Employer-financed retirement benefits schemes: ill-health and disablement
Section 393B(3)(a) Income Tax (Earnings and Pensions Act) 2003
[Notice: the guidance on this page should be read with the notice at the top of EIM15015.]
A payment that has the character of a ‘relevant benefit’ under an employer financed retirement benefits scheme (EFRBS) is not chargeable under the EFRBS provisions if it is made in respect of ill-health or disablement of an employee during service. It is excluded from the definition of a relevant benefit and only relevant benefits paid from an EFRBS are charged by section 394 ITEPA 2003. See EIM15021.
Such a payment may be chargeable only under section 401 ITEPA 2003 subject to any claim to the disability exception (see EIM13610).