.

Friday 19 April 2024 09:59, UK

• Do solar panels work in Britain's wet and cloudy climate?
• There's £500m in unclaimed Gift Aid - could you be eligible?
• Ketchup swaps that could eliminate tablespoons of sugar from your diet
• Drivers warned 'psychological shock' coming from petrol prices

Essential reads

• Spotlight on unpaid carers: 'You can't afford to feel': The woman who cares for her daughter, son and husband
• Ian King analysis: Why an interest rate cut may not come as soon as you think
• Basically… How to improve your credit score
• Money Problem: My boss ruined end of maternity leave with ultimatum - what are my rights?

The British public donated some £13.9bn to charity last year, but higher earners who give to their chosen causes could be missing out on a tax break. 

"Many may be missing out on the tax perks of giving to charity, which can help to reduce their tax bill and save them from tax traps," Charlene Young, pensions and savings expert at AJ Bell, said. 

There is some £500m of unclaimed Gift Aid rebates - which you could be eligible for - according to data seen by AJ Bell. 

In order to get to the bottom of this, we need an understanding of Gift Aid. 

"Gift Aid is a tax incentive that gives a top up on donations from UK taxpayers to a UK registered charity or community amateur sports clubs (CASC)," Charlene explains. 

Within the scheme, the government tops up the charity donation by 25% - turning a £100 donation into £125 for the charity or CASC. 

"But there’s a tax break on offer for higher and additional rate taxpayers too - they can claim up to 20% or 25% on their donations," Charlene adds. 

Not only does the scheme mean charities can access more money at no extra cost - higher band taxpayers can claim some cash back. 

This table shows how much you can claim back...

"Claims are usually made via a self-assessment tax return, but you can ask HMRC for a P810 form to fill in if you don’t normally file a return. You can also backdate claims for up to four years, so it is worth looking into this as soon as possible," Charlene says. 

Although 94% of higher earners donating to charity have heard about Gift Aid, only 52% are aware they could claim a tax rebate on their donations, according to HMRC data. 

That leaves expected unclaimed rebates at around £500m. 

Geoff, a higher rate UK taxpayer, pays £780 in charitable donations over the course of a year. 

Gift aid tops this up to £975.

Geoff is eligible to claim back £195 (20% of £975) in tax relief from HMRC via self-assessment, or by contacting HMRC directly. 

In total, this means the charity has received £975 - but it has only cost Geoff £585. 

Avoiding tax traps

"If you're caught by tax traps, gift aid could help you lower your tax bill and put money towards good causes," Charlene says. 

"You might be a parent who has gone over the £50,000 high income child benefit charge, meaning you'd start to lose child benefit [HICBC].

"Or if your earnings have breached £100,000 you start to lose your tax-free Personal Allowance at a rate of £1 for every £2, a whopping effective rate of tax of 60% on earnings between £100,000 and £125,140.

"Making a charity donation and claiming Gift Aid means the full value of the donation [what you pay plus the government top up] is deducted from the income that would otherwise count towards the £100,000 limit [or £50,000 for HICBC]."

By  James Sillars , business reporter

The market reaction to Israel's attack on Iran is muted so far.

While Brent crude oil rose by 2% in response initially, it is currently just over 1% up on the day at $88 a barrel.

That is below where it started the week after Iran had launched its drone and missile strikes on Israel.

The future direction will probably depend on how Iran chooses to respond to events overnight.

Stock markets are also feeling some strain and, being Friday, we could see a rush to protect positions over the weekend later in the day.

Japan's Nikkei was 2.6% down though the Hang Seng was just 0.9% lower.

In Europe, the reaction was similar to that seen in Hong Kong.

The FTSE 100 fell 0.4% at the open - with small gains in energy stocks offsetting some of the wider hit to sentiment from events in the Middle East.

Travel-related stocks were seeing some of the worst pain due to the threat of disruption.

British Airways owner IAG shed 3.5% while easyJet was 2.3% off and Ryanair not far behind that figure.

By Ollie Cooper, Money team

It can be hard to balance getting nutritious foods that make you feel good without emptying your wallet.

In this series every Friday, we're trying to find the cheapest ways to identify the healthiest options in the supermarket.

We've asked  Sunna Van Kampen,  founder of  Tonic Health ,  who went viral on social media for reviewing supermarket products in the search of healthier choices, for his input. 

The series does not aim to identify the outright healthiest option, but to help you get better nutritional value for as little money as possible.

Today we're looking at ketchup - which contains a surprising amount of sugar. 

What's the worry with sugar?

"Reducing added sugars in your diet can lead to significant health benefits, including weight loss and decreased risk of heart disease," Sunna says. 

"But fear not, ketchup connoisseurs: there's a way to enjoy your sauce and look after your health too."

How much sugar? 

The average bottle of ketchup has around 4g of sugar per tablespoon. 

If you're having a generous dollop of ketchup three times a week, you're adding more than 600g of sugar to your diet each year from one condiment. 

"That's a whole lot of sweet for something that's supposed to be savoury," Sunna says. 

"Another way to look at it is that you're having a teaspoon of sugar drizzled over your French fries - it feels wrong, doesn't it?"

The good news is there's plenty of options.

Avoiding premium ketchups can save your wallet and your sugar intake - they tend to up sugar content by 35% to more than 30g per 100g.

A standard bottle of Heinz contains 22.8g of sugar per 100g.

"Without getting into the taste debate, Heinz's rival Hellman's comes up trumps for your health by lowering the sugar content to 18g per 100g," Sunna says. 

Heinz has created two lower-sugar versions: a 50% less sugar option (at 11g per 100g) and Heinz's No Added Sugar & Salt (4.4g of sugar per 100g).

"But watch out here," Sunna says, "as they do add artificial sweeteners in their place (sucralose)". 

In his view, there are two newer challenger brands that deserve a mention as they cut sugar without the artificial additives. 

"Dr Wills Ketchup using dates instead of sugar (15g per 100g) and Hunter & Gather keep the sweet stuff out entirely (6g per 100g). 

So, he says, there is "plenty to choose from to suite your taste buds and health needs".

What does that look like over time?

Making small changes for your health can build up to a big impact over the long term. 

"Going from standard Heinz to the brand's no sugar option will save you more than 500g of sugar a year in your diet," Sunna says. 

What's the cost? 

"Surprisingly, opting for a healthier ketchup doesn't mean squeezing your wallet dry," Sunna says. 

A bottle of Heinz No Added Sugar & Salt costs around £0.80 per 100g and is the most expensive.

The 50% less sugar version is cheaper at £0.54 per 100g. 

That's only 4% more than the standard, more sugary version, which costs £0.52 per 100g. 

"This way you'll save 32% on the price of your ketchup (compared with no sugar) and 50% of the sugar content for your health - that's a win-win," Sunna says. 

"In the grand scheme of dietary changes, switching ketchup varieties might seem small. But it's these little tweaks that can add up to a big difference in your health."

The nutritionist's view -  from  Dr Laura Brown , senior lecturer in nutrition, food and health sciences at Teesside University

"I would say that yes, they are correct in that the focus should be health over money and the reduced sugar version does not make too much of a difference. 

"Also, there is the option of making your own ketchup too, in which you could manipulate the ingredients to add more natural flavours that will reduce the need for the added sugar - provided it is consumed within a shorter space of time."

Read more from our series... 

By Bhvishya Patel, Money team

This week, we've been speaking to some of Britain's struggling unpaid carers, hearing at times heart-breaking accounts of their physical, emotional and financial struggles.

In our final instalment in the series, a woman who cares for her daughter, son and husband says it is a "lonely job" and you often feel "looked down on" as she urges the government to "look at the bigger picture" when it came to help.

"I care for three people but I'm allowed to get Carer's Allowance once. The allowance is deducted from my Universal Credit so in effect I do not get paid for caring at all." Suzanne Buckner, unpaid carer

Suzanne's daughter Charlotte, or Lottie as her mother and father Mark call her, was three when she was diagnosed with a neuroblastoma, a rare cancer that affects children and develops in early nerve cells, in 2010.

Her gruelling treatment left her with a number of healthcare problems, including the development of three benign tumours in her liver, non-autoimmune type 1, type 2 and type 3 diabetes and asplenia.

Charlotte, now 17, is also deaf and has severe back problems due to discs growing into her vertebrae.

"My daughter was told by her oncologist in December they didn't actually expect her to survive," Suzanne, 56, says.

Suzanne is also a carer for her son, 23, who has multiple complex conditions and her husband, 62, who has mental health conditions.

"It's an eclectic collection - one minute I'm a mental health nurse, then I'm dealing with behavioural problems and then it's just classic nurse," she says.

Suzanne receives universal credit of around £972 a month after her carer's allowance is deducted.

She says the carer's allowance earnings limit, set at £139 a week, means carers like her are "caught in this trap" where they can't earn above the limit for fear of losing their benefit money.

"I care for three people but I'm allowed to get carer's allowance once. The allowance is deducted from my universal credit so in effect I do not get paid for caring at all," she says.

"It's ridiculous because if I handed my family over to the state, can you imagine how much money it would cost?

"I sometimes think central government does not have the ability to calculate or look at the bigger picture."

Recently, Suzanne got "quite poorly" and was told to go to A&E after she was unable to get an appointment with her GP.

"I thought 'I can't go to A&E I've got to look after my family'. I think that's another area that's not looked at - the health and wellbeing of carers. It's a lonely job," she says.

"Even though I was sick, I was making sure Lottie was having her injections and medicines. You can't afford to feel.

"Emotionally it is hard because sometimes you can't fix the problem. There isn't a magic solution and you can't make a phone call.

"It doesn't matter to a degree how much money you've got, it  isn't going to go away. If someone is poorly, they are poorly."

Suzanne used to run several companies, including an advertising agency, before becoming a carer for her family and now does telecoms regulation consultancy work when she can.

Holding down a 9-5 job is "not possible for most carers".

