NIM02742 | Earnings of employees and office holders: retirement benefits schemes from 6th April 2006 - overseas pension schemes: superannuation funds to which section 615 ICTA applies: payments out of such funds

Paragraph 11 of Part 6 of Schedule 3 to the Social Security (Contributions)Regulations 2001 (as amended by regulation 8(7) of the Social Security (Contributions)(Amendment No. 2) Regulations 2006, and regulation 4 of the Social Security(Contributions) (Amendment No.5) Regulations 2006)

Section 615(3) ICTA 1988

NIM02741

explains the meaning of a “section 615” scheme.

A payment by way of:

• a pension; or

• an annuity

from a section 615 scheme is disregarded in the calculation of earnings for Class 1NICs purposes.

For details of:

• the Class 1A NICs position, see NIM14510

• the income tax position on lump sum payments from such schemes, see EIM15064.