SE15062 - Non-approved retirement benefits schemes: overseas schemes: Extra Statutory Concession A10: aim

The basic aim of the concession is to give exemption or relief from tax similar to that for “foreign service” in relation to Section 148 ICTA 1988 (see SE13680 and subsequent guidance).

The concession applies to “lump sum relevant benefits” (defined at SE15020). This includes both lump sums received under the rules of an overseas scheme and lump sums received in commutation of pension rights under such a scheme. (The tax treatment of pension commutation payments is dealt with at SE15150).

Note: the concession does not apply to benefits in the form of a pension or annuity; these remain chargeable under Case V of Schedule D.

See SE15063 for the full text of the concession.