The Public Committee has agreed further amendments to the disguised remuneration provisions in the Finance Bill. The key change in respect of pensions is the introduction of a new chapter 3 into part 7A of the Income Tax (Earnings and Pensions) Act 2003, dealing with undertakings given by employers in relation to retirement benefits. HMRC is also expected to issue a third draft of its FAQs on the disguised remuneration provisions shortly.

We will be covering the recent changes and the FAQs (once they are issued) as they affect pensions in future e-bulletins.