No liability to income tax arises by virtue of Chapter 10 of Part 3 (taxable benefits: residual liability to charge) in respect of provision made by an employee’s employer for a retirement or death benefit.

In subsection (1) “retirement or death benefit” means a pension, annuity, lump sum, gratuity or other similar benefit which will be paid or given to the employee or a member of the employee’s family or household in the event of the employee’s retirement or death.

No liability to income tax arises in respect of earnings where an employer makes contributions under approved personal pension arrangements made by an employee.

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