Income Tax (Earnings and Pensions) Act 2003 section 308A

Exemption of contributions to overseas pension scheme

Section 308A provides an income tax exemption for employer contributions made to a qualifying overseas pension scheme on behalf of an employee who is a relevant migrant member of that scheme.

• Employer contributions to a qualifying overseas pension scheme are exempt from income tax as earnings of the employee
• The exemption only applies where the employee is a relevant migrant member of the pension scheme
• A qualifying overseas pension scheme and relevant migrant member are concepts defined in Schedule 33 to the Finance Act 2004, which deals with migrant member relief for overseas pension schemes
• The exemption ensures that employees who have moved to the UK and remain members of an overseas pension scheme are not taxed on their employer's ongoing contributions to that scheme