Section 307 — Income Tax (Earnings and Pensions) Act 2003: Death or retirement benefit provision

Death or retirement benefit provision 307 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 under a registered pension scheme or otherwise for a retirement or death benefit. 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 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 paid or given in respect of the employee to any other individual or to a charity, in the event of the employee’s retirement or death.