"Lottie getting cancer taught me so much about life - do not plan," she says.

"If she had to go to hospital today that means I have to change all the tutors she's having and it can happen overnight.

"Having a child with cancer is even more of a lonely thing because it's quite a rare thing. If she gets sick, life just turns upside down."

After undergoing chemotherapy, Lottie was left with a low blood temperature and therefore keeping the house warm is important, Suzanne says, which increases heating costs.

The costs can go up further if Charlotte needs to go to hospital as this means trips "all over the country" to hospitals in Birmingham, the John Radcliffe Hospital in Oxford and Great Ormond Street Hospital in London, increasing fuel and food costs.

'Less of a citizen'

Suzanne says there is "absolutely" a pressure on her finances and if it were not for the inheritance her mother left her, she "wouldn't be living".

"Both my husband's parents are dead and my parents are dead. I don't have siblings that live close by so I don't have any support," she says.

"I think the problem is, unless you've walked in somebody's shoes, you really don't understand."

Suzanne says there are some things central and local government could do to help, such as giving personal budgets through direct payments, which would allow carers to choose the support and help they needed.

"Personally I feel you get looked down on. People think you're only a carer, you get benefits, you're less of a citizen - that really annoys me," she says.

"I think the benefits system doesn't work. I'm not suggesting that all carers in the UK should be paid a certain amount, but they should be paid equitably so that people don't get to the point mentally where they say 'I can't do this anymore'. 

"There need to be some serious, high-level debates and they need to involve carers in those debates. 

"The government need to look at how much money they are wasting in the care system by doing the wrong things."

Speaking of her daughter's battles, Suzanne adds: " I don't know how she copes - I think she's an inspiration.

"She has to be pulled and tugged by doctors and have test after test, and she tolerates it all. Sometimes when I'm watching her have these tests I think to myself 'I don't know how she does it'". 

Charity calls for review

Helen Walker, chief executive at Carers UK, says it is in the state's interest to support unpaid carers because "if a carer goes down then the state has to look after two people".

If you have to give up work to care, she says, "you are going to find yourself spiralling into poverty".

"Carer's allowance hasn't had a fundamental review for years so we would like a review looking at who is eligible for it, how it works and an increase to the amount," she adds.

"And also there needs to be an increase to the amount of hours you can work while caring.

"Social care is underfunded so it needs some real investment in order for unpaid carers to be able to care safely and well.

"What many carers will say is they need a break. It's not that they don't want to care, it's that they are exhausted. They are at breaking point."

A government spokesperson said: "Unpaid carers play a vital role in the lives of their family and friends, which is why from April we're boosting carer's allowance meaning carers receive an extra £1,500 a year compared to 2010.

"Those in low income households may also be eligible for additional financial support such as universal credit."

You can read the previous parts of our series here:

We've all heard consumer advice that's repeated so often it almost becomes cliché. So, every Friday the Money team will get to the bottom of a different "fact" and decide whether it's a myth or must.

This week it is...

'Solar panels in the UK are pointless given the weather'

For this one, we've got the help of  George Frost , UK manager for sustainable energy advice firm iChoosr. 

"With cloudy and colder days in the winter, it is natural for people to think that solar energy may not be as effective in this country - but this is simply false," he says. 

Let's dive into it... 

So how do solar photovoltaic (PV) systems work?

George explains: "Solar panels are composed of PV cells, which contain electrons that are energised upon contact with light particles, or photons. 

"This energy is then directly converted into an electric current to generate electricity."

In simple terms: solar panels rely on the sun's light and not its heat  to generate energy. 

Like most electrical equipment, solar panels perform better in colder temperatures, as excessive heat can reduce efficiency. 

"Solar panels will generate more energy on a crisp and chilly sunny day than on a hot, sunny day," George says. 

The issue really lies not with temperature but with cloud cover.

Solar panels receive less sunlight if there is a high density of clouds. 

Data suggests the energy generated drops significantly under heavy cloud cover, but George says that even on less clear and bright days, solar panels can still generate a "substantial" amount. 

Battery storage can help make up for effects of cloud cover. 

"By installing a battery alongside solar panels, any excess energy generated can be stored and utilised later in the day when the panels are no longer generating due to the absence of sunlight," George says.  

"Although the winter months have fewer daylight hours, it's important to note that solar PV systems do not completely shut down on shorter and darker days."

The numbers

The ideal temperature for solar panel efficiency is between 1C and 20C. 

National Energy Action data shows that the average solar panel can generate up to 3kWh of electricity on a sunny day. 

A mildly cloudy day will produce 0.55kWh and a heavily overcast day 0.24 kWh, according to the Ecoexperts.

The typical UK solar panel system (3-4kW system, typically made up of eight to 12 panels) produces between 2,450 and 3,000+ kWh a year, depending on orientation, location and weather conditions - according to Solar Together data.

The average British home uses around 2,700kWh of electricity a year, Ofwat estimates. 

Myth or must?

It's a myth that British solar panels are pointless - and data shows the average panel system could in theory power your home almost entirely. 

Solar Together caveats that by saying: "In practice, it's difficult for the average homeowner to install enough solar panels to power their entire home. 

"They can, though, generate enough energy to power household appliances such as your TV and fridge-freezer."

Consider this myth busted - and think of the green impact too! 

The Duchess of Sussex seems to be soft-launching the first product from her upcoming lifestyle brand. 

Influencers and friends of Meghan have been posting pictures of American Riviera Orchard's debut item - strawberry jam - in recent days. 

Parenting campaigner Kelly McKee Zajfen has become the latest to promote the jar, posting an image of it in a basket of lemons and flowers on Instagram. 

The Duchess reportedly sent out 50 jam jars to online influencers. 

Los Angeles-based fashion designer Tracy Robbins shared a photo of a jar - marked 17 out of 50 - earlier this week. 

Megan has already launched the American Riviera Orchard website, but it does not feature any products and simply invites visitors to join a waiting list. 

An Instagram profile has also been set up for the business, but just features several posts making up its gold logo. 

"By Meghan, The Duchess of Sussex⁣⁣⁣. Established 2024", is all the description says. 

You can read more about when we first saw a glimpse of the product here ...

Barristers and judges have the biggest gender pay gap in the UK, a study has shown.

Women in the profession earn just over 29% less than their male counterparts - around £8.31 an hour. 

That's according to ONS data analysed by Claims.co.uk. 

Financial managers and directors were found to have the second-biggest difference, with women paid approximately £11.56 less an hour than men in the same occupation. 

"Perhaps in 2024, studies like this will raise awareness of the gender pay gap and precipitate change in these industries, starting with pay reviews," Claims.co.uk said.

You can see the 10 jobs with the biggest pay gaps below...

As the season for high pollen count is upon us, anyone who suffers from hay fever will be thinking about stocking up on their medication.

But this can mean the pocket takes a hit.

Branded tablets from pharmacies can set buyers back quite a bit, with Clarityn allergy relief costing £10.99 for 30 tablets . Piriteze is another common brand, priced at  £11.55 for 30 tablets .

But most of these medications have identical properties, regardless of brand.

It's important to look out for the "active" ingredients - and then buy the cheapest option. 

These include loratadine and cetirizine hydrochloride. 

Supermarkets and discount stores can provide cheaper alternatives to the brand names. 

Poundstretcher, for example, sells 30 loratadine tablets for 79p. 

Supermarkets will often sell the branded versions alongside their own cheaper equivalents - so compare the ingredients before deciding which to go for. 

Here are some examples:

• Asda: £2.50 for cheapest generic v £6.50 for cheapest Clarityn tablets
• Boots: £5.99 for cheapest generic v £11.55 for Piriteze, Zirtek or branded equivalent
• Boots: £2.75 for cheapest generic v £10.99 for Clarityn tablets
• Sainsbury’s: £2.50 for cheapest generic v £11.10 for Clarityn tablets
• Tesco: £2.95 for cheapest generic v £11 for Piriteze, Zirtek or branded equivalent
• Waitrose: £3.25 for cheapest generic v £11.85 for Clarityn tablets

There are no cheaper equivalent options for Benadryl tablets, but Amazon offers cheaper deals of £7.20 or £6.48 with Prime vs a standard price of around £10 from supermarkets.

Remember, certain options could seem cheaper, such as an option of 90p for 10 tablets vs £1 for 10 one-a-day tablets.

However, you'll need to keep taking the first option throughout the day, with the second option lasting you much longer.

You should only buy medications from legitimate pharmacies and shops, as they must adhere to certain standards and inspections.

By Mickey Carroll, science and technology reporter 

If you had a great meal out, you'd probably leave a tip. Why don't you tip the people that make your video games too? 

That's the suggestion from former game studio president Mike Ybarra. He sparked a debate on X when he posted the idea he'd been thinking about "for a while".

"When I beat a game, there are some that just leave me in awe of how amazing the experience was. 

"I've often thought 'I wish I could give these folks another $10 or $20' because it was worth more than my initial $70 and they didn't try to nickel and dime me every second," he posted.

His idea was a flop.  

A lot of the more than 1,700 replies asked why games studios didn't just pay their developers properly, at a time when the industry is in crisis. 

"Maybe it's time companies start giving salaries and a bonus structure adequate to all their employees," posted @leqvist.

Game developers are facing mass redundancies. ( You can read more about that here .)

In the Past two years, more than 19,000 people have lost their jobs and just four months into 2024, another 8,000 have gone. 

Only yesterday, an estimated 600 redundancies were announced by Grand Theft Auto-6 publisher Take-Two, which could include jobs at Scotland’s Rockstar Games UK.

The other criticism that cropped up a lot was that games are pretty expensive anyway and should just be… good?

"A horrible idea. The game should be an amazing experience for $70! Paying extra for a 'great game' means that you are settling for a **** or mediocre game normally," posted @LinuxMostly. 

The average price for a boxed video game in the UK is now £35.70, according to the Entertainment and Retail Association yearbook.

