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591 Taxable pension income | |
If section 590 applies, the taxable pension income for a tax year is the full | |
amount of the annuity paid in that year. | |
592 Person liable for tax | |
If section 590 applies, the person liable for any tax charged under this Part is | 5 |
the person receiving or entitled to the annuity. | |
Unauthorised payments | |
593 Unauthorised payments: application of section 583 | |
(1) Section 583 applies to a payment if— | |
(a) the payment is made out of funds which are held for the purposes of an | 10 |
former approved superannuation fund (“the paying fund”), but | |
(b) it is not expressly authorised— | |
(i) by the rules of the paying fund, or | |
(ii) by virtue of paragraph 33 of Schedule 6 to FA 1989, and | |
(c) conditions B and C in section 583(4) and (5) are met. | 15 |
(2) But section 583 does not apply to a payment to which section 623 applies. | |
(3) In this section “payment” includes— | |
(a) a transfer of assets, and | |
(b) any other transfer of money’s worth. | |
(4) If section 583 applies to a payment by virtue of this section, sections 584, 585 | 20 |
and 588 apply accordingly. | |
Interpretation | |
594 Meaning of “former approved superannuation fund” | |
(1) In this Chapter “former approved superannuation fund” means any fund | |
which immediately before 6th April 1980 was an approved superannuation | 25 |
fund for the purposes of section 208 of ICTA 1970. | |
(2) But a fund is not a former approved superannuation fund if any of the | |
following things has happened since 5th April 1980— | |
(a) the fund has been approved by the Board of Inland Revenue for the | |
purposes of Chapter 2 of Part 2 of FA 1970, | 30 |
(b) the fund has been approved by the Board for the purposes of Chapter | |
1 of Part 14 of ICTA, or | |
(c) any sum has been paid to the fund by way of contribution. | |
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Chapter 8 | |
Approved personal pension schemes | |
Annuities | |
595 Annuities | |
This section applies to any annuity acquired using funds held for the purposes | 5 |
of an approved personal pension scheme. | |
596 Taxable pension income | |
If section 595 applies, the taxable pension income for a tax year is the full | |
amount of the annuity received in that year. | |
597 Person liable for tax | 10 |
If section 595 applies, the person liable for any tax charged under this Part is | |
the person receiving or entitled to the annuity. | |
Income withdrawals | |
598 Income withdrawals | |
This section applies to any income withdrawal under approved personal | 15 |
pension arrangements. | |
599 Taxable pension income | |
If section 598 applies, the taxable pension income for a tax year is the total | |
amount of the income withdrawals made in that year. | |
600 Person liable for tax | 20 |
If section 598 applies, the person liable for any tax charged under this Part is | |
the person receiving or entitled to the income. | |
Unauthorised personal pension payments | |
601 Unauthorised personal pension payments | |
(1) This section applies to any unauthorised personal pension payment. | 25 |
(2) In this section “personal pension payment” means a payment which— | |
(a) is made out of funds which are or have been held for the purposes of a | |
personal pension scheme (“the paying scheme”), and | |
(b) is made to or for the benefit of an individual who has made personal | |
pension arrangements in accordance with the paying scheme (“the | 30 |
individual’s arrangements”). | |
(3) For the purposes of this section a personal pension payment is unauthorised if | |
any of conditions A, B and C are met. | |
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(4) Condition A is that— | |
(a) the paying scheme and the individual’s arrangements are both | |
approved at the time the payment is made, but | |
(b) the payment is not expressly authorised by the rules of the paying | |
scheme. | 5 |
(5) Condition B is that— | |
(a) the paying scheme is not approved at the time the payment is made, | |
and | |
(b) at the time the scheme was last approved, the payment would not have | |
been expressly authorised under the scheme’s rules. | 10 |
(6) Condition C is that— | |
(a) the individual’s arrangements are not approved at the time the | |
payment is made, and | |
(b) at the time the arrangements were last approved, the payment would | |
not have been expressly authorised under the arrangements. | 15 |
(7) In this section “payment” includes— | |
(a) a transfer of assets, and | |
(b) any other transfer of money’s worth. | |
602 Taxable pension income | |
If section 601 applies, the taxable pension income for a tax year is the total | 20 |
amount or value of the payments made in that year. | |
603 Person liable for tax | |
