Non-approved schemes: tax charges
Sections 386, 393 and 394(1) ITEPA 2003
A tax charge arises where there is a lump sum receipt from a non-approved scheme (see definition in EIM15402) before 6 April 2006 and where an employer makes a contribution to a non-approved scheme before 6 April 2006 (see EIM15412).
The above guidance is subject to the following qualifications:
- Pension income is always charged under Part 9 ITEPA 2003 (see EIM74000 and subsequent guidance)
- Some receipts are excluded from charge in whole or in part (see EIM15422)
Contributions by the employee may need to be taken into account (see EIM15422).