(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)
[PN Glossary]
There is no objection to the lump sum death in service
benefit being used in whole or in part to reimburse the employer
for a debt due from the employee at the date of his or her death.
The debt need not result from the employee's fraud or negligence,
as the ban on the assignment/surrender of benefits in section
590(3)(d) ICTA 88 covers only pension benefits (see also
PSI6.1.22-25 and
PSI8.1.11).
