- Latest available (Revised)
- Point in Time (19/07/2007)
- Original (As enacted)
Point in time view as at 19/07/2007.
Income and Corporation Taxes Act 1988, PART XIV is up to date with all changes known to be in force on or before 10 September 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
Changes and effects yet to be applied by the editorial team are only applicable when viewing the latest version or prospective version of legislation. They are therefore not accessible when viewing legislation as at a specific point in time. To view the ‘Changes to Legislation’ information for this provision return to the latest version view using the options provided in the ‘What Version’ box above.
Modifications etc. (not altering text)
C1Pt. 14 Ch. 1 (ss. 590-612) modified (31.3.1995) by Judicial Pensions and Retirement Act 1993 (c. 8), ss. 18, 19(4), 31(2); S.I. 1995/631, art. 2
F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F1Ss. 590-594 repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F2Ss. 590A-590C inserted by Finance Act 1989 (c. 26), s. 75, Sch. 6 paras. 4, 18(4)
F3Ss. 590-594 repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F4Ss. 590A-590C inserted by Finance Act 1989 (c. 26), s. 75, Sch. 6 paras. 4, 18(4)
F5Ss. 590-594 repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F6Ss. 590A-590C inserted by Finance Act 1989 (c. 26), s. 75, Sch. 6 paras. 4, 18(4)
F7Ss. 590-594 repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F8Ss. 590-594 repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F9S. 591A inserted by Finance Act 1991 (c. 31), s.35
F10Ss. 590-594 repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F11S. 591B inserted (retrospectively) by Finance Act 1991 (c. 31), s. 36(1)(3)
F12Ss. 590-594 repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F13Ss. 591C, 591D inserted (with effect in accordance with s. 61(3) of the amending Act) by Finance Act 1995 (c. 4), s. 61(1)
F14Ss. 590-594 repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F13Ss. 591C, 591D inserted (with effect in accordance with s. 61(3) of the amending Act) by Finance Act 1995 (c. 4), s. 61(1)
F15Ss. 590-594 repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F16Ss. 590-594 repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F17Ss. 590-594 repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F18. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F18Ss. 590-594 repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F19Ss. 595, 596 repealed (6.4.2003 with effect in accordance with s. 723(1) of the repealing Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 6 para. 74, Sch. 8 Pt. 1 (with Sch. 7)
F20. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F20Ss. 595, 596 repealed (6.4.2003 with effect in accordance with s. 723(1) of the repealing Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 6 para. 74, Sch. 8 Pt. 1 (with Sch. 7)
F22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F21Ss. 596A, 596B inserted (with effect in accordance with Sch. 6 para. 18(7) of the amending Act) by Finance Act 1989 (c. 26), Sch. 6 para. 9
F22Ss. 596A-596C repealed (6.4.2003 with effect in accordance with s. 723(1) of the repealing Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 6 para. 75, Sch. 8 Pt. 1 (with Sch. 7)
F24. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F23Ss. 596A, 596B inserted (with effect in accordance with Sch. 6 para. 18(7) of the amending Act) by Finance Act 1989 (c. 26), Sch. 6 para. 9
F24Ss. 596A-596C repealed (6.4.2003 with effect in accordance with s. 723(1) of the repealing Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 6 para. 75, Sch. 8 Pt. 1 (with Sch. 7)
F26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F25S. 596C inserted (with effect in accordance with s. 93(4) of the amending Act) by Finance Act 1998 (c. 36), s. 93(3)
F26Ss. 596A-596C repealed (6.4.2003 with effect in accordance with s. 723(1) of the repealing Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 6 para. 75, Sch. 8 Pt. 1 (with Sch. 7)
F27. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F27S. 597 repealed (6.4.2003 with effect in accordance with s. 723(1) of the repealing Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 6 para. 76, Sch. 8 Pt. 1 (with Sch. 7)
F28. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F28Ss. 598-599A repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36) (with savings in S.I. 2006/5072, arts. 1(1), 38)
F29. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F29Ss. 598-599A repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36) (with savings in S.I. 2006/5072, arts. 1(1), 38)
F31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F30S. 599A inserted (with effect in accordance with Sch. 6 para. 18(9) of the amending Act) by Finance Act 1989 (c. 26), Sch. 6 para. 12
F31Ss. 598-599A repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36) (with savings in S.I. 2006/5072, arts. 1(1), 38)
F32. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F32S. 600 repealed (6.4.2003 with effect in accordance with s. 723(1) of the repealing Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 6 para. 78, Sch. 8 Pt. 1 (with Sch. 7)
F33. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F33Ss. 601-612 repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F34. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F34Ss. 601-612 repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F35Ss. 601-612 repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F36. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F36Ss. 601-612 repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F37. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F37Ss. 601-612 repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F39. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F38S. 605A inserted (with application in accordance with s. 106(2) of the amending Act) by Finance Act 1994 (c. 9), s. 106(1)
F39Ss. 601-612 repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F40. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F40Ss. 601-612 repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F42. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F41S. 606A inserted (with effect in accordance with Sch. 15 para. 6(2) of the amending Act) by Finance Act 1998 (c. 36), Sch. 15 para. 6(1)
F42Ss. 601-612 repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F43. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F43Ss. 601-612 repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F44. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F44Ss. 601-612 repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F45. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F45Ss. 601-612 repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F46. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F46Ss. 601-612 repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F47. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F47Ss. 601-612 repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F49. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F48S. 611A inserted (14.3.1989) by Finance Act 1989 (c. 26), Sch. 6 paras. 15, 18(1)
F49Ss. 601-612 repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F51. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F50S. 611AA inserted (with application in accordance with s. 103(3) of the amending Act) by Finance Act 1994 (c. 4), s. 103(1)
F51Ss. 601-612 repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F49. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F48S. 611A inserted (14.3.1989) by Finance Act 1989 (c. 26), Sch. 6 paras. 15, 18(1)
F49Ss. 601-612 repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F52. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F52Ss. 601-612 repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
[F53(1)M1The salary of a Member of the House of Commons shall, for all the purposes of the Income Tax Acts, be treated as reduced by the amounts deducted in pursuance of section 1 of the M2House of Commons Members’ Fund Act 1939; but a Member shall not by reason of any such deduction be entitled to relief under any other provision of the Income Tax Acts.
