EIM15051 - Non-approved and employer-financed retirement benefits schemes: contributions made by employee

For non-approved schemes (see EIM15020):

Contributions made by an employee to a non-approved retirement benefits scheme:

• are not assessable on the employee
• do not qualify for tax relief. The only exception to this is in relation to a scheme that has received corresponding approval status from Pensions Schemes Services (PSS), see EIM32661.
• do not give rise to a charge under Section 394 ITEPA 2003 (other than as a pension under Part 9 ITEPA 2003 see EIM15100).

For employer-financed schemes (see EIM15010):

• Where a lump sum is received from an employer-financed scheme and an employee has made contributions towards its provision, the taxable sum is reduced by the total of those contributions.
• Once a contribution has reduced a charge, that same contribution cannot be used to reduce any other charge later on.

It is the taxpayer’s responsibility to show that contributions qualify.