If section 601 applies, the person liable for any tax charged under this Part is | |
the individual who made the arrangements mentioned in section 601(2)(b) to | |
whom or for whose benefit the payment is made, whether or not the individual | 25 |
is the recipient of the payment. | |
Interpretation | |
604 Meaning of “personal pension scheme” and related expressions | |
In this Chapter the following expressions have the same meaning as in Chapter | |
4 of Part 14 of ICTA (see section 630(1) of ICTA)— | 30 |
(a) “approved”; | |
(b) “income withdrawal”; | |
(c) “personal pension arrangements”; | |
(d) “personal pension scheme”. | |
Chapter 9 | 35 |
Retirement annuity contracts | |
605 Annuities | |
This section applies to any annuity paid under a retirement annuity contract. | |
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606 Meaning of “retirement annuity contract” | |
In this Chapter “retirement annuity contract” means— | |
(a) an annuity contract or a trust scheme approved by the Board of Inland | |
Revenue under section 620 of ICTA (qualifying premiums) or under | |
section 621 of ICTA (other approved contracts), or | 5 |
(b) a substituted contract within the meaning of section 622(3) of ICTA | |
(substituted retirement annuity contracts). | |
607 Taxable pension income | |
If section 605 applies, the taxable pension income for a tax year is the full | |
amount of the annuity arising in that year. | 10 |
608 Person liable for tax | |
If section 605 applies, the person liable for any tax charged under this Part is | |
the person receiving or entitled to the annuity. | |
Chapter 10 | |
Other employment-related annuities | 15 |
609 Annuities for the benefit of dependants | |
(1) This section applies to any annuity which was granted for consideration | |
consisting in whole or in part of sums which satisfied the conditions for relief | |
under section 273 of ICTA (obligatory contributions to secure an annuity for | |
the benefit of dependants). | 20 |
(2) But this section applies to an annuity which arises from a source outside the | |
United Kingdom only if it is paid to a person resident in the United Kingdom. | |
610 Annuities under sponsored superannuation schemes | |
(1) This section applies to— | |
(a) any annuity paid under a sponsored superannuation scheme, and | 25 |
(b) any annuity acquired using funds held for the purposes of a sponsored | |
superannuation scheme. | |
(2) But this section applies to an annuity which arises from a source outside the | |
United Kingdom only if it is paid to a person resident in the United Kingdom. | |
(3) This section does not apply to an annuity to which any provision of Chapter 6, | 30 |
7, 8 or 9 of this Part applies. | |
(4) In this section “sponsored superannuation scheme” has the meaning given by | |
section 624(1) of ICTA. | |
611 Annuities in recognition of another’s services | |
(1) This section applies to any annuity purchased by any person in recognition of | 35 |
another person’s services in any office or employment. | |
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(2) But this section applies to an annuity which arises from a source outside the | |
United Kingdom only if it is paid to a person resident in the United Kingdom. | |
(3) This section does not apply to an annuity to which any provision of Chapter 6, | |
7, 8 or 9 of this Part applies. | |
(4) For the purposes of this section “office” includes in particular any position | 5 |
which has an existence independent of the person who holds it and may be | |
filled by successive holders. | |
612 Taxable pension income: UK annuities | |
(1) The taxable pension income for an annuity to which section 609, 610 or 611 | |
applies is determined in accordance with this section if the annuity arises from | 10 |
a source in the United Kingdom. | |
(2) The taxable pension income for a tax year is the full amount of the annuity | |
arising in that year. | |
613 Taxable pension income: foreign annuities | |
(1) The taxable pension income for an annuity to which section 609, 610 or 611 | 15 |
applies is determined in accordance with this section if the annuity arises from | |
a source outside the United Kingdom. | |
(2) The taxable pension income for a tax year is the amount on which tax would be | |
chargeable if the annuity were charged to tax under Case V of Schedule D for | |
that year (see in particular the provisions of ICTA listed in subsection (3)). | 20 |
(3) Those provisions of ICTA are— | |
(a) sections 65 and 68 (calculation of the amount of the income on which | |
tax is to be charged in the tax year); | |
(b) section 584 (relief for unremittable overseas income); | |
(c) section 585 (relief on delayed remittances). | 25 |
(4) In the application of sections 65(2) and 585(2) of ICTA in relation to the | |
