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651 Overseas Pensions Act 1973 | |
(1) No liability to income tax arises on a pension which is paid under section 1 of | |
OPA 1973 if the foreign residence condition is met. | |
(2) Subsection (1) applies whether or not the pension is paid out of a fund | |
established under a scheme made under section 1 of OPA 1973. | 5 |
(3) But subsection (1) does not apply to any part of a pension paid because the | |
Pensions (Increase) Acts apply to it. | |
(4) In this section “the Pensions (Increase) Acts” means— | |
(a) the Pensions (Increase) Act 1971 (c. 56), and | |
(b) any Act passed after that Act for purposes which correspond to the | 10 |
purposes of that Act. | |
652 Overseas Service Act 1958 | |
(1) No liability to income tax arises on a pension— | |
(a) which is paid under the authority of the Overseas Service Act 1958 (c. | |
14), and | 15 |
(b) which the Secretary of State certifies to be attributable to the | |
employment of a person in the public services of an overseas territory, | |
if the foreign residence condition is met. | |
(2) If the Secretary of State certifies that only part of a pension paid under the | |
authority of the 1958 Act is attributable to the employment of a person in the | 20 |
public services of an overseas territory, subsection (1) applies only to that part | |
of the pension. | |
(3) For the purposes of subsections (1) and (2), a pension is paid under the | |
authority of the 1958 Act if condition A or B is met. | |
(4) Condition A is that the pension is paid under either of the following— | 25 |
(a) an order made under section 2 of the 1958 Act, or | |
(b) section 4(2) of the 1958 Act, | |
as it has effect (by reason of section 2(3) of OPA 1973) as a scheme under section | |
2 of OPA 1973. | |
(5) Condition B is that the pension is paid under a scheme which the Secretary of | 30 |
State— | |
(a) has made under section 2(1) of OPA 1973, and | |
(b) has certified to correspond to— | |
(i) an order made under section 2 of the 1958 Act, or | |
(ii) section 4(2) of the 1958 Act. | 35 |
(6) For the purposes of this section, a person is taken to be employed in the public | |
service of an overseas territory at any time when— | |
(a) the person is employed in any capacity under the government of that | |
territory, or under any municipal or other local authority in it, | |
(b) the person is employed in circumstances not falling within paragraph | 40 |
(a), by a body corporate established for any public purpose in that | |
territory by an enactment of a legislature empowered to make laws for | |
that territory, or | |
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(c) the person is the holder of a public office in that territory in | |
circumstances not falling within paragraph (a) or (b). | |
(7) In subsection (6) references to the government of an overseas territory include | |
references to— | |
(a) a government constituted for two or more overseas territories, and | 5 |
(b) 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 such territories. | |
(8) In this section— | |
“the 1958 Act” means the Overseas Service Act 1958 (c. 14); | 10 |
“certified” means certified for the purposes of ICTA 1970, ICTA or this | |
Act. | |
653 Overseas Service Pensions Fund | |
(1) No liability to income tax arises on a pension which is paid out of the Overseas | |
Service Pensions Fund if the foreign residence condition is met. | 15 |
(2) In this section “the Overseas Service Pensions Fund” means the fund with that | |
name established under section 7(1) of the Overseas Aid Act 1966 (c. 21). | |
(3) In this section “pension” includes not only the things mentioned in section | |
647(4) but also any sum payable in respect of ill-health. | |
654 The Pensions (India, Pakistan and Burma) Act 1955 | 20 |
(1) No liability to income tax arises on a pension paid under the authority of the | |
Pensions (India, Pakistan and Burma) Act 1955 (c. 22) if the foreign residence | |
condition is met. | |
(2) A pension is paid under the authority of the 1955 Act if— | |
(a) the pension is paid under the 1955 Act as it has effect (by reason of | 25 |
section 2(3) of OPA 1973) as a scheme under section 2 of OPA 1973, or | |
(b) the pension is paid under a scheme which the Secretary of State— | |
(i) has made under section 2(1) of OPA 1973, and | |
(ii) has certified to correspond to the provision made under the | |
1955 Act. | 30 |
(3) This section does not apply to any part of a pension paid because the Pensions | |
(Increase) Acts apply to it. | |
(4) In this section— | |
“the 1955 Act” means the Pensions (India, Pakistan and Burma) Act 1955 | |
(c. 22); | 35 |
