C2C1C4C5C3Part 9Pension income

Annotations:
Modifications etc. (not altering text)
C2

Pt. 9: power to amend conferred (17.12.2014) by Taxation of Pensions Act 2014 (c. 30), s. 4(3)

C1

Pt. 9 excluded by 2004 c. 12, Sch. 36 para. 45A(1) (as inserted (26.3.2015) by Finance Act 2015 (c. 11), Sch. 4 para. 19)

Chapter 15Voluntary annual payments

633Voluntary annual payments

1

This section applies to an annual payment which—

a

is paid voluntarily, or

b

is capable of being discontinued,

if conditions A and B are met.

2

Condition A is that the payment is paid to—

a

a former employee or a former office-holder,

b

the widow or widower F7or surviving civil partner of a former employee or former office-holder, or

c

any child, relative or dependant of a former employee or a former office-holder.

3

Condition B is that the payment is paid by or on behalf of—

a

the person—

i

who employed the former employee, or

ii

under whom the former office-holder held the office, or

b

the successors of that person.

4

But this section applies to a payment which is paid by or on a behalf of a person who is outside the United Kingdom only if it is paid to a person resident in the United Kingdom.

5

In 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.

634Taxable pension income: UK voluntary annual payments

1

The taxable pension income for payments to which section 633 applies is determined in accordance with this section if the payments are made by or on behalf of a person who is in the United Kingdom.

2

The taxable pension income for a tax year is the full amount of the payments accruing in that year irrespective of when any amount is actually paid.

635Taxable pension income: foreign voluntary annual payments

1

The taxable pension income for payments to which section 633 applies is determined in accordance with this section if the payments are made by or on behalf of a person who is outside the United Kingdom.

2

The taxable pension income for a tax year is F6the full amount of the pension income arising in the tax year, but subject to F5subsection (4) .

F2F83

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4

F4The full amount of the pension income arising in the tax year is treated as relevant foreign income for the purposes of Chapters 2 and 3 of Part 8 of F3ITTOIA 2005 (relevant foreign income: remittance basis and deductions and reliefs).

5

But if that pension income arises in the Republic of Ireland, section 839 of that Act (annual payments payable out of relevant foreign income) applies with the omission of F1conditions B1 and B2 (and the reference to them in subsection (1)) and subsection (5)(a).

6

See also Chapter 4 of that Part (unremittable income).

636Person liable for tax

If section 633 applies, the person liable for any tax charged under this Part is the person receiving or entitled to the payment.