12 Dispositions allowable for income tax or conferring [F1benefits under pension scheme].U.K.
(1)A disposition made by any person is not a transfer of value if it is allowable in computing that person’s profits or gains for the purposes of income tax or corporation tax or would be so allowable if those profits or gains were sufficient and fell to be so computed.
(2)Without prejudice to subsection (1) above, a disposition made by any person is not a transfer of value if [F2it is a contribution under a registered pension scheme [F3, a qualifying non-UK pension scheme or a] section 615(3) scheme in respect of an employee of the person making the disposition.]
[F4(2ZA)Where a person who is a member of a registered pension scheme, a qualifying non-UK pension scheme or a section 615(3) scheme omits to exercise pension rights under the pension scheme, section 3(3) above does not apply in relation to the omission.]
F5[F6(2A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F5(2B). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F5(2C). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F5(2D). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F5(2E). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2F)For the purposes of this section—
(a)a person omits to exercise pension rights under a pension scheme if he does not become entitled to the whole or any part of a pension or lump sum (or both) under the pension scheme at a time when he was eligible to become so entitled (whether or not he does become entitled to any other benefits under the pension scheme); F7. . .
F7(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2G)In this section—
“entitled”, in relation to a pension or lump sum, shall be construed in accordance with section 165(3) or [F8167(1A), or section 166(2),] of the Finance Act 2004;
F9. . .
“pension” has the same meaning as in [F10Part 4] of that Act (see section 165(2) of that Act);
F9. . .
F9. . .]
F11(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F11(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5)Where a disposition satisfies the conditions of the preceding provisions of this section to a limited extent only, so much of it as satisfies them and so much of it as does not satisfy them shall be treated as separate dispositions.
Textual Amendments
F1Words in s. 12 sidenote substituted (6.4.2006) by Finance Act 2006 (c. 25), s. 160, Sch. 22 para. 2
F2Words in s. 12(2) substituted (6.4.2006) by Finance Act 2004 (c. 12), ss. 203(2)(a), 284 (with Sch. 36)
F3Words in s. 12(2) substituted (retrospective to 6.4.2006) by Finance Act 2008 (c. 9), s. 92, Sch. 29 para. 18(2)(8)
F4S. 12(2ZA) inserted (with effect as mentioned in Sch. 16 paras. 85, 105 of the amending Act) by Finance Act 2011 (c. 11), s. 65, Sch. 16 para. 47(2)
F5S. 12(2A)-(2E) omitted (with effect as mentioned in Sch. 16 paras. 85, 105 of the amending Act) by virtue of Finance Act 2011 (c. 11), s. 65, Sch. 16 para. 47(3)
F6S. 12(2A)-(2G) inserted (6.4.2006) by Finance Act 2006 (c. 25), s. 160, Sch. 22 paras. 2, 12
F7S. 12(2F)(b) and preceding word omitted (with effect as mentioned in Sch. 16 paras. 85, 105 of the amending Act) by virtue of Finance Act 2011 (c. 11), s. 65, Sch. 16 para. 50(2)
F8Words in s. 12(2G) substituted (15.9.2016) by Finance Act 2016 (c. 24), s. 94(3)
F9Words in s. 12(2G) omitted (with effect as mentioned in Sch. 16 paras. 85, 105 of the amending Act) by virtue of Finance Act 2011 (c. 11), s. 65, Sch. 16 para. 50(3)(a)
F10Words in s. 12(2G) substituted (with effect as mentioned in Sch. 16 paras. 85, 105 of the amending Act) by Finance Act 2011 (c. 11), s. 65, Sch. 16 para. 50(3)(b)
F11S. 12(3)(4) repealed (6.4.2006) by Finance Act 2004 (c. 12), ss. 203(2)(b), 284, 326, Sch. 42 Pt. 3 (with Sch. 36)