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

Provision of pensions advice: limited exemption

Section 308C provides a limited income tax exemption for pensions-related advice or information provided to employees, former employees, or prospective employees, subject to a £500 annual cap and certain qualifying conditions.

• Employer-provided pensions advice is exempt from income tax up to £500 per employee per tax year, whether given directly or reimbursed
• The exemption applies only if the advice is offered under a scheme open to all employees generally, or to all employees at a particular location (Condition A), or to those who have reached the minimum qualifying age or meet the ill-health condition (Condition B)
• The minimum qualifying age is the employee's relevant pension age minus five years, and the ill-health condition requires medical evidence of permanent incapacity
• Where an individual has more than one employer or former employer in a tax year, the £500 exemption applies separately in respect of each employment