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642 Compensation for National-Socialist persecution | |
No liability to income tax arises on a pension or annuity which is payable | |
under any special provision for victims of National-Socialist persecution which | |
is made by the law of— | |
(a) the Federal Republic of Germany or any part of it, or | 5 |
(b) Austria. | |
643 Malawi, Trinidad and Tobago and Zambia government pensions | |
(1) No liability to income tax arises on— | |
(a) a Malawi government pension, | |
(b) a Trinidad and Tobago government pension, or | 10 |
(c) a Zambia government pension, | |
if conditions A, B and C are met. | |
(2) Condition A is that the pension is paid to— | |
(a) the original pensioner, or | |
(b) the widow or widower of the original pensioner. | 15 |
(3) Condition B is that the pension is now paid under section 1 of OPA 1973 | |
(whether or not it is paid out of a fund established under a scheme made under | |
that section). | |
(4) Condition C is that, at the time the pension is paid, provision is made by double | |
taxation relief arrangements which would exempt the pension from income tax | 20 |
in the United Kingdom if the pension were still paid by the relevant | |
government (rather than under section 1 of OPA 1973). | |
(5) Subsection (1) does not apply to any part of a pension which is paid because | |
the Pensions (Increase) Act 1971 (c. 56) applies to it. | |
(6) In this section— | 25 |
“double taxation relief arrangements” means arrangements specified in | |
an Order in Council making any such provisions as are referred to in | |
section 788 of ICTA; | |
“Malawi government pension” means a pension payable by the | |
government of Malawi for services rendered— | 30 |
(a) to the government of Malawi, or | |
(b) to the government of the Federation of Rhodesia and | |
Nyasaland, | |
in the discharge of government functions; | |
“Trinidad and Tobago government pension” means a pension payable by | 35 |
the government of Trinidad and Tobago for services rendered to the | |
government of Trinidad and Tobago in the discharge of governmental | |
functions; | |
“Zambia government pension” means a pension payable by the | |
government of Zambia for services rendered— | 40 |
(a) to the government of Zambia, | |
(b) to the government of Northern Rhodesia, or | |
(c) to the government of the Federation of Rhodesia and | |
Nyasaland, | |
in the discharge of governmental functions. | 45 |
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(7) For the purposes of this section a person is the “original pensioner” in relation | |
to a pension if— | |
(a) the pension is payable by virtue of the person’s service, and | |
(b) the person retired from that service before 6th April 1973. | |
644 Pensions payable where employment ceased due to disablement | 5 |
(1) No liability to income tax arises on the exempt amount of a disablement | |
pension. | |
(2) For the purposes of this section a pension is a “disablement pension” if— | |
(a) the pension is payable because a person has ceased to hold an | |
employment or office because of disablement, and | 10 |
(b) that disablement is attributable to— | |
(i) performance of the duties of the employment or office, or | |
(ii) war injuries. | |
But “disablement pension” does not include any pension to which section 580 | |
or 590 applies. | 15 |
(3) The exempt amount of a disablement pension is determined in accordance | |
with the following steps. | |
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Step 1 | |
Determine what pension would have been payable if— | 20 |
(a) the person had ceased to hold the employment or office because of the | |
disablement mentioned in subsection (2)(a), but | |
(b) the disablement had not been attributable to— | |
(i) performance of the duties of the employment or office, or | |
(ii) war injuries. | 25 |
Step 2 | |
If no pension would have been payable, the exempt amount is the amount of | |
the disablement pension. | |
If a pension of a smaller amount than the disablement pension would have | |
been payable, the exempt amount is the amount by which the disablement | 30 |
pension exceeds the smaller amount. | |
In any other case, the exempt amount is nil. | |
(4) For the purposes of this section “office” includes in particular any position | |
which has an existence independent of the person who holds it and may be | |
filled by successive holders. | 35 |
645 Social security pensions: increases in respect of children | |
(1) No liability to income tax arises on a part of a social security pension which is | |
attributable to an increase in respect of a child. | |
(2) In this section “social security pension” means— | |
(a) any pension, benefit or allowance to which section 577 applies, and | 40 |
(b) any pension, benefit or allowance which— | |
(i) is payable under the law of a country or territory outside the | |
United Kingdom, and | |
