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HMRC internal manual

Employment Income Manual

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).