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Chapter 5 | |
United Kingdom social security pensions | |
577 United Kingdom social security pensions | |
(1) This section applies to— | |
the state pension, | 5 |
graduated retirement benefit, | |
industrial death benefit, | |
widowed mother’s allowance, | |
widowed parent’s allowance, and | |
widow’s pension. | 10 |
(2) In this section— | |
“state pension” means any pension payable under— | |
(a) section 44, 48A, 48B, 48BB, 51 or 78 of SSCBA 1992, or | |
(b) section 44, 48, 48B, 48BB, 51 or 78 of SSCB(NI)A 1992; | |
“graduated retirement benefit” means any benefit payable under— | 15 |
(a) section 36 or 37 of the National Insurance Act 1965 (c. 51), or | |
(b) section 35 or 36 of the National Insurance Act (Northern | |
Ireland) 1966 (c. 6 (N.I.)); | |
“industrial death benefit” means any benefit payable under— | |
(a) section 94 of, and Part 6 of Schedule 7 to, SSCBA 1992, or | 20 |
(b) section 94 of, and Part 6 of Schedule 7 to, SSCB(NI)A 1992; | |
“widowed mother’s allowance” means any allowance payable under— | |
(a) section 37 of SSCBA 1992, or | |
(b) section 37 of SSCB(NI)A 1992; | |
“widowed parent’s allowance” means any allowance payable under— | 25 |
(a) section 39A of SSCBA 1992, or | |
(b) section 39A of SSCB(NI)A 1992; | |
“widow’s pension” means any pension payable under— | |
(a) section 38 of SSCBA 1992, or | |
(b) section 38 of SSCB(NI)A 1992. | 30 |
(3) In subsection (2), in paragraph (b) of the definition of state pension, the | |
reference to section 48 of SSCB(NI)A 1992 is a reference to the section 48 | |
inserted by paragraph 3(1) of Schedule 2 to the Pensions (Northern Ireland) | |
Order 1995 (S.I. 1995/3213 (N.I. 22)). | |
(4) Chapter 17 of this Part provides a partial exemption for a pension to which this | 35 |
section applies in respect of any part of the pension which is attributable to an | |
increase in respect of a child (see section 645). | |
578 Taxable pension income | |
If section 577 applies, the taxable pension income for a tax year is the full | |
amount of the pension, benefit or allowance accruing in that year irrespective | 40 |
of when any amount is actually paid. | |
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579 Person liable for tax | |
If section 577 applies, the person liable for any tax charged under this Part is | |
the person receiving or entitled to the pension, benefit or allowance. | |
Chapter 6 | |
Approved retirement benefits schemes | 5 |
Pensions and annuities | |
580 Pensions and annuities | |
This section applies to— | |
(a) any pension or annuity paid under a retirement benefits scheme which | |
is either approved or being considered for approval, and | 10 |
(b) any annuity acquired using funds held for the purposes of a retirement | |
benefits scheme which is either approved or being considered for | |
approval. | |
581 Taxable pension income | |
If section 580 applies, the taxable pension income for a tax year is the full | 15 |
amount of the pension or annuity accruing in that year irrespective of when | |
any amount is actually paid. | |
582 Person liable for tax | |
If section 580 applies, the person liable for any tax charged under this Part is | |
the person receiving or entitled to the pension or annuity. | 20 |
Unauthorised payments | |
583 Unauthorised payments | |
(1) This section applies to a payment if conditions A, B and C are met. | |
(2) But this section does not apply to a payment to which section 623 applies. | |
(3) Condition A is that the payment— | 25 |
(a) is made out of funds which are held for the purposes of an approved | |
retirement benefits scheme (“the paying scheme”), but | |
(b) is not expressly authorised— | |
(i) by the rules of the paying scheme, or | |
(ii) by virtue of paragraph 33 of Schedule 6 to FA 1989. | 30 |
(4) Condition B is that the payment is not made in the course of payment of a | |
pension or annuity. | |
(5) Condition C is that the payment is made to or for the benefit of— | |
(a) an employee, or | |
(b) an ex-spouse of an employee. | 35 |
(6) A payment to which this section applies is not to be charged to tax under— | |
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(a) section 598 or 599 of ICTA, or | |
