(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)
(This text has been withheld because of exemptions in the
Freedom of Information Act 2000)
[PN Glossary]
It is not uncommon for early retirement to be forced on an
employee because of redundancy. Some employers give a generous
financial package to their redundant employees which may involve
setting up a special redundancy payments scheme. Lump sum
redundancy payments are not relevant benefits and a compensation
scheme that provides a lump sum in a genuine redundancy (rather
than a retirement) situation cannot normally be a retirement
benefits scheme approved or otherwise. This Office has no interest
in such schemes and any enquiry about them should be referred to
the relevant Inspector of Taxes.
