Chapter 4U.K.Foreign pensions: general rules
573Foreign pensionsU.K.
(1)This section applies to any pension paid by or on behalf of a person who is outside the United Kingdom to a person who is resident in the United Kingdom.
(2)But this section does not apply to a pension if any provision of Chapters 5 to 14 of this Part applies to it.
(3)For pensions paid by or on behalf of a person who is in the United Kingdom, see Chapter 3 of this Part.
574“Pension”: interpretationU.K.
(1)For the purposes of this Chapter “pension” includes a pension which is paid voluntarily, or is capable of being discontinued, if conditions A and B are met.
(2)Condition A is that the pension is paid to—
(a)a former employee or a former office-holder,
(b)the widow or widower [F1or surviving civil partner] of a former employee or a 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 pension 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)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.
Textual Amendments
F1Words in s. 574(2)(b) inserted (5.12.2005) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 154
575Taxable pension incomeU.K.
(1)If section 573 applies, the taxable pension income for a tax year is [F2the full amount of the pension income arising in the tax year, but subject to subsections (2) and (3).]
[F3(2)The full amount of the pension income arising in the tax year is to be calculated on the basis that the pension is 90% of its actual amount, unless as a result of subsection (3) the pension income is charged in accordance with section 832 of ITTOIA 2005 (relevant foreign income charged on the remittance basis).
(3)That pension income 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).
F4(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5)See also Chapter 4 of that Part (unremittable income).]
Textual Amendments
F2Words in s. 575(1) substituted (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 606(2) (with Sch. 2)
F3S. 575(2)-(5) substituted for s. 575(2) (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 606(3) (with Sch. 2)
F4S. 575(4) omitted (with effect in accordance with Sch. 7 para. 81 of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 7 para. 45
576Person liable for taxU.K.
If section 573 applies, the person liable for any tax charged under this Part is the person receiving or entitled to the pension.