(2)In subsection (1) above the reference to salary shall be construed as mentioned in subsection (3) of section 1 of the House of Commons Members’ Fund Act 1939, the reference to amounts deducted includes a reference to amounts required to be set aside under that subsection, and “deduction” shall be construed accordingly.]
(3)F54. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4)M3The F55. . . trustees of—
(a)the House of Commons Members’ Fund established under section 1 of that Act of 1939;
(b)F56. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[F57(bb)F56. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
(c)F56. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(d)F56. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
shall be entitled to exemption from income tax in respect of all income derived from [F58that Fund] or any investment of [F58that Fund].
A claim under this subsection shall be made to the Board.
Textual Amendments
F53S. 613(1)(2) (which were repealed by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 6 para. 83, Sch. 8 Pt. 1) restored (retrospectively) by Finance Act 2005 (c. 7), Sch. 10 para. 63
F54S. 613(3) repealed (6.4.2003 with effect in accordance with s. 723(1) of the repealing Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 6 para. 83, Sch. 8 Pt. 1 (with Sch. 7)
F55Word in s. 613(4) repealed (6.4.2006) by Finance Act 2004 (c. 12), s. 284(1), Sch. 35 para. 26(a), Sch. 42 Pt. 3, Note (with Sch. 36)
F56S. 613(4)(b)-(d) repealed (6.4.2006) by Finance Act 2004 (c. 12), s. 284(1), Sch. 35 para. 26(a), Sch. 42 Pt. 3, Note (with Sch. 36)
F57S. 613(4)(bb) inserted (with effect in accordance with s. 52(2) of the amending Act) by Finance Act 1999 (c. 16), Sch. 5 para. 4
F58Words in s. 613(4) substituted (6.4.2006) by Finance Act 2004 (c. 12), s. 284(1), Sch. 35 para. 26(b) (with Sch. 36)
Marginal Citations
M1Source-1970 s.211(1), (4)
M3Source-1970 s.211(2) 1981 s.50(1); PPA 1987 Sch.3 2(1)
(1)F59. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2)M4Any interest or dividends received by the person in whom is vested any of the Family Pension Funds mentioned in section 273 of the M5Government of India Act 1935, and having effect as a scheme made under section 2 of the M6Overseas Pensions Act 1973, on sums forming part of that fund shall be exempt from income tax.
[F60(2A)The reference in subsection (2) above to interest on sums forming part of a fund include references to any amount which is treated as income by virtue of [F61Chapter 8 of Part 4 of ITTOIA 2005 (profits from deeply] discounted securities) and derives from any investment forming part of that fund.]
(3)M7Income derived from investments or deposits of any fund referred to in [F62section 648, 649, 650 or 651 of ITEPA 2003] shall not be charged to income tax, and any income tax deducted from any such income shall be repaid by the Board to the persons entitled to receive the income.
(4)M8In respect of income derived from investments or deposits of the Overseas Service Pensions Fund established pursuant to section 7(1) of the M9Overseas Aid Act 1966, the Board shall give by way of repayment such relief from income tax as is necessary to secure that the income is exempt to the like extent (if any) as if it were income of a person not domiciled, ordinarily resident or resident in the United Kingdom.
(5)M10In respect of dividends and other income derived from investments, deposits or other property of a superannuation fund to which section 615(3) applies the Board shall give by way of repayment such relief from income tax as is necessary to secure that the income is exempt to the like extent (if any) as if it were income of a person not domiciled, ordinarily resident or resident in the United Kingdom.
(6)M11A claim under this section shall be made to the Board.