calculation of the taxable pension income for the purposes of this section, any | |
reference to income arising from a pension is a reference to the annuity. | |
614 Person liable for tax | |
If section 609, 610 or 611 applies, the person liable for any tax charged under | 30 |
this Part is the person receiving or entitled to the annuity. | |
Chapter 11 | |
Certain overseas government pensions paid in the UK | |
615 Certain overseas government pensions paid in the United Kingdom | |
(1) This section applies to a pension if conditions A, B and C are met. | 35 |
(2) Condition A is that the pension— | |
(a) is payable— | |
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(i) to a person who has been employed in overseas government | |
service, or | |
(ii) to the widow, widower, child, relative or dependant of a person | |
who has been employed in overseas government service, and | |
(b) is payable in respect of that service. | 5 |
(3) Condition B is that the pension— | |
(a) is payable in the United Kingdom, and | |
(b) is payable to a person who is resident in the United Kingdom. | |
(4) Condition C is that the pension is payable by or on behalf of the government | |
of— | 10 |
(a) a country which forms part of Her Majesty’s dominions, | |
(b) any other country which is for the time being mentioned in Schedule 3 | |
to the British Nationality Act 1981 (c. 61), or | |
(c) any territory under Her Majesty’s protection. | |
(5) But condition C is not met if the pension is payable out of the public revenue | 15 |
of the United Kingdom or Northern Ireland. | |
(6) In condition A the references to a person being employed in overseas | |
government service are to the person being employed outside the United | |
Kingdom— | |
(a) in the service of the Crown, or | 20 |
(b) in service under the government of a country or territory which falls | |
within subsection (4). | |
(7) In this Chapter “pension” includes a pension which is paid voluntarily or is | |
capable of being discontinued. | |
616 Taxable pension income | 25 |
If section 615 applies, the taxable pension income for a tax year is the full | |
amount of the pension accruing in that year irrespective of when any amount | |
is actually paid. | |
617 Deduction allowed from taxable pension income | |
A deduction of 10% is allowed from an amount of taxable pension income | 30 |
determined under section 616 (see section 567). | |
618 Person liable for tax | |
If section 615 applies, the person liable for any tax charged under this Part is | |
the person receiving or entitled to the pension. | |
Chapter 12 | 35 |
House of Commons Members’ Fund | |
619 The House of Commons Members’ Fund | |
This section applies to any periodical payment granted out of— | |
(a) the House of Commons Members’ Fund, | |
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(b) sums appropriated from that Fund, or | |
(c) income from sums appropriated from that Fund. | |
620 Meaning of “House of Commons Members’ Fund” | |
In this Chapter “House of Commons Members’ Fund” means the fund with | |
that name established by section 1 of the House of Commons Members’ Fund | 5 |
Act 1939 (c. 49). | |
621 Taxable pension income | |
If section 619 applies, the taxable pension income for a tax year is the total | |
amount of the payments made in that year. | |
622 Person liable for tax | 10 |
If section 619 applies, the person liable for any tax charged under this Part is | |
the person receiving or entitled to the payments. | |
Chapter 13 | |
Return of surplus employee additional voluntary contributions | |
623 Return of surplus employee additional voluntary contributions | 15 |
(1) This section applies to a payment if conditions A, B and C are met. | |
(2) Condition A is that the payment is made out of funds which are or have been | |
held for the purposes of— | |
(a) a scheme which is or has been an exempt approved scheme, or | |
(b) a relevant statutory scheme established under a public general Act. | 20 |
(3) Condition B is that the payment is made under a duty to return surplus funds. | |
(4) Condition C is that the payment is made to or for the benefit of an employee. | |
(5) A payment to which this section applies is not to be charged to tax under— | |
(a) section 598 or 599 of ICTA, or | |
(b) the Regulations mentioned in paragraph 8 of Schedule 3 to FA 1971. | 25 |
(6) In this section “payment” includes— | |
(a) a transfer of assets, and | |
(b) any other transfer of money’s worth. | |
624 Taxable pension income | |
If section 623 applies, the taxable pension income for a tax year is the amount | 30 |
equal to the total amount or value of the payments made in that year, grossed | |
up by reference to the basic rate for that year. | |
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