After posting his idea, Mr Ybarra clearly went about his life, posting afterwards: "Whoever runs SteamDB [a database of everything on Steam], I tip my hat to you."

"Maybe you should tip them," came the reply.

Crisis-hit Boeing has rushed to defend itself from fresh whistleblower allegations of poor practice as the airline grapples its latest safety crisis.

A Congressional investigation heard evidence yesterday on the safety culture and manufacturing standards at the company - rocked in January by a mid-air scare that saw an Alaska Airlines 737 MAX 9 flight suffer a panel blowout.

One Boeing quality engineer, Sam Salehpour, told members of a Senate subcommittee that Boeing was taking shortcuts to bolster production levels that could lead to jetliners breaking apart.

Read more on this story here ...

Almost one million private renters in England have been handed no-fault evictions since the Conservative government promised to abolish them, new data has shown.

Research by YouGov on behalf of homelessness charity Shelter - and shared exclusively with Sky News - showed that since April 2019 943,000 people had been given Section 21 notices, the equivalent of more than 500 renters every day.

The figures also showed unwanted moves were costing private renters in England £550m a year, with 830,000 people having to move in the past 12 months alone due to either their fixed tenancies coming to an end, being priced out by rent increases or being served with a Section 21.

You can read more on our political reporter Jennifer Scott's exclusive here ...

The Co-operative Bank will this week move a step closer to regaining its mutual status when it announces that it has struck a £780m deal to be bought by the Coventry Building Society.

Sky News has learnt that the two organisations are expected to announce as early as today that they have reached agreement on the terms of a transaction.

Insiders said the cash price to be paid by the Coventry would be close to £800m.

Read more on this story here ... 

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I visit Universal Orlando several times a year. Here are my top 10 tips for first-timers.

I’ll never forget walking out of Universal Islands of Adventure in 2022, drenched from head to toe after riding Popeye & Bluto's Bilge-Rat Barge . 

It was my first trip back to Universal Orlando Resort in years, and I learned some things the hard way, which I gladly shared with fellow travelers, hoping that they’d avoid my mistakes .

Since then, I’ve had the opportunity to visit the Florida resort several times a year. And while I stand by my earlier tips, I’ve learned a few others.

Here are my top tips for first-timers visiting Universal Orlando.

1.  Stay on property

From RV parks to vacation rentals, there’s no shortage of places to stay in Central Florida, but it can pay to stay on property when visiting Universal Orlando. Not only are prices comparable to off-property hotels with Endless Summer Surfside and Dockside starting at $99 a night, but all of Universal’s resort hotels offer 30 minutes of early entry to select parks, which vary depending on time of year. 

They also provide free resort transportation, so you can get back to your room fairly quickly after a long park day or for a midday break. That free transportation can be clutch in the mornings, particularly at pricier Loews Sapphire Falls , Loews Royal Pacific , Loews Portofino Bay , and Hard Rock Hotel , which offer water taxis that drop you off closer to the parks than you can get arriving by car or bus. Cabana Bay Beach Resort and Aventura Hotel guests can walk over to Sapphire Falls for water taxis, but the extra time and steps added may make it not worth skipping the resort shuttle bus.

Walking paths are also available to the parks from every resort hotel except the Endless Summer ones. Cabana Bay guests also have a dedicated walking path to Universal’s Volcano Bay water park.

Guests staying at Royal Pacific, Portofino Bay and Hard Rock also get free Universal Express Passes , which dramatically cut waits for most rides and normally start at $79.99 per person. Free package delivery is also available to all resort hotels, if guests don’t want to lug park purchases around all day.

Epic Universe details revealed: What's coming to Universal Orlando next year

2. Buy a popcorn bucket

Snacking at the parks can get expensive. Guests are welcome to bring their own snacks, but there’s one crowd-pleaser that won’t break the bank. 

A plain popcorn bucket costs a little over $12, and you can keep getting refills throughout your trip. Refills cost around $2 each, making popcorn among the cheapest, most shareable snacks on property. On our last trip, my family and I got multiple refills for the price of one pretzel with cheese dip.

3.  Bring a light, refillable water bottle

Staying hydrated is always important, particularly on hot park days. 

You can fill water bottles with free ice-cold water at any of the many Coca-Cola Freestyle machines across the property. Cups of ice water are also available for free anywhere dispensed soft drinks are sold.

Leave big double-walled stainless steel tumblers at home. Not only will they feel heavy, carrying them around all the day, but if they aren’t leak-proof, they’ll make a mess when you tip them on their sides to fit in lockers for thrill rides.

4. Bring a medium-sized bag to carry your stuff

Numerous attractions, from Jurassic World VelociCoaster to Men in Black Alien Attack , require guests to store loose articles in lockers provided for the duration of the ride. 

I previously recommended keeping most of your things together to avoid having to empty every pocket each time. That’s still true, but I want to add a caveat on size. 

The free lockers aren’t very big. They can fit a Loungefly-style mini backpack or empty popcorn bucket, if you squish them down, but they’re not large enough for packed full-size backpacks. Keep that in mind unless you want to pay for larger lockers.

5. Bring ponchos

Ponchos don’t take a lot of space and can save you from getting soaked like me on Popeye & Bluto's Bilge-Rat Barge, Dudley Do-Right’s Rip Saw Falls , and Jurassic Park River Adventure .

Even if you skip water rides, ponchos are good to keep on hand for rainy park days.

6. Use single-rider lines 

Many attractions have a single-rider lane. If you’re traveling alone or don’t mind your party being split up, you can save time using the single-rider lane, if it’s open. They’re not always offered.

It doesn’t guarantee a short wait, but it’s usually shorter. On our latest trip, my middle schooler still waited at least 45 minutes for The Incredible Hulk Coaster and an hour for Hollywood Rip Ride Rockit . That was about as long as the regular standby wait for Hulk but shorter than the standby wait for Rip Ride Rockit.

The following attractions have single-rider lanes, though availability varies.

Universal Studios Florida

• E.T. Adventure.
• Harry Potter and the Escape from Gringotts.
• Hollywood Rip Ride Rockit.
• Men in Black Alien Attack.
• Revenge of the Mummy.
• The Simpsons Ride.
• Transformers: The Ride-3D.

Universal Islands of Adventure

• Doctor Doom's Fearfall.
• Dudley Do-Right's Ripsaw Falls.
• Hagrid's Magical Creatures Motorbike Adventure.
• Harry Potter and the Forbidden Journey.
• Jurassic Park River Adventure.
• Jurassic World VelociCoaster.
• The Amazing Adventures of Spider-Man.
• The Incredible Hulk Coaster.

7. Use child swap 

If someone in your party doesn’t meet ride requirements for an attraction or simply wants to sit it out, you can ask for a child swap. It’s particularly helpful for families with young children because it allows parents and caregivers to take turns riding the ride and staying with whoever is sitting it out.

On our most recent trip, my youngest didn’t want to ride Hagrid’s Magical Creatures Motorbike Adventure , so we all waited in line together, but then she and I peeled off to a designated waiting room while my middle schooler and mother-in-law went on the ride. When they were done, my mother-in-law stayed with my youngest while I went on the ride. My middle schooler lucked out, getting to ride it twice.

Not all attractions have waiting rooms, but they all offer swaps. Just let team members know you need one.

8. Take breaks

Theme parks can be exhausting. Not only are you on your feet all day, but they can be loud, crowded and overstimulating. 

When possible, I like to plan for at least one sit-down meal in the day. This way, I can take my time and recuperate in air conditioning away from crowds. I’ll typically splurge on one table-service meal, but there are several medium-priced, quick-service restaurants across both theme parks where you can grab a lighter snack and relax.

Really, any cool spot where you can sit down works. Knockturn Alley in The Wizarding World of Harry Potter - Diagon Alley at Universal Studios Florida is always refreshing, though dark. Jurassic Park Discovery Center in Islands of Adventure is a great place for kids to explore while adults unwind. 

9.  Watch the shows

Rides get a lot of the love, but Universal Orlando’s live entertainment is top tier. You can find showtimes on the free resort app or simply stop to watch performances you stumble across while roaming the parks.

The only year-round shows with dedicated seating are at Universal Studios Florida: Animal Actors On Location! , The Bourne Stuntacular , and Universal Orlando’s Horror Make-Up Show, which is more funny than scary.

10. Let little ones stretch their legs

There are several play areas across both theme parks for little ones to burn off energy.

This summer, a new DreamWorks Land will open at Universal Studios Florida with a “Kung Fu Panda”-themed play area.

At Islands of Adventure, kids can explore Camp Jurassic in Jurassic Park, If I Ran a Zoo in Seuss Landing, and Me Ship, The Olive in Toon Lagoon. There are also splash pads and water features across Toon Lagoon; just make sure to either bring swimsuits or backup clothes for those.

Bonus: Don’t sleep on Volcano Bay

You’ll definitely want to pack swimsuits if you’re heading to Volcano Bay, which regularly ranks among the best water parks in the country and adds a completely different experience to vacations.

It’s themed like a tropical paradise, with plenty of trees and an iconic volcano that houses multiple water slides. The water park can get crowded, but you never spend too much time standing in line because every guest gets a Tapu Tapu wearable bracelet that lets them join one virtual queue at a time. 

Single-day tickets start at $80, which is considerably less than the $119 starting price for guests age 10 and up at Universal Studios Florida or Islands of Adventure, but still not cheap. However, if you’re already planning to buy multiday tickets for both theme parks, tacking on Volcano Bay is not much more.

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Biden is canceling $7.4 billion in student debt for 277,000 borrowers. Here's who is eligible.

By Aimee Picchi

Edited By Alain Sherter

Updated on: April 12, 2024 / 3:29 PM EDT / CBS News

The Biden administration on Friday said it's canceling $7.4 billion in student debt for 277,000 borrowers, with the recipients scheduled to receive emails today to alert them to their loan discharges. 

