Parliamentary Search

Written question asked by Tom Harris (Labour) on Friday, 10 December 2010, in the House of Commons. It was due for an answer on Tuesday, 14 December 2010. It was answered by Mark Hoban (Conservative) on Monday, 20 December 2010 on behalf of the Treasury.

Taxation: Pensioners

Question
To ask the Chancellor of the Exchequer whether discretionary awards of (a) a lump sum and (b) annual compensation made to former employees by local authorities in accordance with part III of the Local Government (Discretionary Payments and Injury Benefits) (Scotland) Regulations 1998 will be (i) treated by HM Revenue and Customs as pension payments for the purposes of the revised annual allowance and life time allowance and (ii) taxable under the reformed system for pensions tax relief to be introduced from April 2011.
Answer

The tax treatment of any payment under the Local Government (Discretionary Payments and Injury Benefits) (Scotland) Regulations 1998 will depend on the nature of the particular payment and how it is paid. If paid out of the local government superannuation scheme, it will be subject to the registered pension scheme tax rules whether paid before or after April 2011, including any potential interaction with the annual allowance and lifetime allowance.This is a complex area and if the hon. Member wants further information about the tax treatment of these sorts of payments then I suggest he contacts HMRC at:"pensions.policy@hmrc.gsi.gov.uk"

Secondary information

Type
Written question
Reference
30927; 520 c975W
Session
2010-12
Subjects
Local government Pensions
Link
View this Written question on www.publications.parliament.uk