Post retirement benefits

September 2007

On Budget Day the Revenue clarified its position regarding the provision of continuing benefits to retired employees. The following benefits will not be taxable. The first tax year affected by this announcement is the year ending 5 April 2007.

Non-taxable benefits are:

1. Continued provision by former employers of accommodation and related removal expenses.

2. Welfare counselling.

3. Recreational benefits.

4. Annual parties and similar functions costing up to £150.

5. Equipment for disabled employees.

6. Writing of wills costing up to £150.

7. Benefits where the right to the continuing benefit arose on retirement BEFORE 6 April 1998.