Income and Corporation Taxes Act 1988

607 Pilots’ benefit fund.U.K.

M1(1)The Board may, if they think fit, and subject to such conditions as they think proper to attach to the approval, approve a pilots’ benefit fund for the purposes of this Chapter as if it were a retirement benefits scheme and notwithstanding that it does not satisfy one or more of the conditions set out in section 590(2) and (3).

(2)If a fund is approved by virtue of this section—

(a)sections 592, 597 to 600 and 604 to 606 shall have effect in relation to the fund with the modifications specified in subsection (3) below;

(b)pensions paid out of the fund and any sums chargeable to tax in connection with the fund under section 600 shall be treated for the purposes of the Income Tax Acts as earned income; and

(c)Chapter III of this Part shall have effect as if a member of the fund were the holder of a pensionable office or employment and his earnings as a pilot (estimated in accordance with the provisions of Case II of Schedule D) were remuneration from such an office or employment.

(3)The modifications referred to in subsection (2)(a) above are as follows—

(a)in section 592, for the references in subsection (7) to an employee and Schedule E there shall be substituted respectively references to a member of the fund and Schedule D, and subsections (4) to (6), and in subsection (7) the words from “incurred” onwards, shall be omitted;

(b)in sections 597 to 606 (except sections 601 to 603)—

(i)for references to an employee there shall be substituted references to a member or former member of the fund;

(ii)in section 599(1)(a) for the reference to a year of service there shall be substituted a reference to a year as a pilot licensed by a pilotage authority or authorised by a competent harbour authority;

(iii)section 606(1) and (3) and so much of any other provision as applies to an employer shall be omitted; and

(iv)in section 600, for references to Schedule E there shall be substituted references to Case VI of Schedule D.

(4)In this section “pilots’ benefit fund” means a fund established under section 15(1)(i) of the M2Pilotage Act 1983 or any scheme supplementing or replacing any such fund.

Modifications etc. (not altering text)

C1 See Sch.1 para.4 Pilotage Act 1987—continuation of fund following repeal of s.15(1)(i) Pilotage Act 1983 by Pilotage Act 1987 (on and after 1February 1988by virtue of S.I. 1987 No. 2138).

Marginal Citations

M1Source-1980 s.35