Commentary on Sections Example 3 Ne = £5,000; Da = 183; De = 183; Smg = 0 Section 407: Exception for payments and benefits under tax-exempt pension schemes
1768.This section provides an exception where the payment is made or benefit provided through certain pension schemes and is due to a change in or termination of employment owing to ill health. This exception derives from paragraph 4 of Schedule 11 to ICTA.
1769.The payment or benefit referred to in subsection (1)(b) will usually be a commutation payment calculated by reference to past service.