Part 6Employment income: income which is not earnings or share-related

Chapter 3Payments and benefits on termination of employment etc.

Exceptions and reductions

408Exception for contributions to tax-exempt pension schemes

1

This Chapter does not apply to a contribution to a tax-exempt pension scheme or approved personal pension arrangements if the contribution is made—

a

as part of an arrangement relating to the termination of a person’s employment, and

b

in order to provide benefits for the person in accordance with the terms of the scheme or approved personal pension arrangements.

2

For this purpose—

  • “tax-exempt pension scheme” has the same meaning as in section 407(2), and

  • “approved” and “personal pension arrangements” have the meaning given by section 630(1) of ICTA.