Taxes Consolidation Act 1997 section 790

Liability of certain pensions, etc to tax

Section 790 provides that voluntary pensions and annuities paid by a former employer to an ex-employee or their family members are treated as taxable income.

• A pension, annuity or other annual payment paid after an individual has left an office or employment is chargeable to income tax, even if it is paid voluntarily or can be discontinued at any time.
• The charge applies whether the payment is made to the former office holder or employee, or to their widow, widower, surviving civil partner, children (including children of the surviving civil partner), relatives or dependants.
• The payer may be the former employer, or the employer's heirs, executors, administrators or successors.
• The payment is assessed and charged under Schedule D or Schedule E, as appropriate.