(b) the Regulations mentioned in paragraph 8 of Schedule 3 to FA 1971. | |
(7) In this section “payment” includes— | |
(a) a transfer of assets, and | |
(b) any other transfer of money’s worth. | 5 |
584 Taxable pension income | |
If section 583 applies, the taxable pension income for a tax year is the total | |
amount or value of the payments made in that year. | |
585 Person liable for tax | |
If section 583 applies, the person liable for any tax charged under this Part is | 10 |
the person mentioned in condition C in section 583(5) to whom, or for whose | |
benefit, the payment is made. | |
Interpretation etc. | |
586 Meaning of “retirement benefits scheme” etc. | |
(1) In this Chapter— | 15 |
“retirement benefits scheme” has the meaning given in section 611 of | |
ICTA; | |
“approved”, in relation to such a scheme, means that the scheme is | |
approved by the Board of Inland Revenue for the purposes of— | |
(a) Chapter 2 of Part 2 of FA 1970, or | 20 |
(b) Chapter 1 of Part 14 of ICTA. | |
(2) Any reference in this Chapter to a pension or annuity paid under a retirement | |
benefits scheme includes a reference to a pension or annuity paid under a | |
contract which— | |
(a) is made for purposes of the scheme, and | 25 |
(b) is made between— | |
(i) the administrator of the scheme, | |
(ii) the employer, or | |
(iii) the employee or an ex-spouse of the employee, | |
and a third party. | 30 |
(3) In subsection (2) the reference to the employer is a reference to the person who | |
is the employer in relation to the scheme. | |
(4) In subsection (2)(b)(i) “administrator of the scheme” is to be construed in | |
accordance with section 611AA of ICTA. | |
(5) References in this Chapter to approved retirement benefits schemes are | 35 |
extended by section 587 (marine pilots’ benefit fund). | |
587 Application to marine pilots’ benefit fund | |
(1) In this Chapter the expression “approved retirement benefits scheme” includes | |
a marine pilots’ benefit fund which is approved by the Board of Inland | |
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(1) Revenue under section 607 of ICTA for the purposes of Chapter 1 of Part 14 of | |
ICTA. | |
(2) In any case where the paying scheme for the purposes of section 583(3) is a | |
pilots’ benefit fund, the references in section 583(5) to an employee are to be | |
read as references to a member or former member of the fund. | 5 |
(3) In this section “marine pilots’ benefit fund” means— | |
(a) a fund established under section 15(1)(i) of the Pilotage Act 1983 (c. 21), | |
or | |
(b) any scheme supplementing or replacing any such fund. | |
588 Meaning of “employee” and “ex-spouse” | 10 |
(1) In this Chapter— | |
“employee”— | |
(a) includes a person who is to be, or has been, an employee, and | |
(b) in relation to a company, includes any officer or director of the | |
company and any other person taking part in the management | 15 |
of the affairs of the company; | |
“ex-spouse” means a party to a marriage which has been dissolved or | |
annulled and, in relation to any person, means the other party to a | |
marriage with that person which has been dissolved or annulled | |
(2) For the purposes of the definition of “employee” in subsection (1), “director”, | 20 |
in relation to a company, includes— | |
(a) in the case of a company the affairs of which are managed by a board | |
of directors or similar body, a member of that board or body, | |
(b) in the case of a company the affairs of which are managed by a single | |
director or similar person, that person, | 25 |
(c) in the case of a company the affairs of which are managed by the | |
members themselves, a member of that company; | |
and includes a person who is to be or has been a director. | |
589 Regulations | |
The Board of Inland Revenue may make regulations generally for the purpose | 30 |
of carrying the preceding provisions of this Chapter into effect. | |
Chapter 7 | |
Former approved superannuation funds | |
Annuities | |
590 Annuities | 35 |
This section applies to— | |
(a) any annuity paid under a former approved superannuation fund, and | |
(b) any annuity acquired using funds held for the purposes of a former | |
approved superannuation fund. | |
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