Employer-financed retirement benefits schemes: contributions made by employee
Section 395 ITEPA
[Notice: the guidance on this page should be read with the notice at the top of EIM15015]
Where a lump sum is received from an employer-financed retirement benefits scheme (see EIM15010) and an employee has made contributions towards its provision, the taxable sum is reduced by the total of those contributions. Once a contribution has reduced a charge, that same contribution cannot be used to reduce any other charge later on.
It is the taxpayer’s responsibility to show that contributions qualify.