Commentary on Sections Example 3 £150(Pe) – £50(E) = £100 Section 308: Exemption of contributions to approved personal pension arrangements
1278.This section provides there is no liability to income tax on contributions by an employer under approved personal pension arrangements made by the employee. It derives from section 643(1) of ICTA.
1279.Subsection (1) provides there is no liability to income tax on such contributions as earnings.
1280.Subsection (2) sets out relevant definitions by cross-reference to section 630(1) of ICTA.
1281.A personal pension scheme may be approved by the Board of Inland Revenue under section 631 of ICTA, in accordance with the rules in Chapter 4 of Part 14 of that Act.