EIM15082 - Employer-financed retirement benefits schemes: Extra-Statutory Concession A10: aim

The basic aim of the concession is to give exemption or relief from tax similar to that for foreign service in relation to Section 401 ITEPA 2003 (see EIM13680and subsequent guidance).

The concession applies to lump sum relevant benefits (defined at EIM15021). This includes both lump sums received under the rules of an overseas employer-financed retirement benefits scheme and lump sums received in commutation of pension rights under such a scheme. (The tax treatment of pension commutation payments is dealt with at EIM15150).

Note: the concession does not apply to benefits in the form of a pension or annuity; these remain chargeable as pension income.

See EIM15083 for the full text of the concession.