A payment may be taxable as employment income under the rules for ‘employer-financed retirement benefits schemes’ (EFRBS) - formerly, such schemes were called ‘non-approved retirement benefit schemes’ - even if it is labelled as (for example) being on account of redundancy. The tax treatment will depend on a correct interpretation of the underlying facts. The Revenue gave their interpretation of how this legislation should be applied in SP 13/91, Ex gratia awards made on termination of an office or employment by retirement or death, though that statement does not apply from 6 April 2006 (HMRC Brief 17/07).

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