The latest effort extends the debt relief provider under President Joe Biden after the Supreme Court last year blocked  his administration's plan for broad-based student loan forgiveness. With the latest batch of loan cancellations, the White House said it has forgiven about $153 billion in debt for 4.3 million student borrowers. 

Biden, who had made student loan relief a major campaign pledge, is tackling an issue that affects about 43 million Americans with a combined  $1.7 trillion in student debt. It's a burden that some borrowers and their advocates say has harmed their ability to save for a home or achieve financial milestones, an issue that was echoed by Education Secretary Miguel Cardona in a conference call with reporters. 

"I talked to a teacher in New York this week who took out a loan for $30,000," Cardona said Friday, "and after over a decade of paying and being a teacher the debt was $60,000, and she was saying that the interest was so high that the payments that she was making wasn't even touching her principal."

He added, "We are fixing a broken system. We're relentless and taking steps to transform a broken system into one that works people across the country."

Here's what to know about who is eligible for the latest round of forgiveness.

Who qualifies for the student loan forgiveness?

Three groups of people qualify under the latest round of debt relief, the White House said. 

• $3.6 billion for 206,800 borrowers enrolled in the SAVE plan.

About $3.6 billion will be forgiven for nearly 207,000 borrowers enrolled in the Saving on a Valuable Education (SAVE) plan, an income-driven repayment program, or IDR, that the Biden administration created last year. 

The White House said borrowers who are getting their debt discharged under SAVE had taken out smaller loans for their college studies. The plan allows people to receive forgiveness after they made at least 10 years of payments if they originally took out $12,000 or less in loans to pay for college; borrowers with larger loans are eligible after 20 or 25 years of repayment, depending on what types of loans they have. 

 "You sacrifice and you've saved for a decade or more to make your student loan payments, and you originally borrowed $12,000 or less, you're going to see relief," Cardona told reporters. "An overwhelming number of those who qualify for SAVE were eligible for Pell grants and come from low- and middle-income communities."

• $3.5 billion for 65,700 borrowers in income-repayment plans.

These borrowers will receive forgiveness through "administrative adjustments" to repayment plans where loan servicers had made it tougher for some borrowers to qualify for relief.  

"These are people who paid for a long time but were being deprived of relief because of administrative and servicing failures," Cardona said. "These people met the contract of their loan" and will receive forgiveness.

• $300 million for 4,600 borrowers through Public Service Loan Forgiveness (PSLF).  

The PSLF program is designed to help public servants like teachers and government employees achieve debt forgiveness after 10 years of repayment. It's a program that started in 2007 but had been plagued with complex rules that effectively hampered people from getting their debt discharged, with only 7,000 receiving loan forgiveness prior to the Biden administration. 

With the latest round of discharges, the Biden administration has forgiven $62.8 billion in loans for 876,000 borrowers through PSLF. 

Are there legal challenges to Biden's debt forgiveness plans?

In two separate lawsuits, Republican attorneys general in 18 states are pushing to have the SAVE plan tossed and to halt any further student debt cancellation. They say the SAVE plan oversteps Biden's authority and makes it harder for states to recruit employees. They also contend the plan undermines a separate cancellation program that encourages careers in public service.

It's unclear what the suits could mean for loans that have already been canceled. A court document filed by Kansas' attorney general says it's "unrealistic to think that any loan forgiveness that occurs during this litigation will ever be clawed back."

—With reporting by the Associated Press.

• Biden Administration
• Student Loan

Aimee Picchi is the associate managing editor for CBS MoneyWatch, where she covers business and personal finance. She previously worked at Bloomberg News and has written for national news outlets including USA Today and Consumer Reports.

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10 credit card tips to help you avoid disaster when traveling abroad

Y our international flights are booked, your fancy hotels are reserved, and your itinerary is jammed with insomnia-inducing bucket list adventures. All that’s left to do is pack, yeah?

Actually, no. Before you leave home, doing some quick financial housekeeping is wise. If you don’t have a solid credit card strategy, you could pay hundreds of dollars in fees, forfeit easy savings on purchases you planned to make anyway, and even find that your card is nonfunctional at checkout. Here are ten ways to make traveling internationally with a credit card easy.

10 ways to make traveling internationally with a credit card easy

It’s worth exerting a bit of effort to abide by these tips before your trip to avoid a potential hassle during your vacation.

1. Choose a card designed for travel

If you’re planning an overseas trip, you should open a proper travel credit card . It’s not a gimmick—you can achieve a lot of value from the benefits of a credit card specifically constructed with travelers in mind.

For example, many non-travel credit cards will charge a fee when you make a purchase that is processed outside the U.S. During your international trip, you could pay up to 3% in foreign transaction fees for all spending . But most travel credit cards waive these fees.

Depending on how much you spend abroad, waived foreign transaction fees could amount to hundreds of dollars in savings.

2. Tell the card issuer your travel plans

“See if you need to put a travel notification on your account,” says Jen Ruiz, founder at Jen on a Jet Plane. “Many travel credit cards don’t require it but others may. Your debit card definitely will if you intend to withdraw cash.”

Taking this precaution can save you a lot of headaches. If you don’t keep your credit card issuers in the loop when you plan to travel, transactions could be declined as a fraud prevention measure when you try to use your card. Understandably, a charge on your card 7,000 miles from your home can raise a red flag with your issuer. 

Most major banks allow you to file a travel notice online. You can input the countries you plan to visit, allowing you to swipe your card along your travels worry-free.

Some credit cards will proactively note your travel plans if you use them to purchase your travel. For example, if you use your card to buy a plane ticket to Paris, you may get a message from your card issuer letting you know that your card has been approved for use in France.

3. Research applicable fees

Depending on your destination, you could be in for unexpected fees whenever you swipe your credit card. For example, when you swipe a credit card at checkout, the merchant accepting payment must cough up a “processing fee” to the credit card issuer. To the merchant, this fee is often well worth the convenience it brings for its patrons. But sometimes, the merchant will tack that fee onto your final bill.

It’s worth researching to see if the area you’re visiting is in the habit of putting the processing fee in your lap—and if so, you may decide to bring along some extra cash to save money.

4. Avoid dynamic currency conversion (DCC)

If you’ve ever been abroad, you may have been asked a strange question at checkout immediately after inserting your credit card into the point of sale: Would you like to pay in local currency or U.S. currency?

It’s understandable to want to view your payment in U.S. dollars—simply to better comprehend exactly how much you’re spending. But get this: If you choose to convert your bill into U.S. dollars, you’ll be subject to what is often an egregiously unfavorable exchange rate. This could result in an upcharge of more than 3%. You may even be charged additional fees for the conversion.

Also, realize that requesting a bill to be charged in your home currency doesn’t circumvent foreign transaction fees. You may still be liable for those on top of the exchange rate.

5. Bring a backup card

For a myriad of reasons, you should bring along more than one card on your international fling. For example:

• You may lose your primary credit card.
• The card’s payment network, such as American Express and Discover, may not be widely accepted where you’re going (we’ll discuss this more shortly).
• Fraud or other complications may make your card temporarily useless.

To be extra precautious, Jen suggests to “[k]eep one credit card separate from the rest as a backup. Don’t keep all your cards and money in one place.” Your second card could be a debit card or a prepaid card—but we recommend grabbing another credit card, as it comes with benefits and protections such as $0 liability for unauthorized charges.

6. Set up a PIN (if applicable)

Ever heard of the term “chip and PIN” when referring to a credit card?

Nearly all credit cards nowadays tout an EMV chip. But surprisingly few credit cards in the U.S. are “chip and PIN,” which allow you to complete payment by entering a four-digit number at the point of sale. Instead, most U.S. credit cards are “chip and signature,” which only requires a quick scribble.

In a handful of scenarios, particularly around Europe, you’ll need a true chip and PIN credit card to complete your transaction. For example, an unattended kiosk may prompt you for your PIN after you insert your credit card into the reader. If you don’t have a PIN, you won’t be able to complete your transaction.

Having a chip and PIN card could be the difference between filling up your gas tank and finding yourself stranded without a viable payment method. It’s worth calling your credit card issuer to see if you can set up a PIN on the card you plan to take.

7. Find out how to get cash

We scream endlessly that the hefty fees and high APR of cash advances make them a bad deal . They should only be used in case of emergency. It’s better to plan ahead and take a debit card that will allow you to make withdrawals abroad.

But emergencies happen, and you may find yourself in a circumstance that warrants a cash advance from your credit card. You’ll need to enter a PIN to receive cash, so contact your credit card issuer if you don’t know the preset PIN. You should also have the option to select a personalized number.

8. Write down the customer service number for your card

In most cases, your credit card’s customer service number is on the back of your card. If it’s not there, be sure to jot it down and keep it in a safe place just in case something goes awry with your payment method.

Additionally, if you’ve got a fancy card that comes with an increased level of customer service, note the number that directly connects you with your white glove hotline. For example, The Platinum Card® from American Express offers a dedicated concierge service with a number different from Amex’s regular customer service number.

It’s easy enough to find these details by navigating the automated phone labyrinth or simply googling, but it doesn’t hurt to have it immediately available.

9. Check your card benefits for travel perks

Travel credit cards can do more than just waive foreign transaction fees and extract cash from ATMs; they can revolutionize the quality of your travel. Depending on the credit card you’ve got, you could benefit from:

• Airport lounge access. There are multiple lounge networks comprising thousands of lounges worldwide, many offering free food and alcohol. With the right credit card, you can access most of these lounges for free as often as you want (with an active boarding pass).
• Trusted traveler programs. Many credit cards provide credit toward the TSA PreCheck or Global Entry application fees. Membership to either of these programs means you (usually) won’t have to remove your shoes and belt at airport security.
• Travel insurance. When you use your qualifying travel rewards credit card to reserve your travel, you’ll receive travel insurance benefits like trip delay protection, travel accident insurance, primary rental car insurance, and more.
• Elite status perks. Many credit cards confer elite status benefits for specific airline and hotel brands. Holding one such card may be enough to influence which hotel brands you stay with—or which airlines you fly.
• Statement credits. The top travel credit cards offer annual credits to offset common travel purchases, such as airfare, hotel stays, rental cars, and baggage fees.

