The Regulations prescribe that members of certain foreign pension schemes are not liable to tax on amounts counting as employment income under part 7A of the Income Tax (Earnings and Pensions) Act 2003 when their employer provides rewards, recognition or loans under the scheme in connection with the member's employment.
The Regulations increase the amount that an employer may pay to an employee without incurring liability to income tax, where the employee uses a privately-owned car or van, to 45p per mile for the first 10,000 miles of business travel, and 25p per mile of business travel after that.
The Regulations prescribe that where an employer makes payments to an employee after the employment contract has terminated and the payments are not included on the P45, they are taxable using the 0T tax code on a non-cumulative basis.
The Regulations supplement the Taxation of Pension Schemes (Transitional Provisions) (Amendment) Order 2011 (SI 2011/732), by removing a tax charge where an individual, who is aged from 50 to 54, and who started drawing a pension before 6 April 2010, changes his or her pension provider after this date but before he or she is aged 55.
The Order prescribes that, where an individual is entitled to a tax-free lump sum from his or her pension scheme of more than 25% of the fund's value, or to a protected pension age, there is a period of six months to arrange for payment of the associated benefits.
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