Income Tax (Earnings and Pensions) Act 2003

Chapter 9 U.K. Exemptions: pension provision

307 Death or retirement benefit provision U.K.

(1) 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 [F1 under a registered pension scheme or otherwise] for a retirement or death benefit.

[F2 (1A) Subsection (1) does not apply to provision made for insuring against the risk that a retirement or death benefit under an employer-financed retirement benefits scheme cannot be paid or given because of the employer’s insolvency.

(1B) In subsection (1A) “employer-financed retirement benefits scheme” has the same meaning as in Chapter 2 of Part 6 (see section 393A).]

(2) In [F3 this section] “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.

Textual Amendments

F1 Words in s. 307(1) inserted (6.4.2006) by Finance Act 2004 (c. 12), ss. 201(1), 284(1) (with Sch. 36)

F2 S. 307(1A)(1B) inserted (6.4.2006) by Finance Act 2004 (c. 12), ss. 248(2), 284(1) (with Sch. 36)

F3 Words in s. 307(2) substituted (6.4.2006) by Finance Act 2004 (c. 12), ss. 248(3), 284(1) (with Sch. 36)

Modifications etc. (not altering text)

C1 S. 307 applied (with effect in accordance with reg. 1(2) of the amending S.I.) by The Pension Protection Fund (Tax) (2005-06) Regulations 2005 (S.I. 2005/1907), regs. 1(1), 14

C2 S. 307 applied (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 40

[F4 308 Exemption of contributions to registered pension scheme U.K.

No liability to income tax arises in respect of earnings where an employee’s employer makes contributions under a registered pension scheme.]

Textual Amendments

F4 S. 308 substituted (6.4.2006) by Finance Act 2004 (c. 12), ss. 201(2), 284(1) (with Sch. 36)

[F5 308A Exemption of contributions to overseas pension scheme U.K.

(1) No liability to income tax arises in respect of earnings where an employer makes contributions under a qualifying overseas pension scheme in respect of an employee who is a relevant migrant member of the pension scheme.

(2) In subsection (1)—

• “qualifying overseas pension scheme”, and

• “relevant migrant member”,

• have the same meaning as in Schedule 33 to FA 2004 (overseas pension schemes: migrant member relief).]

Textual Amendments

F5 S. 308A inserted (6.4.2006) by Finance Act 2004 (c. 12), s. 284(1), Sch. 33 para. 3 (with Sch. 36)

Modifications etc. (not altering text)

C3 S. 308A applied (6.4.2006) by The Taxation of Pension Schemes (Transitional Provisions) Order 2006 (S.I. 2006/572), arts. 1(1), 17(4)