10. Choose a widely accepted payment network

A payment network is a platform that credit card issuers use to process your credit card transactions. Common payment networks in the U.S. include Visa, Mastercard, American Express, and Discover.

Outside the U.S., however, don’t be so confident that your payment network will be as ubiquitous. Visa and Mastercard tend to have virtually universal acceptance. American Express and Discover are a different story—though they are still accepted in many countries.

Top credit cards for international travel

If you’re looking for the best travel credit cards to complement your globetrotting lifestyle, you’ve got a slew of high-powered options to choose from. You need to ask yourself one question as you decide: Do the travel benefits outweigh the annual fee?

For example, the Chase Sapphire Preferred ® Card charges a $95 annual fee. Beyond waived foreign transaction fees, the card’s main draw is its travel coverages. The card’s trip delay insurance, baggage delay insurance, and primary rental car insurance alone can save you many hundreds of dollars during your trip. But if you don’t value trip delay insurance, the card isn’t worth it for you.

The Capital One Venture X Rewards Credit Card charges a $395 annual fee. But it comes with up to $300 back annually for bookings made through Capital One Travel l and 10,000 bonus miles (equal to $100 towards travel) every year, starting on your first anniversary. That’s an easy $400 in free travel each year, which more than offsets the card’s annual fee.

In other words, this card is an easy win if you regularly spend at least $400 on travel each year. You can then enjoy the card’s complimentary access to 1,500+ lounges through Priority Pass, elite travel insurance, and application reimbursement for TSA PreCheck or Global Entry without the guilt of an imposing annual fee weighing on your conscience.

The takeaway

There are quite a number of credit card-related details to consider before your international trip. Taking a few precautionary measures, such as opening a travel-centric credit card, setting a PIN, and bringing along more than one card can go a long way toward making your trip a smooth one.

Please note that card details are accurate as of the publish date but are subject to change at any time at the issuer’s discretion. Before applying, please contact the card issuer to verify rates, fees, and benefits.

Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more.

Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by Amex Assurance Company.

This story was originally featured on Fortune.com

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2024 Federal Budget analysis

On April 16, 2024, the Deputy Prime Minister and Minister of Finance, Chrystia Freeland, presented the government’s budget. The budget:

• increases the capital gains inclusion rate from 1/2 to 2/3, effective June 25, 2024 (up to $250,000 of annual gains for individuals will continue to benefit from the 1/2 inclusion rate)
• raises the lifetime capital gains exemption to $1.25 million and introduces a new 1/3 inclusion rate for up to $2 million of certain capital gains realized by entrepreneurs
• confirms previously announced alternative minimum tax proposals effective January 1, 2024, but softens the impact of these proposals on charitable donations
• provides design and implementation details for the clean electricity investment tax credit
• introduces accelerated capital cost allowance (CCA) for, and relief from interest deductibility limitations for debt incurred to fund the construction of, certain purpose-built rental housing
• provides immediate expensing for the cost of certain patents and computer equipment and software
• gives the Canada Revenue Agency (CRA) additional information gathering powers

This Tax Insights discusses these and other tax initiatives proposed in the budget.

Tax measures

Capital gains inclusion rate.

• Lifetime Capital Gains Exemption

Canadian Entrepreneurs’ Incentive

• Alternative Minimum Tax

Employee Ownership Trust Tax Exemption

Volunteer firefighters tax credit and search and rescue volunteers tax credit, mineral exploration tax credit for flow-through share investors.

• Canada Child Benefit

Disability Supports Deduction

Charities and qualified donees.

• Home Buyers’ Plan

Qualified Investments for Registered Plans

Deduction for tradespeople’s travel expenses, indigenous child and family services settlement, clean electricity investment tax credit, ev supply chain investment tax credit, clean technology manufacturing investment tax credit.

• Accelerated Capital Cost Allowance

Interest Deductions and Purpose-Built Rental Housing

Taxing vacant lands to incentivize construction, confronting the financialization of housing, halal mortgages, non-compliance with information requests, synthetic equity arrangements, mutual fund corporations, canada carbon rebate for small business, avoidance of tax debts, reportable and notifiable transactions penalty, manipulation of bankrupt status.

• Scientific Research and Experimental Development

International

Crypto-asset reporting, withholding for non-resident service providers, international tax reform.

• Extending GST Relief to Student Residences

GST/HST on Face Masks and Face Shields

Previously announced, personal tax measures.

The budget proposes to increase the capital gains inclusion rate from 1/2 to:

• 2/3 for dispositions after June 24, 2024 for corporations and trusts, and
• 2/3 for the portion of capital gains realized after June 24, 2024 in excess of an annual $250,000 threshold for individuals

The $250,000 annual threshold would apply to capital gains realized by an individual, either directly or indirectly via a partnership or trust, net of:

• current year capital losses
• capital losses of other years applied to reduce current year capital gains, and
• capital gains in respect of which the Lifetime Capital Gains Exemption (LCGE), the proposed Employee Ownership Trust Exemption or the proposed Canadian Entrepreneurs’ Incentive is claimed

As a result, the following rates will apply to capital gains earned by individuals in excess of the $250,000 threshold who are subject to the top marginal income tax rate (i.e. on taxable income exceeding: $355,845 in Alberta, $252,752 in British Columbia, $1,103,478 in Newfoundland and Labrador, $500,000 in the Yukon and $246,752 in all other jurisdictions).

The budget also proposes to decrease the stock option deduction to 1/3 to align with the new capital gains inclusion rate.  Individuals would continue to benefit from a deduction of 1/2 of the taxable benefit up to a combined $250,000 for both employee stock options and capital gains.

The inclusion rate for net capital losses carried forward and applied against capital gains will be adjusted to reflect the inclusion rate of the capital gains being offset.   

Transitional rules will apply to taxation years that begin before June 25, 2024 and end after June 24, 2024 such that capital gains realized before June 25, 2024 would be subject to the 1/2 inclusion rate and capital gains realized after June 24, 2024 (net of any losses) would be subject to a 2/3 inclusion rate. The $250,000 threshold will not be prorated for individuals in 2024 and will apply only against capital gains incurred after June 24, 2024.

Additional details will be provided in the coming months.   

Earning capital gains through a Canadian-controlled private corporation (CCPC)

In most jurisdictions, the increase in the capital gains inclusion rate makes it less attractive for individuals to earn capital gains in excess of $250,000 through a CCPC instead of directly. The  Appendix shows the resulting income tax deferral (prepayment) and the tax cost for an individual who realizes capital gains in excess of $250,000 and pays tax at the top tax rate.

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Lifetime Capital Gains Exemption (LCGE)

The budget proposes to increase the LCGE on eligible capital gains from $1,016,836 to $1,250,000 for dispositions that occur after June 24, 2024. The indexing of the LCGE to inflation will resume in 2026.

The budget introduces the Canadian Entrepreneurs’ Incentive, which will reduce the taxes on capital gains from the disposition of shares by eligible individuals which meet the following conditions:

• at the time of the sale the share was a share of a small business corporation owned directly by an individual
• used principally in an active business carried on primarily in Canada by the CCPC or a related corporation
• certain shares or debts of connected corporations, or
• a combination of these assets
• the individual was a founding investor and the individual held the share for a period of five years prior to the disposition
• at all times since the share subscription until the time immediately before the sale, the individual directly owned shares with a fair market value (FMV) of more than 10% of the FMV of all of the issued and outstanding shares of the corporation and shares entitling the individual to more than 10% of the votes
• throughout the five year period before the disposition the individual was actively engaged in a regular, continuous and substantial basis in the activities of the business
• the share does not represent a direct or indirect interest in a professional corporation, a corporation whose principal asset is the reputation or skill of one or more employees, or a corporation that carries on certain types of businesses including a business operating in the financial, insurance, real estate, food and accommodation, arts, recreation, or entertainment sector, or providing consulting or personal care services
• the share must have been obtained for fair market value consideration

The incentive would provide a capital gains inclusion rate of one half of the prevailing inclusion rate on up to $2 million in capital gains per individual during their lifetime. The $2 million limit will be phased in over 10 years by increments of $200,000 per year reaching $2 million by January 1, 2034.  

Applying the proposed 2/3 inclusion rate would result in an inclusion rate of 1/3 for qualifying dispositions.  This will apply in addition to the LCGE.

This measure would apply to dispositions that occur after December 31, 2024.

Alternative Minimum Tax (AMT)

The 2023 budget announced amendments to change the calculation of the AMT. Draft legislative proposals were released for consultation in the summer of 2023. (For more information, see our Tax Insights “ Proposed changes to the alternative minimum tax: How will it affect individuals and trusts ”.)

The budget proposes to revise the proposed charitable donation tax credit claim to allow individuals to claim 80% when calculating AMT (as opposed to the previously proposed 50%).

The budget also proposes additional amendments to the AMT proposals including:

• allowing deductions for the Guaranteed Income Supplement, social assistance and workers compensation payments
• fully exempting employee ownership trusts (EOTs) from the AMT, and
• allowing certain disallowed credits under the AMT to be eligible for the AMT carry-forward (i.e. the federal political contribution tax credit, investment tax credits (ITCs), and labour-sponsored funds tax credit)

The amendments would apply to taxation years that begin after December 31, 2023.

The budget also proposes certain technical amendments to the AMT legislative proposals to exempt certain trusts for the benefit of Indigenous groups.

The 2023 budget proposed tax rules to create EOTs. The 2023 Fall Economic Statement proposed to exempt $10 million of capital gains on the sale of a business to an EOT subject to certain conditions.