“certified” means certified for the purposes of ICTA 1970, ICTA or this | |
Act; | |
“the Pensions (Increase) Acts” means— | |
(a) the Pensions (Increase) Act 1971 (c. 56), and | |
(b) any Act passed after that Act for purposes which correspond to | 40 |
the purposes of that Act. | |
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Part 10 | |
Social security income | |
Chapter 1 | |
Introduction | |
655 Structure of this Part | 5 |
(1) The structure of Part 10 is as follows— | |
Chapter 2— | |
(a) imposes the charge to tax on social security income, and | |
(b) provides for deductions to be made from the amount of income | |
chargeable; | 10 |
Chapter 3 sets out the UK social security benefits which are charged to tax | |
under this Part and identifies— | |
(a) the amount of income chargeable to tax for a tax year, and | |
(b) the person liable to pay any tax charged; | |
Chapters 4 and 5 deal with exemptions from the charge to tax on UK social | 15 |
security benefits (whether under this Part or any other provision); | |
Chapters 6 and 7 make provision about foreign benefits. | |
(2) For other provisions about the taxation of social security benefits see— | |
section 151 of FA 1996 (power for the Treasury to make orders about the | |
taxation of benefits payable under Government pilot schemes); | 20 |
section 84 of FA 2000 (exemption of payments under New Deal 50plus); | |
section 85 of FA 2000 (exemption of payments under Employment Zones | |
programme). | |
(3) For the charge to tax on social security pensions, see Part 9 (pension income). | |
Chapter 2 | 25 |
Tax on social security income | |
656 Nature of charge to tax on social security income | |
(1) The charge to tax on social security income is a charge to tax on that income | |
excluding any exempt income. | |
(2) “Exempt income” is social security income on which no liability to income tax | 30 |
arises as a result of any provision of Chapter 4, 5 or 7 of this Part. | |
This definition applies for the purposes of this Part. | |
657 Meaning of “social security income”, “taxable benefits” etc. | |
(1) This section defines— | |
“social security income” for the purposes of the Tax Acts, and | 35 |
“taxable benefits”, “Table A” and “Table B” for the purposes of this Part. | |
(2) “Social security income” means— | |
(a) the United Kingdom social security benefits listed in Table A, | |
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(b) the United Kingdom social security benefits listed in Table B, | |
(c) the foreign benefits to which section 678 applies, and | |
(d) the foreign benefits to which section 681(2) applies. | |
(3) “Taxable benefits” means— | |
(a) the United Kingdom social security benefits listed in Table A, and | 5 |
(b) the foreign benefits to which section 678 applies. | |
(4) Subsections (2) and (3) are subject to section 660(2). | |
(5) “Table A” means Table A in section 660. | |
(6) “Table B” means Table B in section 677. | |
658 Amount charged to tax | 10 |
(1) The amount of social security income which is charged to tax under this Part | |
for a particular tax year is as follows. | |
(2) In relation to a taxable benefit, the amount charged to tax is the net taxable | |
social security income for the tax year. | |
(3) The net taxable social security income for a taxable benefit for a tax year is | 15 |
given by the formula—![equation: plus[times[char[T],char[S],char[S],char[I]],minus[times[char[P],char[G],char[D]]]]](missing.gif) | |
where— | |
TSSI means the amount of taxable social security income for that benefit | |
for that year (see subsections (4) to (7)), and | |
PGD means the amount of the deduction (if any) allowed from the benefit | 20 |
under Part 12 (payroll giving). | |
(4) In relation to bereavement allowance, carer’s allowance, incapacity benefit and | |
income support (which are listed in Table A), the amount of taxable social | |
security income is determined in accordance with section 661. | |
(5) In relation to any other benefit listed in Table A, the amount of taxable social | 25 |
security income is the amount of the benefit that falls to be charged to tax. | |
(6) In relation to foreign benefits to which section 678 applies, the amount of | |
taxable social security income is determined in accordance with section 679. | |
(7) In determining for the purposes of this Act the amount of taxable social | |
security income, any exempt income is to be excluded. | 30 |
659 Person liable for tax | |
The person liable for any tax charged under this Part is identified in— | |
(a) section 662 (UK benefits), or | |
(b) section 680 (foreign benefits). | |
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