What is the main tax advantage of establishing a health trust for employers?

Establishing a health trust can provide significant tax advantages to employers, one of which is the provision of healthcare insurance without incurring Insurance Premium Tax (IPT). By setting up a health trust, employers can create a mechanism to fund healthcare benefits for employees in a tax-efficient manner. This enables them to pay for insurance coverage without the extra burden of IPT, which can represent a considerable cost-saving compared to traditional insurance policies.

In contrast, the other options do not accurately reflect the main tax advantages related to health trusts. For example, corporate tax rates or VAT exemptions are not specifically tied to the establishment of health trusts in the same way that IPT is. While tax deductions on employee salaries may offer certain benefits, they do not directly relate to the advantages provided by a health trust focused on healthcare insurance. Therefore, the correct answer emphasizes the effective cost management aspect of using health trusts in providing healthcare benefits.