EIM15420 - Non-approved schemes: cash benefits received

Section 393(2) ITEPA 2003

Most benefits from non-approved schemes are paid as a lump sum. However, they may also take the form of a pension, an annuity or an annual payment or be in non-cash form. These various payments are dealt with as follows:

• where the benefit is paid as a pension, or is any other kind of income within Part 9 ITEPA 2003 (see EIM75000 and subsequent guidance), it is taxed only under that Part; section 394 ITEPA 2003 does not tax any income that falls within Part 9
• where the benefit is paid as an annuity or other annual payment and it is not within Part 9 ITEPA 2003 (see EIM75000 and subsequent guidance) it is chargeable to Income Tax
• where the benefit is paid as a lump sum it counts as employment income under section 394 ITEPA 2003, but see EIM15422 for exceptions - such a lump sum is chargeable even if it is not a ‘relevant benefit’ as defined in EIM15403
• where the benefit is in non-cash form, see EIM15421.

See EIM15409 for who is assessed.