The budget introduces the conditions for this exemption. The exemption will be available to an individual (other than a trust) on the sale of a business to an EOT where the following conditions are met:

• the individual, a personal trust of which the individual is a beneficiary, or a partnership in which the individual is a member, disposes of shares of a corporation that is not a professional corporation
• the transaction is a qualifying business transfer (as defined in the proposed rules for EOTs) in which the trust acquiring the shares is not already an EOT or a similar trust with employee beneficiaries
• throughout the 24 months immediately prior to the qualifying business transfer, the transferred shares were exclusively owned by the individual claiming the exemption, a related person, or a partnership in which the individual is a member; and over 50% of the FMV of the corporation’s assets were used principally in an active business
• at any time prior to the qualifying business transfer, the individual (or their spouse or common-law partner) has been actively engaged in the qualifying business on a regular and continuous basis for a minimum period of 24 months
• immediately after the qualifying business transfer, at least 90% of the beneficiaries of the EOT are resident in Canada

Where multiple individuals dispose of shares to an EOT as part of a qualifying transfer and meet the conditions above, they may each claim an exemption, however the total exemption in respect of the sale cannot exceed $10 million. The individuals would have to agree on the allocation of the exemption.

If an EOT has a disqualifying event within 36 months of the transfer, the exemption claim will be retroactively denied. If this occurs more than 36 months after a transfer the EOT will be deemed to realize a capital gain equal to the total exempt capital gains. A disqualifying event would result where an EOT loses its status as an EOT or if less than 50% of the FMV of the qualifying business shares is attributable to assets used principally in an active business at the beginning of two consecutive years of the corporation.

The EOT, any corporation owned by the EOT that acquired the transferred shares, and the individual will need to elect to be jointly and severally, or solitarily liable for any tax payable by the individual as a result of an exemption being denied due to a disqualifying event occurring during the first 36 months.  

For the purposes of the AMT calculation the capital gain on the transfer would be subject to an inclusion rate of 30% (consistent with the inclusion rate for capital gains eligible for the LCGE).            

An individual’s normal reassessment period as it relates to this exemption is proposed to be extended by an additional three years.

The budget also proposes to expand qualifying business transfers to include the sale of shares to a workers cooperative corporation, provided it meets certain conditions.

These measures will apply to qualifying dispositions of shares that occur between January 1, 2024 through December 31, 2026.

The budget proposes to double the volunteer firefighters tax credit and the search and rescue volunteers tax credit to $6,000 for the 2024 and subsequent taxation years; this increases the maximum annual tax savings to $900.

The budget proposes to extend the eligibility for this credit for an additional year, so that it will apply to flow-through share agreements entered into before April 1, 2025.

Canada Child Benefit (CCB)

A CCB recipient is no longer eligible to claim the CCB in respect of a child in the month following the child’s death. The budget proposes to extend eligibility for the CCB to six months after the child’s death, provided the individual continued to be eligible for the CCB.

The budget proposes to extend the list of expenses recognized for the disability supports deduction.

It also provides that expenses for service animals, as defined under the medical expense tax credit (METC) rules, will be recognized under the disability supports deduction. The individual will choose whether to claim under the METC or the disability supports deduction.

A foreign charity may register as a qualified donee for a 24-month period where it received a gift from His Majesty in right of Canada and it is pursuing certain activities in the national interest of Canada.  The budget proposes to extend the eligibility of a foreign charity to be considered a qualified donee from 24 months to 36 months.  The foreign charity would also be required to submit an annual information return to the CRA that would be made publicly available. The extension will apply to foreign charities registered after April 16, 2024. The reporting requirements will apply to taxation years beginning after April 16, 2024.        

The budget also proposes to simplify the issuance of official donation receipts by removing certain requirements.

Home Buyers’ Plan (HBP)

To help first-time home buyers, the budget proposes to:

• increase, from $35,000 to $60,000, the amount that an eligible home buyer can withdraw from their Registered Retirement Savings Plan (RRSP) under the HBP, without subjecting the withdrawal to tax, to buy or build a qualifying home (i.e. a first home or a home for a specified disabled individual), effective for the 2024 and subsequent calendar years, for withdrawals made after April 16, 2024
• temporarily extend the repayment grace period by three years, to five years, under the HBP, so that eligible home buyers who withdraw from their RRSP between January 1, 2022 and December 31, 2025 will have up to five years before they need to start repayments to their RRSP

Registered plans (RRSPs, Registered Retirement Income Funds, Tax-Free Savings Accounts, Registered Education Savings Plans, Registered Disability Savings Plans, First Home Savings Accounts, and Deferred Profit Sharing Plans) can invest only in qualified investments for those plans. Qualified investments include mutual funds, publicly traded securities, government and corporate bonds and guaranteed investment certificates. Over the years the qualified investment rules have been expanded to include additional investments for certain plans and to reflect the introduction of new types of plans, but there are inconsistencies and the qualified investment rules are difficult to understand in some cases.

Specific issues are currently under consideration. Stakeholders are invited to submit comments by July 15, 2024 as to how the qualified investment rules can be modernized on a prospective basis to improve the clarity and coherence of the registered plans regime.

Eligible tradespeople and apprentices in the construction industry are currently able to deduct up to $4,000 in eligible travel and relocation expenses per year by claiming the labour mobility deduction for tradespeople. A private member’s bill (Bill C-241) was introduced to enact an alternative deduction for certain travel expenses of tradespeople in the construction industry, with no cap on expenses, retroactive to the 2022 taxation year.

The budget announces that the government will consider bringing forward amendments to the Income Tax Act (ITA) to provide a single, harmonized deduction for tradespeople’s travel that respects the intent of Bill C-241.

The budget proposes to amend the ITA to exclude from taxation the income of the trusts established under the First Nations Child and Family Services, Jordan’s Principle, and Trout Class Settlement Agreement. This will also ensure that payments received by class members as beneficiaries of the trusts will not be included when computing income for federal income tax purposes.

This measure will apply to the 2024 and subsequent taxation years.

Business tax measures

The 2023 budget proposed a refundable ITC for clean electricity, equal to 15% of the capital cost of eligible property. The 2024 budget provides the design and implementation details of the ITC, including the eligibility criteria. It also includes special rules for property that generates electricity from natural gas with carbon capture and property used to transmit electrical energy between provinces or territories, as well as details of the compliance and recovery process.

The ITC will be available only to eligible Canadian corporations, which are defined as:

• taxable Canadian corporations and pension investment corporations
• provincial and territorial Crown corporations (subject to additional requirements)
• corporations owned by municipalities or Indigenous communities

Property eligible for the ITC includes equipment used to generate electricity from:

• solar, wind or water energy (certain class 43.1 property, but hydroelectric installations would not be subject to a capacity limit)
• concentrated solar energy (as defined for the purposes of the proposed clean technology ITC)
• nuclear fission, including heat generating equipment (as defined for the purposes of the proposed clean technology ITC, without the generating capacity limits and other certain requirements of that credit)
• geothermal energy, including heat generating equipment, if it is used exclusively for that purpose (excluding equipment that is part of a system that extracts fossil fuel for sale)
• specified waste materials, as part of a system

Eligible property also includes equipment that is:

• stationary electricity storage equipment and equipment used for pumped hydroelectric energy storage (excluding any that uses a fossil fuel in operation)
• part of an eligible natural gas energy system (special rules apply)
• used for transmission of electricity between provinces and territories (special rules apply)

Previously proposed labour requirements must be met to qualify for the 15% ITC, otherwise a 5% ITC is available. The ITC will be subject to potential repayment obligations, repayable in proportion to the FMV of the particular property when it has been converted to an ineligible use, exported from Canada, or disposed of.

The ITC will be available for new eligible property (i.e. has not been used for any purposes before its acquisition) that is acquired and becomes available for use after April 15, 2024 and before 2035 in respect of projects that did not begin construction before March 28, 2023.

The budget introduces the EV supply chain ITC, equal to 10% of the cost of buildings used in Canada in the following electric vehicle supply chain segments:

• electric vehicle assembly
• electric vehicle battery production
• cathode active material production

To qualify for the ITC, the taxpayer (or member of a group of related taxpayers) must claim the clean technology manufacturing ITC (CTMITC) in all three of the segments (or must claim the CTMITC in two of the three segments and hold at least a qualifying minority interest in an unrelated corporation that claims the CTMITC in the third segment – the building costs of the unrelated corporation would also qualify for the new ITC).

The ITC is effective for property that is acquired and becomes available for use after December 31, 2023. The ITC will be reduced to 5% for 2033 and 2034 and 0% after 2034. Design and implementation details of the ITC will be provided in the 2024 Fall Economic Statement.

The 2023 budget proposed a clean technology manufacturing ITC, and draft legislative proposals were released in December 2023. The 2024 budget proposes to update the clean technology manufacturing ITC for production of qualifying minerals (such as copper, nickel, cobalt, lithium, graphite and rate earth elements) that occur at polymetallic projects (i.e. projects engaged in the production of multiple minerals) by:

• clarifying that the value of qualifying materials will be used as the appropriate output metric when assessing the extent to which property is used (or expected to be used) for qualifying mineral activities producing qualifying materials
• modifying eligible expenditures to include investments in eligible property used in qualifying mineral activities that are expected to produce primarily qualifying materials at mine or well sites, including tailing ponds and mills located at these sites (50% or more of the financial value of the output comes from qualifying materials)

A safe harbour rule will apply to the recapture rule for all qualifying mineral activities, to mitigate against the effects of mineral price volatility on the potential recapture of the ITC, the details of which will be provided at a later date.

Accelerated Capital Cost Allowance (CCA)

Purpose-built rental housing.

The budget provides an accelerated CCA of 10% for new eligible purpose-built rental projects that begin construction after April 15, 2024 and before January 1, 2031, and are available for use before January 1, 2036.

Eligible property will be new purpose-built rental housing that is a residential complex:

• with at least four private apartment units, or 10 private rooms or suites, and
• in which at least 90% of residential units are held for long-term rental

The Accelerated Investment Incentive (AII), which suspends the half-year rule, will continue to apply to eligible property put in use before 2028. The accelerated CCA will not apply to renovations of existing residential complexes, but new additions to an existing structure will be eligible. Projects that convert existing non-residential real estate into a residential complex will be eligible.

