We have a prospective client who has been working overseas for some years for a UK company. He has an occupational pension related to this overseas employment. He is under the impression that, because this pension has been accruing while he was abroad, 10% of it is exempt from UK tax. I've had a scan through Tolleys but can't find anything that might give rise to this 10% exemption.
Any thoughts as to where this comes from? It doesn't ring any bells with me - is it an obsolete provision or have I just missed it?
Thanks in advance.