Employer Financed Retirement Benefits Schemes - List of benefits excluded from tax charge extended

View the next news item for Pension Schemes
View the previous news item for Pension Schemes

3 January 2008

Draft Regulations were issued by HMRC with the 2007 Budget documents that would add to the list of benefits which, if provided to retired employees from a non-registered pension scheme, would be treated as "excluded benefits" and, as a result, would not be subject to a tax charge.

The final version of the Employer-Financed Retirement Benefits (Excluded Benefits for Tax Purposes) Regulations 2007 were made on 14 December and come into force on 8 January 2008. However, the exclusions apply retrospectively to benefits provided in tax year 2006/07 and onwards.

The long list of benefits that are now treated as exempt from tax include:

non-cash benefits in respect of terminations that occurred before 6 April 1998
the provision of certain specified living accommodation
removal expenses and related insurances in connection with exempt living accommodation
repairs and alterations to employment-related living accommodation
payment of council tax on exempt living accommodation
welfare counselling
recreational benefits
annual parties or similar annual functions
the provision of will-writing services
the provision of equipment for disabled former employees.