PSI8.3.11 - Commutation for Triviality or Serious Ill Health: Conditions

(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)

There are two conditions which apply to the concession in PSI 8.3.10. They are that either:

1. the administrator of the fund should make no reduction in the amount of commutation payment made to the employee on account of any income tax borne by the administrator when making the payment; or
2. the employee, having been made aware of the tax consequences, has agreed to the commutation payment.