393Application of this Chapter

1

This Chapter applies to relevant benefits provided under an employer-financed retirement benefits scheme.

2

Section 393A defines “employer-financed retirement benefits scheme” and section 393B defines “relevant benefits”.

393AEmployer-financed retirement benefits scheme

1

In this Chapter “employer-financed retirement benefits scheme” means a scheme for the provision of benefits consisting of or including relevant benefits to or in respect of employees or former employees of an employer.

2

But neither—

a

a registered pension scheme, nor

b

a section 615(3) scheme,

is an employer-financed retirement benefits scheme.

3

“Section 615(3) scheme” means a superannuation fund to which section 615(3) of ICTA applies.

4

“Scheme” includes a deed, agreement, series of agreements, or other arrangements.

393BRelevant benefits

1

In this Chapter “relevant benefits” means any lump sum, gratuity or other benefit (including a non-cash benefit) provided (or to be provided)—

a

on or in anticipation of the retirement of an employee or former employee,

b

on the death of an employee or former employee,

c

after the retirement or death of an employee or former employee in connection with past service,

d

on or in anticipation of, or in connection with, any change in the nature of service of an employee, or

e

to any person by virtue of a pension sharing order or provision relating to an employee or former employee.

2

But—

a

benefits charged to tax under Part 9 (pension income),

b

benefits chargeable to tax by virtue of Schedule 34 to FA 2004 (which applies certain charges under Part 4 of that Act in relation to non-UK schemes), and

c

excluded benefits,

are not relevant benefits.

3

The following are “excluded benefits”—

a

benefits in respect of ill-health or disablement of an employee during service,

b

benefits in respect of the death by accident of an employee during service,

c

benefits under a relevant life policy, and

d

benefits of any description prescribed by regulations made by the Board of Inland Revenue.

4

In subsection (3)(c) “relevant life policy” means—

F1a

an excepted group life policy as defined in section 480 of ITTOIA 2005,

b

a policy of life insurance the terms of which provide for the payment of benefits on the death of a single individual and with respect to whichF2—

i

condition A in section 481 of that Act would be met if paragraph (a) in that condition referred to the death, in any circumstances or except in specified circumstances, of that individual (rather than the death in any circumstances of each of the individuals insured under the policy) and if the condition did not include paragraph (b), and

ii

conditions C and D in that section and conditions A and C in section 482 of that Act are met, or

c

a policy of life insurance that would be within paragraph (a) or (b) but for the fact that it provides for a benefit which is an excluded benefit under or by virtue of paragraph (a), (b) or (d) of subsection (3).

5

In subsection (1)(e) “pension sharing order or provision” means any such order or provision as is mentioned in section 28(1) of WRPA 1999 or Article 25(1) of WRP(NI)O 1999.

1A

Subsection (1) does not apply in relation to the benefit if the total amount of the benefits to which this Chapter applies received by the individual in the relevant tax year does not exceed £100.

395Reduction where employee has contributed

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 F3subsection (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.

399AResponsible person

1

The following heads specify the person who is, or persons who are, the responsible person in relation to an employer-financed retirement benefits scheme for the purposes of this Chapter.

2

But if a person is, or persons are, the responsible person in relation to the scheme by virtue of being specified under one head, no-one is the responsible person in relation to the scheme by virtue of being specified under a later head.

Head 1

If there are one or more trustees of the scheme who are resident in the United Kingdom, that trustee or each of those trustees.

Head 2

If there are one or more persons who control the management of the scheme, that person or each of those persons.

Head 3

If alive or still in existence, the employer, or any of the employers, who established the scheme and any person by whom that employer, or any of those employers, has been directly or indirectly succeeded in relation to the provision of benefits under the scheme.

Head 4

Any employer of employees to or in respect of whom benefits are, or are to be, provided under the scheme.

Head 5

If there are one or more trustees of the scheme who are not resident in the United Kingdom, that trustee or each of those trustees.

400Interpretation

In this Chapter—

• “employer-financed retirement benefits scheme” has the meaning given by section 393A;

• “relevant benefits” has the meaning given by section 393B; and

• “responsible person” has the meaning given by section 399A.

employer-financed retirement benefits scheme (in Chapter 2 of Part 6)

section 393A

relevant benefits (in Chapter 2 of Part 6)

section 393B

responsible person (in Chapter 2 of Part 6)

section 399A