EIM15149 - Employer-financed retirement benefits schemes: payments other than on retirement or death
Section 393B ITEPA 2003
As EIM15021 indicates, payments and benefits other than those made on retirement or death can be 鈥榬elevant benefits鈥�. They comprise payments and benefits made:
- in anticipation of retirement. This prevents, for example, avoidance of tax by making a lump sum available before the retirement date. There is no age limit to apply and whether a payment is made in anticipation of retirement is a question of fact. If a payment is clearly linked to retirement or is in substitution for a payment that would have been made on or after retirement then it will be 鈥榠n anticipation of retirement鈥�
- after retirement or death in connection with past service. This means, for example, that payments to retired former employees are relevant benefits
- in connection with any change in the employee鈥檚 service. Such payments are normally chargeable under Section 62 ITEPA 2003 in any event (see EIM00680).
- by virtue of a pension sharing order.