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.|