EIM15432 - Non-approved schemes: example: non-cash receipts
On 1 July 2005, a company marks a director바카라 사이트檚 retirement by giving him a car valued at 拢25,000. The receipt falls before 6 April 2006 so the rules relating to non-approved schemes apply and not the rules relating to employer-financed schemes (see EIM15010).
The receipt is in non-cash form and so is not a 바카라 사이트榬elevant benefit바카라 사이트� for that purpose (see EIM15403 and EIM15421). It follows that the receipt is not from a non-approved 바카라 사이트渞etirement benefits scheme바카라 사이트� as defined in EIM15402. So no charge under s394 ITEPA 2003 arises.
If, as well as giving the car, the employer gave cash, then the scheme would include a 바카라 사이트�바카라 사이트榬elevant benefit바카라 사이트�바카라 사이트� - because the cash is a lump sum given on retirement (see the definition in EIM15402). Because the scheme includes a 바카라 사이트榬elevant benefit바카라 사이트� (the cash lump sum) it is within the definition of a non-approved retirement benefits scheme. It follows that Section 394 ITEPA 2003 taxes both the cash and the value of the car (see EIM15421 for guidance on determining that value).