EIM15125 - Employer-financed retirement benefits schemes: receipts excluded from charge: prior employer contributions made only before 6 April 2006
Paragraphs 53 and 54(1) - (2)(a) Schedule 36 FA 2004
Note: This guidance applies only to receipts from a
employer-financed retirement benefits scheme (see EIM15020) and so
applies only on or after 6 April 2006. If dealing with a receipt
before that date, see EIM15121 for non-approved schemes
A lump sum received after 5 April 2006 that is otherwise
chargeable under Section 394 ITEPA 2003 (see
EIM15010) is not chargeable if the
employer has made no contributions to the scheme after 5 April 2006
provided that:
- The employee has been taxed on employer contributions made before 6 April 2006 under Section 595 ICTA 1988 or Section 386 ITEPA 2003 (see SE15040 and EIM15040 respectively) and
- All of the income and gains of the scheme (whether as a non-approved scheme before 6 April 2006 or as an employer-financed scheme after on or after that date) have been within the charge to UK tax and
- The lump sum is provided to the employee, a relative (see below) of the employee, the personal representatives of the employee, an ex-spouse of the employee, (from 5 December 2005) a former civil partner of the employee (see below) or any other individual designated by the employee
Or
- The scheme was entered into before 1 December 1993 and has not been varied since then (see EIM15060 for the meaning of “varied”)
“Relative” means wife, husband or civil partner,
widow, widower or surviving civil partner, child or dependant
“Former civil partner” means a member of a civil
partnership that has been dissolved or annulled
Note:
