Income Tax (Earnings and Pensions) Act 2003 section 392

Relief where no benefits are paid or payable

Section 392 provides a mechanism for claiming tax relief where an employee (or their personal representatives) has been taxed on contributions to a non-approved retirement benefits scheme but ultimately receives no benefits from that scheme.

• Where an employee has been charged to tax on employer contributions to a non-approved retirement benefits scheme but no benefits are ultimately paid, an application for relief can be made.
• The application for relief is made to HMRC, who will consider and determine the claim.
• The employee themselves may make the application, but if the employee has died, their personal representatives may apply instead — reflecting longstanding HMRC practice now formally written into law.
• This provision ensures that individuals are not left bearing a tax charge on scheme contributions where no corresponding benefit is ever received.