Income Tax (Earnings and Pensions) Act 2003 section 637F

Refund of excess contributions lump sums

Section 637F provides that refund of excess contributions lump sums paid from registered pension schemes are free from income tax.

  • A refund of excess contributions lump sum is a specific type of payment from a registered pension scheme.
  • No income tax liability arises on such a refund.
  • The exemption applies only where the lump sum is paid under a registered pension scheme.
  • This provision was introduced by Finance Act 2024, Schedule 9, paragraph 41.

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