Chapter 10U.K.Other employment-related annuities
609Annuities for the benefit of dependantsU.K.
(1)This section applies to any annuity which was granted for consideration consisting in whole or in part of sums which satisfied the conditions for relief under section 273 of ICTA [F1or section 459 of ITA 2007] (obligatory contributions to secure an annuity for the benefit of dependants).
(2)But this section applies to an annuity which arises from a source outside the United Kingdom only if it is paid to a person resident in the United Kingdom.
Textual Amendments
F1Words in s. 609(1) inserted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 441 (with Sch. 2)
610Annuities under [F2non-registered occupational pension] schemesU.K.
(1)This section applies to—
(a)any annuity paid under [F3an occupational pension scheme that is not a registered pension scheme], and
(b)any annuity acquired using funds held for the purposes of [F4such an occupational pension scheme].
(2)But this section applies to an annuity which arises from a source outside the United Kingdom only if it is paid to a person resident in the United Kingdom.
(3)This section does not apply to an annuity to which [F5Chapter 5A] of this Part applies.
[F6(4)In this section “occupational pension scheme” has the same meaning as in Part 4 of FA 2004 (see section 150(5) of that Act).]
Textual Amendments
F2Words in s. 610 heading substituted (6.4.2006) by Finance Act 2004 (c. 12), s. 284(1), Sch. 31 para. 8(5) (with Sch. 36)
F3Words in s. 610(1)(a) substituted (6.4.2006) by Finance Act 2004 (c. 12), s. 284(1), Sch. 31 para. 8(2)(a) (with Sch. 36)
F4Words in s. 610(1)(b) substituted (6.4.2006) by Finance Act 2004 (c. 12), s. 284(1), Sch. 31 para. 8(2)(b) (with Sch. 36)
F5Words in s. 610(3) substituted (6.4.2006) by Finance Act 2004 (c. 12), s. 284(1), Sch. 31 para. 8(3) (with Sch. 36)
F6S. 610(4) substituted (6.4.2006) by Finance Act 2004 (c. 12), s. 284(1), Sch. 31 para. 8(4) (with Sch. 36)
611Annuities in recognition of another’s servicesU.K.
(1)This section applies to any annuity purchased by any person in recognition of another person’s services in any office or employment.
(2)But this section applies to an annuity which arises from a source outside the United Kingdom only if it is paid to a person resident in the United Kingdom.
(3)This section does not apply to an annuity to which [F7Chapter 5A] of this Part applies.
(4)For the purposes of 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.
Textual Amendments
F7Words in s. 611(3) substituted (6.4.2006) by Finance Act 2004 (c. 12), s. 284(1), Sch. 31 para. 9 (with Sch. 36)
612Taxable pension income: UK annuitiesU.K.
(1)The taxable pension income for an annuity to which section 609, 610 or 611 applies is determined in accordance with this section if the annuity arises from a source in the United Kingdom.
(2)The taxable pension income for a tax year is the full amount of the annuity arising in that year.
613Taxable pension income: foreign annuitiesU.K.
(1)The taxable pension income for an annuity to which section 609, 610 or 611 applies is determined in accordance with this section if the annuity arises from a source outside the United Kingdom.
(2)The taxable pension income for a tax year is [F8the full amount of the annuity arising in the tax year, but subject to subsections (3) and (4).]
[F9(3)The full amount of the annuity arising in the tax year is to be calculated on the basis that the annuity is 90% of its actual amount, unless as a result of subsection (4) the annuity is charged in accordance with section 832 of ITTOIA 2005 (relevant foreign income charged on the remittance basis).
(4)The annuity is treated as relevant foreign income for the purposes of Chapters 2 and 3 of Part 8 of that Act (relevant foreign income: remittance basis and deductions and reliefs).
(5)But if the annuity arises in the Republic of Ireland, section 839 of that Act (annual payments payable out of relevant foreign income) applies with the omission of condition B and subsection (5)(a).
(6)See also Chapter 4 of that Part (unremittable income).]
Textual Amendments
F8Words in s. 613(2) substituted (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 607(2) (with Sch. 2)
F9S. 613(3)-(6) substituted for s. 613(3)(4) (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 607(3) (with Sch. 2)
614Person liable for taxU.K.
If section 609, 610 or 611 applies, the person liable for any tax charged under this Part is the person receiving or entitled to the annuity.