Part 6Employment income: income which is not earnings or share-related
Chapter 2Benefits from F5employer-financed retirement benefits
Benefits treated as employment income
393BF3Relevant 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
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 which F6—
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).
F44A
Regulations under subsection (3)(d) may include provision having effect in relation to times before they are made.
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.
Words in Pt. 6 Ch. 2 heading substituted (6.4.2006) by Finance Act 2004 (c. 12), ss. 249(2), 284(1) (with Sch. 36)