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HMRC internal manual

Employment Income Manual

Non-approved schemes: definition of "relevant benefits"

Section 612(1) ICTA 1988

‘Relevant benefits’ are defined as any pension, lump sum, gratuity or other like benefit given:

  • on retirement (see EIM15404) or on death (see example EIM15435), or
  • in anticipation of retirement (see EIM15426), or
  • after retirement or death in connection with past service (see EIM15426), or
  • on or in anticipation of or in connection with any change in the nature of the employee’s service (see EIM15426) or
  • by virtue of a pension sharing order or provision

Only cash benefits count as ‘relevant benefits’ (see example at EIM15432).

But the definition did not include benefits provided solely by reason of an employee’s disablement or death by accident occurring whilst he or she is in the employer’s service (see example EIM15436) nor benefits provided on ill-health (see EIM15405).