SE15035 - Non-approved retirement benefits schemes: persons affected

Sections 595(5) and 596A(2) & (3) ICTA 1988

It is common for a non-approved “retirement benefits scheme” to provide benefits for people other than an employee. The payment of a lump sum or pension to the surviving spouse of an employee who dies in service would be a typical example.

Provision of benefits for any of the following is treated as made to the employee. So employer’s contributions to a scheme providing benefits for these people are also chargeable on the employee (see SE15040):

• the employee’s wife or widow
• the employee’s children
• dependants of the employee
• the personal representatives of the employee

Where benefits are paid out of a non-approved scheme and an assessment is necessary (see SE15100), the recipient is assessed:

• where the recipient is an individual, that individual is assessed under Schedule E
• where the recipient is not an individual (for example, a company or club) the administrator of the scheme (see SE15036) is assessed under Case VI of Schedule D

For the year of assessment, see SE15038