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(ii) is substantially similar in character to a pension, benefit or | |
allowance to which section 577 applies. | |
646 Former miners etc: coal and allowances in lieu of coal | |
(1) No liability to income tax arises on— | |
(a) the provision of coal or smokeless fuel— | 5 |
(i) to a former colliery worker, or | |
(ii) to the widow or widower of a former colliery worker, or | |
(b) any allowance paid to such a person in lieu of such provision, | |
if the condition in subsection (2) is met. | |
(2) That condition is that the amount of coal or fuel provided or in respect of which | 10 |
the allowance is paid does not substantially exceed the amount reasonably | |
required for personal use. | |
(3) That condition is assumed to be met unless the contrary is shown. | |
(4) In this section “former colliery worker” means— | |
(a) any person who has ceased to be employed as a coal miner, or | 15 |
(b) any other person who has ceased to be employed at or about a colliery | |
otherwise than in clerical, administrative or technical work. | |
Chapter 18 | |
Exemptions: Non-UK resident taxpayers | |
647 Introduction and meaning of “foreign residence condition” etc. | 20 |
(1) The provisions of this Part provide that no liability to income tax arises on | |
certain kinds of pensions if the foreign residence condition is met. | |
(2) The foreign residence condition is met in relation to a pension if the pension is | |
payable to a person who is not resident in the United Kingdom. | |
(3) For the purposes of the foreign residence condition, a person is taken to be not | 25 |
resident in the United Kingdom only if— | |
(a) a person makes a claim to the Board of Inland Revenue that the person | |
is not resident, and | |
(b) the Board is satisfied that the person is not resident. | |
(4) In this Chapter “pension” includes— | 30 |
(a) a gratuity or any sum payable on or in respect of death, | |
(b) a return of contributions, and | |
(c) any interest or other addition included in a return of contributions. | |
648 The Central African Pension Fund | |
(1) No liability to income tax arises on a pension which is paid from the Central | 35 |
African Pension Fund if the foreign residence condition is met. | |
(2) In this section “the Central African Pension Fund” means the fund established | |
under that name by section 24 of the Federation of Rhodesia and Nyasaland | |
(Dissolution) Order in Council 1963 (S.I. 1963/2085). | |
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649 Commonwealth government pensions | |
(1) No liability to income tax arises on a pension paid out of a fund which is | |
established— | |
(a) in the United Kingdom, | |
(b) by a Commonwealth government, | 5 |
(c) for the sole purpose of providing pensions payable in respect of service | |
under that government, | |
if the foreign residence condition is met. | |
(2) In this section “Commonwealth government” means— | |
(a) the government of a territory or country mentioned in subsection (3), | 10 |
(b) the government of any part of a territory or country mentioned in | |
subsection (3), or | |
(c) a government constituted for two or more of the territories or countries | |
mentioned in subsection (3). | |
(3) The territories and countries referred to in subsection (2) are— | 15 |
(a) a country mentioned in Schedule 3 to the British Nationality Act 1981 | |
(c. 61) apart from Australia, Canada, New Zealand, India, Sri Lanka | |
and Cyprus, | |
(b) an associated state, | |
(c) a British overseas territory, | 20 |
(d) a protectorate, | |
(e) a protected state, and | |
(f) a United Kingdom trust territory. | |
(4) In subsection (2)(c) the reference to a government constituted for two or more | |
of the territories or countries mentioned in subsection (3) includes a reference | 25 |
to any authority established for the purpose of providing or administering | |
services which are common to, or relate to matters of common interest to, two | |
or more of those territories or countries. | |
(5) In subsection (3)(f) “United Kingdom trust territory” means a territory | |
administered by the government of the United Kingdom under the trusteeship | 30 |
system of the United Nations. | |
650 Oversea Superannuation Scheme | |
(1) No liability to income tax arises on a pension which is paid under the Oversea | |
Superannuation Scheme (formerly known as the Colonial Superannuation | |
Scheme) if the foreign residence condition is met. | 35 |
(2) For the purposes of subsection (1) a pension is paid under the Oversea | |
Superannuation Scheme if— | |
(a) the pension is paid under the Scheme as it has effect (by reason of | |
section 2(4A) of OPA 1973) as a scheme under section 2 of OPA 1973, or | |
(b) the pension is paid under a scheme which— | 40 |
(i) the Secretary of State has made under section 2(1) of OPA 1973, | |
and | |
(ii) corresponds to the Oversea Superannuation Scheme. | |
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