Section 408 ITEPA 2003

Before 6 April 2006

As part of the arrangements on termination of an employment, employer and employee may reach an agreement that the employer:

makes a contribution into a tax-exempt pension scheme (see EIM13660), or

makes a contribution into an approved personal pension scheme (see EIM01570)

for the employee's benefit. Normally this means an adjustment to the termination payment.

These payments are not charged under Section 401 ITEPA 2003 provided that CAR Pension Schemes Services confirms that they do not breach any approval rules.

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