(This archived guidance relates to HMRC discretionary
practice before the 6th April 2006. For current guidance on
Registered Pension Schemes see the Registered Pension Schemes
Manual)
[PSO Update No5]
It is not generally acceptable to base final remuneration on
notional pay which, it is claimed, the employee would have received
if circumstances had been different. Let your Section Manager see
any claim that contractual increases due under a service agreement
should be included in the calculation of final remuneration. The
most common exception to this general rule is where the employee is
on long-term secondment overseas (see
PSI15.2.5) when a notional
rate of remuneration may be used.
