PSI17.2.26 - Tax Treatment of Approved Schemes and Payments by Approved Schemes: Taxation of Payments to Scheme Members - Serious Ill Health Commutation - Widows’, Widowers’ And Dependants’ Pensions

(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)

[PN17.27 & PN6A.11]

Section 599 ICTA 1988 applies only to the employee or ex-spouse members’ own pension and so no tax is chargeable on widows’, widowers’ or dependants’ pensions which are commuted for triviality. Widows’, widowers’ or dependants’ pensions are not commutable for serious ill health or indeed in any other circumstances (see PSI8.3.20, PSI12.1.34 and PSI24.1.5).