Income Tax (Earnings and Pensions) Act 2003

Benefits from non-approved pension schemes U.K.

41 (1) Chapter 2 of Part 6 (benefits from non-approved pension schemes) applies with the following modifications in relation to a benefit provided under a non-approved retirement benefits scheme which— U.K.

(a) was entered into before 1 December 1993, and

(b) has not been varied on or after that day with a view to the provision of the benefit.

(2) Section 393(2) does not apply.

(3) Section 394(5) does not apply.

(4) For sections 395, 396 and 397 substitute—

“394A Pre-December 1993 schemes: chargeability of certain lump sums

(1) Section 394 does not apply to a lump sum to the extent that the lump sum is attributable to the payment of a sum—

(a) which is deemed to be the income of a person by virtue of section 595(1) of ICTA and in respect of which that person has been assessed to tax, or

(b) which counted as the employment income of an employee by virtue of section 386(1) of this Act.

(2) For the purposes of subsection (1) it must be assumed that, unless the contrary is shown, the provision of a lump sum is not attributable to the payment of such a sum as is mentioned in that subsection.

394B Pre-December 1993 schemes: relationship between this Chapter and Part 2

(1) This section applies if, apart from this section, the provision of a benefit to which this Chapter applies would give rise to two amounts (“A” and “B”)—

(a) A being an amount of general earnings from an employment (see section 7), and

(b) B being an amount which is to count as employment income of an individual by virtue of section 394(1).

(2) In such a case—

(a) A constitutes general earnings from the employment, and

(b) the amount, if any, by which B exceeds A is to count as employment income of the individual by virtue of section 394(1).”