TaxSource Total

Here you can access summary of the key current tax developments in Ireland, the UK and internationally as reported by Chartered Accountants Ireland

The report of key tax developments are displayed per year, per month, by Ireland, the UK or International and by report title

Lump Sums Paid to Pension Scheme Members

HMRC published its view on the tax and National Insurance treatment of lump sums paid to pension scheme members in return for giving up their benefit rights.

Some employers have offered or are offering inducements or incentives (inducement payments) to members of defined benefit occupational pension schemes to agree to a reduction in their benefits or to a transfer out of the defined benefit scheme to a defined contribution scheme.

HMRC has been asked for advice by a number of different employers on the taxation and National Insurance (NI) position of those inducement payments. Their views reproduced at Section 2.10.