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We are acting for client that is terminating the employment contract for one of its senior executives. The executive concerned is due a sizeable settlement (well in excessive of £30,000) which will be taxable. He has asked whether a proportion of the settlement due to him can be made as a contribution into his personal pension plan. Is this possible and will it give rise to any problems with HMRC.Thanks for your help.
Optional Information: Province/Country relating to question: UK
Hello,It is possible, see here: http://www.hmrc.gov.uk/manuals/eimanual/eim13735.htmHope this clarifies
Experience: solicitor