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HMRC internal manual

National Insurance Manual

HM Revenue & Customs
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Earnings of employees and office holders: retirement benefits schemes from 6th April 2006 - overseas pension schemes: employer's payments that qualify for migrant member relief or transitional corresponding tax relief: benefits referable to s

Paragraph 3(c) of Part 6 of Schedule 3 to the Social Security (Contributions)Regulations 2001 (as substituted by regulation 8(3) of the Social Security (Contributions)(Amendment No. 2) Regulations 2006)

Paragraph 2 of Schedule 33 to the Finance Act 2004

Article 15 of the Taxation of Pension Schemes (Transitional Provisions) Order 2006 (SI2006/572)

NIM20731 explains that a payment by way of an employer’s payment to which either:

  • paragraph 2 of Schedule 33 (tax relief for employer contributions to a qualifying overseas pension scheme); or
  • article 15 of the above Order (employers with pre-commencement entitlement to corresponding relief)

applies, is disregarded in the calculation of earnings for Class 1 NICs purposes.

Also disregarded in the calculation of earnings is any benefit which is referable to anemployer’s payment to which either of the above provisions applies.

For details of:

  • the Class 1A NICs position, see NIM14510
  • certain tax charges that might apply to such benefits, see RPMS13101010.
  Words in bold are defined in the Glossary to the Registered Pension Schemes Manual (RPSM20000000). They have the same meaning for NICs purposes unless otherwise stated.