Productivity-enhancing assets

The budget provides immediate expensing (i.e. a 100% first-year CCA deduction) for property that is acquired after April 15, 2024 and becomes available for use before January 1, 2027, for the following CCA classes of assets:

• class 44 (patents or rights to use patented information for a limited or unlimited period)
• class 46 (data network infrastructure equipment and related systems software)
• class 50 (general-purpose electronic data-processing equipment and systems software)

The accelerated CCA will be available only for the year in which the property becomes available for use. For a short taxation year, the accelerated CCA must be prorated and will not be available in the following taxation year. Property that becomes available for use after 2026 and before 2028 will continue to benefit from the AII.

Property that has been used (or acquired for use) for any purpose before it is acquired by the taxpayer will be eligible for the accelerated CCA only if both of the following conditions are met:

• neither the taxpayer nor a non-arm’s length person previously owned the property, and
• the property has not been transferred to the taxpayer on a tax-deferred “rollover” basis

The excessive interest and financing expenses limitation (EIFEL) rules restrict a Canadian taxpayer’s deductions for interest and financing expenses, based upon a percentage of its “tax-EBITDA” (i.e. its taxable income, adjusted for items such as interest expenses, depreciation and amortization). For a discussion of the EIFEL rules, see our  Tax Insights “ Bill C-59 ─ Excessive interest and financing expenses limitation (EIFEL) regime .” The EIFEL rules currently include a single sector-specific exemption, for certain interest and financing expenses relating to public-private partnership (P3) infrastructure projects. The budget proposes to extend this election, on an elective basis, for certain interest and financing expenses relating to arm’s length financing that is used to build or acquire certain purpose-built rental housing located in Canada. This exemption will be effective for taxation years beginning after September 30, 2023, consistent with the EIFEL rules more generally. However, this exemption will be available only for expenses incurred before January 1, 2036.

The government is concerned that some landowners are holding residentially zoned vacant land as a speculative investment. The budget announces that the government will consider introducing a new tax on residentially zoned vacant land to spur development. The government will launch consultations later this year.

In March 2024, the government began consultations on how federal policies can better support the needs of all Canadians seeking to become homeowners. The government will provide an update in the 2024 Fall Economic Statement.

The budget announces the government’s intention to restrict the acquisition of existing single-family homes by very large corporate investors. The government will consult in the coming months and provide further details in the 2024 Fall Economic Statement.

The budget announces that the government is exploring new measures to expand access to alternative financing products for home purchasers, such as halal mortgages. These measures could include changes in the tax treatment of these products or a new regulatory regime for financial service providers, while ensuring adequate consumer protections are in place.

The budget proposes several amendments to the CRA’s information gathering provisions in the ITA, with the intent of enhancing the efficiency and effectiveness of tax audits and facilitating the collection of tax revenues on a timelier basis. These changes include:

• allowing the CRA to issue a new type of notice, referred to as a “notice of non-compliance” and to levy a monetary penalty
• permitting the CRA to specify that any required information (oral or written) or documents be provided under oath or affirmation
• imposing a penalty when the CRA obtains a compliance order against a taxpayer, and
• extending the stop the clock rules (which suspend the counting of days in the assessment limitation period), so that these rules apply when a taxpayer seeks judicial review of any requirement or notice issued to the taxpayer by the CRA in relation to the audit and enforcement process, and during any period that a notice of non-compliance is outstanding

Analogous amendments are also proposed to other federal tax statutes administered by the CRA. The budget also proposes certain technical amendments to ensure the rules meet their policy objectives.

These amendments would come into force upon royal assent of the enacting legislation.

The ITA allows a corporation to deduct the amount of any dividends received on a share of a corporation resident in Canada, subject to certain limitations.

One of these limitations is an anti-avoidance rule that denies the dividend received deduction in connection with synthetic equity arrangements. Synthetic equity arrangements include arrangements in which a person receives a dividend on a share, but all or substantially all of the risk of loss and opportunity for gain or profit (the “economic exposure”) in respect of the share are provided to another person.

Where a taxpayer enters into a synthetic equity arrangement in respect of a share, the taxpayer is generally obligated to compensate the other person for the amount of any dividends paid on the share. This compensation payment may result in a tax deduction for the taxpayer in addition to the dividend received deduction. Unless the anti-avoidance rule applies to deny the dividend received deduction, a tax loss would generally arise as a result of the two deductions.

The anti-avoidance rule incorporates certain exceptions, including where the taxpayer establishes that no tax-indifferent investor has all or substantially all of the economic exposure in respect of the share. An associated exception is also available for synthetic equity arrangements traded on a derivatives exchange.

The budget proposes to remove the tax-indifferent investor exception (including the exchange traded exception) to the anti-avoidance rule. This measure would prevent taxpayers from claiming the dividend received deduction for dividends received on a share in respect of which there is a synthetic equity arrangement.

This measure would apply to dividends received after December 31, 2024.

A mutual fund is a type of investment vehicle that allows investors to pool their money and invest in a portfolio of investments without purchasing the investments directly. A mutual fund corporation is a mutual fund organized as a corporation that meets certain conditions set out in the ITA.

The ITA includes special rules for mutual fund corporations that facilitate conduit treatment for investors (shareholders). For example, these rules generally allow capital gains realized by a mutual fund corporation to be treated as capital gains realized by its investors. In addition, a mutual fund corporation is not subject to mark-to-market taxation and can elect capital gains treatment on the disposition of Canadian securities.

To qualify as a mutual fund corporation under the ITA, a corporation must satisfy several conditions, including that it must be a “public corporation”. A corporation can meet this condition if a class of its shares is listed on a designated stock exchange in Canada. A corporation that is controlled by a corporate group may satisfy this condition, and qualify as a mutual fund corporation, even though it is not widely held. The government is concerned that this could allow a corporate group to use a mutual fund corporation to benefit from the special rules available to these corporations in an unintended manner.

Although the government believes this planning can be challenged based on existing rules in the ITA, the budget proposes specific amendments to the ITA to preclude a corporation from qualifying as a mutual fund corporation where it is controlled by or for the benefit of a corporate group (including a corporate group that consists of any combination of corporations, individuals, trusts, and partnerships that do not deal with each other at arm’s length). Exceptions would be provided to ensure that the measure does not adversely affect mutual fund corporations that are widely held pooled investment vehicles.

This measure would apply to taxation years that begin after 2024.

The budget introduces the Canada Carbon Rebate for Small Business, to return a portion of the federal backstop pollution pricing fuel charge proceeds collected from a province. This will be an automatic refundable tax credit for CCPCs with less than 500 employees in Canada in the calendar year in which the fuel charge begins. The tax credit in respect of the 2019-20 to 2023-24 fuel charge years will be available to a CCPC that files a tax return for its 2023 taxation year by July 15, 2024 (with similar timelines for future fuel charge years).

The tax credit amount:

• is determined for each applicable province in which the eligible corporation had employees in the calendar year in which the fuel charge year begins; and
• is equal to the number of persons employed by the eligible corporation in the province in that calendar year multiplied by a payment rate specified by the Minister of Finance for the province for the corresponding fuel charge year

The ITA includes an anti-avoidance rule that is intended to prevent taxpayers from avoiding payment of their tax liabilities by transferring their assets to non-arm’s length persons. The effect of this tax debt avoidance rule is to make the transferee jointly and severally, or solidarily, liable with the transferor for the transferor’s tax debts, to the extent that the value of the property transferred exceeds the amount of consideration given by the transferee for the property.

The ITA contains a number of rules that address various planning techniques employed by taxpayers attempting to circumvent the tax debt avoidance rule, as well as a penalty for those who engage in, participate in, assent to, or acquiesce in planning activity that they know, or would reasonably be expected to know, is tax debt avoidance planning.

The budget includes a new specific measure to address tax debt avoidance planning (although the government believes this planning can also be challenged based on existing rules in the ITA). The measure would apply in the following circumstances:

• there has been a transfer of property from a tax debtor to another person
• as part of the same transaction or series of transactions, there has been a separate transfer of property from a person other than the tax debtor to a transferee that does not deal at arm’s length with the tax debtor, and
• one of the purposes of the transaction or series is to avoid joint and several, or solidary, liability

Where these conditions are met, the property transferred by the tax debtor would be deemed to have been transferred to the transferee for the purposes of the tax debt avoidance rule. This would ensure that the tax debt avoidance rule applies in situations where property has been transferred from a tax debtor to a person and, as part of the same transaction or series, property has been received by a non-arm’s length person. The penalty applicable to those who participate in tax debt avoidance planning would also be extended to this proposed new rule.

In many cases, tax debt avoidance planning is facilitated by a planner who receives a significant fee, which is effectively funded by a portion of the avoided tax debt. The courts have held that a taxpayer who engages in tax debt avoidance planning is normally not jointly and severally, or solidarily, liable for the portion of the tax debt that has effectively been retained by the planner as a fee. The budget proposes that taxpayers who participate in tax debt avoidance planning be jointly and severally, or solidarily, liable for the full amount of the avoided tax debt, including any portion that has effectively been retained by the planner.

Similar amendments would be made to comparable provisions in other federal statutes.

These measures would apply to transactions or series of transactions that occur after April 15, 2024.

The ITA includes a general rule providing that a person who fails to file or make a return or comply with certain specified rules is guilty of an offence, and liable to penalties of up to $25,000 and imprisonment for up to a year. The mandatory disclosure rules in the ITA also include specific penalties that apply in these circumstances, making the application of this general penalty provision unnecessary.

The budget therefore proposes to remove from the scope of the general penalty provision the failure to file an information return in respect of a reportable or notifiable transaction under the mandatory disclosure rules.

This amendment would be deemed to have come into force on June 22, 2023, which is the day the enhanced mandatory disclosure rules received royal assent.

