SE15100 - Non-approved retirement benefits schemes: cash benefits received

Section 596A ICTA 1988

Benefits from a “retirement benefits scheme” may take the form of a lump sum payment, a pension or an annuity. These are dealt with as follows:

1.

where the benefit is paid as a pension, it is Schedule E income (Section 19 (1)3 ICTA 1988) or, if it is paid from a scheme outside the UK, Schedule D income (Section 58 ICTA 1988)

2.

where the benefit is paid as an annuity or other annual payment it is income under Case III Schedule D

3.

where the benefit is paid as a lump sum it is Schedule E income under Section 596A ICTA 1988, but see SE15122 for exceptions. Note that such a lump sum is chargeable even if it is not a "relevant benefit" as defined in SE15020.

See SE15035 for who is assessed.