Income and Corporation Taxes Act 1988

597 Charge to tax: pensions. U.K.

M1(1)Subject to subsection (2) below, all pensions paid under any scheme which is approved or is being considered for approval under this Chapter shall be charged to tax under Schedule E, and section 203 shall apply accordingly.

(2)As respects any scheme which is approved or is being considered for approval under this Chapter, the Board may direct that, until such date as the Board may specify, pensions under the scheme shall be charged to tax as annual payments under Case III of Schedule D, and tax shall be deductible under sections 348 and 349 accordingly.

[F1(3)Without prejudice to subsection (1) above, where funds held for the purposes of any scheme which is approved or is being considered for approval under this Chapter are used to acquire an annuity—

(a)the annuity shall be charged to tax under Schedule E and section 203 shall apply accordingly;

(b)the annuity shall not be charged to tax under Case III of Schedule D.]

Textual Amendments

F1S. 597(3) inserted (with application in accordance with s. 110(2) of the amending Act) by Finance Act 1994 (c. 9), s. 110(1)

Modifications etc. (not altering text)

C1 See 1989 s.41—tax charged on amount accruing (1989-90and subsequent years of assessment).

Marginal Citations

M1Source-1970(F) Sch.5 Part II 1