Under the ITA, losses and other tax attributes that arise from expenditures for which a taxpayer did not ultimately bear the cost are generally not recognized. The ITA contains a set of debt forgiveness rules that apply where a commercial debt is settled for less than its principal amount. These rules generally reduce tax attributes by the amount of debt that is forgiven and, where tax attributes have been fully reduced, the rules cause an income inclusion equal to half of the remaining forgiven amount. The ITA also contains a rule that entitles an insolvent corporation to a corresponding deduction to offset all or part of an income inclusion from the debt forgiveness rules.

Bankrupt taxpayers are generally excluded from these debt forgiveness rules. Instead, a separate loss restriction rule applies to extinguish the losses of bankrupt corporations that have received an absolute order of discharge.

The government is concerned that some taxpayers have sought to manipulate the bankrupt status of an insolvent corporation, with a view to benefiting from the exception in the debt forgiveness rules while also avoiding the loss restriction rule applicable to bankrupt corporations. This planning seeks to preserve the losses and other tax attributes of the insolvent corporation (which would otherwise be eliminated upon the forgiveness of its debts), so that these attributes can be acquired and used by a profitable corporation. This planning is the subject of a designated transaction under the notifiable transactions element of the mandatory disclosure rules.

Although the government believes that manipulation of bankrupt status can be challenged based on existing rules in the ITA, the budget proposes a specific legislative measure to address this issue: repealing the exception to the debt forgiveness rules for bankrupt corporations and the loss restriction rule applicable to bankrupt corporations. This change would subject bankrupt corporations to the general rules that apply to other corporations whose commercial debts are forgiven. The bankruptcy exception to the debt forgiveness rules would remain in place for individuals. While bankrupt corporations would be subject to the reduction of their loss carryforward balances and other tax attributes upon debt forgiveness, as insolvent corporations they could qualify for relief from the debt forgiveness income inclusion rule provided under the existing deduction for insolvent corporations.

These proposals would apply to bankruptcy proceedings that are commenced on or after April 16, 2024.

Scientific Research and Experimental Development (SR&ED)

The government launched a consultation on the existing SR&ED tax incentives on January 31, 2024, which closed on April 15, 2024. The budget announces a second phase of consultations, to focus on specific policy parameters, explore how Canadian public companies could become eligible for the enhanced SR&ED ITC and inform how additional funding announced by the budget can support future enhancements to the SR&ED program. Further details of the consultation will be released on the Department of Finance Canada website at a later date.

International tax measures

The Organisation for Economic Co-operation and Development (OECD) has developed a framework for the automatic exchange of tax information relating to transactions in crypto-assets, the Crypto-Asset Reporting Framework (CARF). The budget proposes to implement the CARF in Canada. The new reporting rules will apply to crypto-asset service providers that are resident in Canada, or carry on business in Canada, and that provide services effectuating exchange transactions in crypto-assets. These service providers will need to report certain information regarding their customers and crypto-asset transactions. The budget also includes proposed amendments to the Canadian rules implementing the OECD’s Common Reporting Standard, including changes relating to electronic money products and central bank digital currencies. These measures will apply to 2026 and subsequent calendar years.

A person who makes a payment to a non-resident for services rendered in Canada is currently required to withhold 15% of the payment and remit that amount to the CRA. This is intended to serve as a prepayment of tax that the non-resident may ultimately owe in Canada. Certain non-residents do not owe Canadian tax for these services, e.g. due to exemptions in tax treaties, or exemptions for specific activities like international shipping. In these circumstances, the CRA may provide an advance waiver from the withholding obligation for specific transactions, or the non-residents may apply for refunds of amounts that have already been withheld. The budget proposes to give the CRA legislative authority to grant single waivers that cover multiple transactions occurring over a specific time period, where certain conditions are satisfied. This measure will take effect upon royal assent of the enacting legislation.

The OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting has developed a two-pillar plan to reform the international tax system, as part of the “BEPS 2.0” initiative. On October 8, 2021, Canada and 135 other countries in the Inclusive Framework committed to adopt this plan (for a discussion on that commitment, see our  Tax Insights  “ The new international tax framework and Canada’s digital services tax ”). The budget provides an update on the two pillars of this international tax reform initiative.

Pillar One will introduce new rules for allocating taxing rights between countries to address challenges raised by the digital economy. These rules will generally apply to multinational enterprises (MNEs) with annual revenue above €20 billion and profit margins above 10%. The right to tax a portion of these MNEs’ profits will be reallocated to market countries (i.e. the countries where the MNEs’ users and customers are located).

The budget reaffirms Canada’s commitment to bringing Pillar One into effect as soon as a critical mass of countries is willing to participate. In the meantime, Canada is moving ahead with its plan to enact the Digital Services Tax (DST). Implementing legislation for the DST is currently before Parliament in Bill C-59. The DST will take effect beginning in calendar year 2024, with the first year covering taxable revenues earned since January 1, 2022. (For a discussion of the DST, see our  Tax Insights  “ Digital Services Tax: One step closer to becoming a reality .”)

Pillar Two will introduce a 15% global minimum tax. This tax will generally apply to MNEs with global revenues of at least €750 million. These MNEs will be required to compute their effective tax rate (ETR) in each country where they operate. If the ETR for a particular country is below 15%, a top-up tax will be imposed, to raise that ETR to 15% (this top-up tax may be reduced by a substance-based income exclusion, which is computed based on the payroll costs and net book value of tangible assets located in the jurisdiction). Draft legislative proposals for a Global Minimum Tax Act to implement the Pillar Two regime in Canada were released for public comment in August 2023 (for a discussion of those proposals, see our  Tax Insights  “ Canada releases draft Global Minimum Tax Act ”). The budget states that Canada is moving forward with this implementing legislation and intends to introduce it in Parliament soon.

Sales tax measures

Extending goods and services tax (gst) relief to student residences.

On September 14, 2023, the government announced that it would temporarily remove the GST from new purpose-built rental housing projects (i.e. apartment buildings, student housing and senior residences built specifically for long-term rental accommodation) by implementing an Enhanced (100%) GST Rental Rebate for new qualifying purpose-built rental housing projects (for more information, see our  Tax Insights  “ Enhanced GST rental rebate for rental apartments that begin construction after September 13, 2023 ").

To ensure that universities, public colleges and school authorities can also claim the Enhanced (100%) GST Rental Rebate for student residences that are built for short-term use, the budget proposes to amend the  Excise Tax Act  to allow them to apply the normal GST/Harmonized sales tax (HST) rules that apply to other builders (i.e. paying GST/HST on the final value of the building) in respect of new student housing projects.

The budget also proposes to relax the rebate conditions so that universities, public colleges and school authorities that operate on a not-for-profit basis (i.e. those that would currently qualify for the Public Service Body rebates under the GST/HST) can claim the 100% rebate in respect of any new student residence that they acquire or construct provided it is primarily for the purpose of providing a place of residence for their students.

The proposed measures would apply to student residences that begin construction after September 13, 2023 and before 2031, and that complete construction before 2036.

The budget proposes to repeal the temporary zero rating of certain face masks or respirators and certain face shields under the GST/HST for supplies made after April 30, 2024.

Previously Announced Measures

The budget confirms that the government will proceed with the following previously announced measures, as modified to take into account consultations, deliberations and legislative developments since their announcement or release:

• legislative proposals released on December 20, 2023, which include measures relating to the clean hydrogen ITC, the clean technology manufacturing ITC, concessional loans and short-term rentals
• legislative and regulatory proposals announced in the 2023 Fall Economic Statement, which include measures relating to the Canadian journalism labour tax credit, the expansion of eligibility for the clean technology and clean electricity ITC, the GST/HST joint venture election rules and the Underused Housing Tax
• legislative and regulatory amendments to implement the Enhanced (100%) GST Rental Rebate for purpose-built rental housing announced on September 14, 2023
• the carbon capture, utilization and storage and the clean technology ITCs and labour requirements related to certain “clean economy” ITCs
• enhancing the reduced tax rates for zero-emission technology manufacturers
• flow-through shares and the critical mineral exploration tax credit – lithium from brines
• Retirement Compensation Arrangements
• strengthening the Intergenerational Business Transfer framework
• the income tax and GST/HST treatment of credit unions
• a tax on repurchases of equity
• modernizing the General Anti-Avoidance Rule
• global minimum tax and DST
• technical amendments to GST/HST rules for financial institutions
• providing relief in relation to the GST/HST treatment of payment card clearing services
• extending the quarterly duty remittance option to all licensed cannabis producers
• revised Luxury Tax draft regulations to provide greater clarity on the tax treatment of luxury items
• technical tax amendments to the ITA and the Income Tax Regulations
• legislative amendments to implement changes discussed in the transfer pricing consultation paper released on June 6, 2023
• tax measures announced in the 2023 budget, including the dividend received deduction by financial institutions
• substantive CCPCs
• technical amendments to the ITA and Income Tax Regulations
• legislative amendments to implement the hybrid mismatch arrangements rules announced in the 2021 budget

The budget also reaffirms the government’s commitment to move forward, as required, with technical amendments to improve the certainty and integrity of the tax system.

Integration – Capital gains ($)

(taxation year ended December 31, 2024, and $10,000 of capital gains earned after June 24, 2024)

This table shows:

• the income tax deferral (prepayment) if capital gains in excess of $250,000 are earned and retained in a corporation as opposed to being earned directly by an individual
• the tax (cost) if the after-tax corporate income is paid out as a dividend to the shareholder in 2024

The table assumes:

• the individual is in the top marginal tax rate
• no capital gains deductions are available
• the non-taxable portion of the capital gain is distributed as a tax-free capital dividend
• the taxable dividend paid is sufficient to generate a full refund of refundable tax 

Download a PDF

Tax Insights: 2024 Federal budget ─ Supporting housing, raising taxes

Dean Landry

National Tax Leader, PwC Canada

Tel: +1 416 815 5090

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