[F1395Reduction where employee has contributedU.K.
(1)This section applies in relation to a relevant benefit under an employer-financed retirement benefits scheme in the form of a lump sum where, under the scheme, an employee has paid any sum or sums by way of contribution to the provision of the lump sum.
(2)The amount which, by virtue of section 394, counts as employment income, or is chargeable to tax under [F2subsection (2) of that section], is the amount of the lump sum reduced by the sum, or the aggregate of the sums, paid by the employee by way of contribution to the provision of the lump sum.
(3)A reduction under this section may not be claimed in respect of the same contribution in relation to more than one lump sum.
(4)It is to be assumed, unless the contrary is shown, that no reduction is applicable under this section.]
Textual Amendments
F1S. 395 substituted for ss. 395-397 (6.4.2006) by Finance Act 2004 (c. 12), ss. 249(8), 284(1) (with Sch. 36)
F2Words in s. 395 substituted by 2004 c. 12, s. 249(8) (as amended (6.4.2006) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 651(3), Sch. 2 para. 161 (with Sch. 2))
Modifications etc. (not altering text)
C1S. 395 modified (22.7.2004) by Finance Act 2004 (c. 12), Sch. 36 paras. 54(3)(b), 55(3) (with s. 283(5), Sch. 36)