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Thanks so much for the reply. The company contract pension queries to outside sources.
Just to confirm Tony, my contract of employment states 2 years salary will be paid in the event of losing my medical licence through a loss of licence scheme. An insurer has paid the lump sum out to my employer who will pay me through PAYE. HMRC has confirmed that the lump sum will be taxable. I just wish to know if the lump sum be regarded as pensionable earnings so that I can put most the lump sum into the pension. I don't fancy being stung for tax later. I really appreciate all your help. Thanks
Thanks for the information confirming that the lump would be pensionable.
I had originally tried for exemption of the whole lump sum under the disability exemption EIM13630 (Hasted v Horner) as I had a mini-stroke.I could not work as an air traffic controller and was given my 3 months contractual notice period.
HMRC looked into all the documentation and my employment contract but said all was taxable as the loss of licence payment and the 3 month notice payment was contractual.