Governs the approval and tax treatment of both personal and occupational pension schemes. Section 590 deals with mandatory approval for occupational pension schemes but most schemes are approved as exempt approved schemes that give greater flexibility in terms of the benefits.

1. An amount paid annually (or more frequently) under a family income benefit policy from the time of death to the end of the agreed term. 2. An amount paid monthly (or weekly) under a policy covering disablement from working due to accidental injury or sickness. See SICKNESS BENEFITS.

Single premium life policy paying a guaranteed income for a fixed term, three to five years. At maturity most schemes return the original capital but there are more complex schemes where the return of capital depends on the performance of the underlying assets. A basic rate tax payer is allowed a tax-free income of 5 per cent per annum.

Withdrawal of pension scheme benefits before using balance of fund to purchase a compulsory annuity. Members of smalladministrated pension schemes, personal pension schemes and occupational schemes with money purchase benefits or additional voluntary contributions can delay the purchase of a pension until age 75 while withdrawing regular sums from their pension fund subject to certain maximum and minimum amounts. The individual can still take a tax-free lump at retirement leaving the balance for drawdown and the retirement annuity purchase by age 75.