Textual Amendments
F59S. 614(1) repealed (3.5.1994) by Finance Act 1994 (c. 9), Sch. 26 Pt. 5(22)
F60S. 614(2A) inserted (with effect in accordance with s. 105(1) of the amending Act) by Finance Act 1996 (c. 8), Sch. 14 para. 34 (with Sch. 15)
F61Words in s. 614(2A) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 261 (with Sch. 2)
F62Words in s. 614(3) substituted (6.4.2003 with effect in accordance with s. 723(1) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 6 para. 84 (with Sch. 7)
Marginal Citations
M4Source-1970 s.213(1)
M7Source-1970 s.214(2), 216(2); 1973 s.53(1)
M8Source-1970 s.217(2), (4)
M10Source-1970 s.218(1)
M11Source-1970 s.212(3), 213(1), 214(3), 216(2), 217(2), 218(1); 1987 Sch.15 2(13)
(1)F63. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2)F63. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3)M12Where an annuity is paid from a superannuation fund to which this subsection applies to a person who is not resident in the United Kingdom, income tax shall not be deducted from any payment of the annuity or accounted for under [F64Chapter 6 of Part 15 of ITA 2007 (deduction from annual payments and patent royalties)] by the trustees or other persons having the control of the fund.
(4)F63. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5)F63. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6)M13Subsection (3) above applies to any superannuation fund which—
(a)is bona fide established under irrevocable trusts in connection with some trade or undertaking carried on wholly or partly outside the United Kingdom;
(b)has for its sole purpose [F65(subject to any enactment or Northern Ireland legislation requiring or allowing provision for the value of any rights to be transferred between schemes or between members of the same scheme)] the provision of superannuation benefits in respect of persons’ employment in the trade or undertaking wholly outside the United Kingdom; and
(c)is recognised by the employer and employed persons in the trade or undertaking;
and for the purposes of this subsection duties performed in the United Kingdom the performance of which is merely incidental to the performance of other duties outside the United Kingdom shall be treated as performed outside the United Kingdom.
(7)M14In this section—
“pension” includes a gratuity or any sum payable on or in respect of death or, in the case of a pension falling within subsection (2)(g) above, ill-health, and a return of contributions with or without interest thereon or any other addition thereto;
“overseas territory” means any territory or country outside the United Kingdom;
“the Pensions (Increase) Acts” means the M15Pensions (Increase) Act 1971 and any Act passed after that Act for purposes corresponding to the purposes of that Act;
“United Kingdom trust territory” means a territory administered by the government of the United Kingdom under the trusteeship system of the United Nations.
(8)F63. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[F66(9)For the purposes of this section, a person shall be taken to be employed in the public service of an overseas territory at any time when—
(a)he is employed in any capacity under the government of that territory, or under any municipal or other local authority in it,
(b)he is employed, in circumstances not falling within paragraph (a) above, by a body corporate established for any public purpose in that territory by an enactment of a legislature empowered to make laws for that territory, or
(c)he is the holder of a public office in that territory in circumstances not falling within either paragraph (a) or (b).
(10)For the purposes of subsection (9), references to the government of an overseas territory include references to a government constituted for two or more overseas territories, and to any authority established for the purpose of providing or administering services which are common to, or relate to matters of common interest to, two or more such territories.]
Textual Amendments
F63S. 615(1)(2)(4)(5)(8) repealed (6.4.2003 with effect in accordance with s. 723(1) of the repealing Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 6 para. 85, Sch. 8 Pt. 1 (with Sch. 7)
F64Words in s. 615(3) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 140 (with Sch. 2)
F65Words in s. 615(6)(b) inserted (27.7.1999) by Finance Act 1999 (c. 16), Sch. 10 para. 11
F66S. 615(9)(10) inserted (17.6.2002) by International Development Act 2002 (c. 1), s. 20(2), Sch. 3 para. 9(3) (with Sch. 5); S.I. 2002/1408, art. 2
Marginal Citations
M12Source-1970 s.218(3)
M13Source-1970 s.218(4)
M14Source-1970 s.214(5), 215(3), 216(4), 217(4)
F67. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F67S. 616 repealed (6.4.2003 with effect in accordance with s. 723(1) of the repealing Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 6 para. 86, Sch. 8 Pt. 1 (with Sch. 7)
(1)F68. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2)F68. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3)M16Subject to [F69subsections (4) and (5) below], no relief or deduction shall be given or allowed [F70for corporation tax purposes] in respect of any contribution paid by any person under—
(a)Part I of the Social Security [F71Contributions and Benefits Act 1992], or
(b)Part I of the Social Security [F72Contributions and Benefits (Northern Ireland) Act 1992].
[F73(4)Subsection (3) above shall not apply to a contribution if it is a secondary Class 1 contribution [F74, a Class 1A contribution or a Class 1B contribution] (within the meaning of Part I of either of those Acts) and is allowable—
(a)as a deduction in computing profits or gains;
(b)as expenses of management deductible under section 75 or [F75 falls to be brought into account under section 76 as expenses payable];[F76 or]
(c)as expenses of management or supervision deductible under section 121;
[F77(d)F78. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(e)F78. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]]
[F79(5)Subsection (3) above shall not apply for the purposes of deductions under Chapter 2 of Part 5 of ITEPA 2003 (in relation to which section 360A of that Act applies).]
(5)F80. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6)F81. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F68S. 617(1)(2) repealed (6.4.2003 with effect in accordance with s. 723(1) of the repealing Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 6 para. 87(2), Sch. 8 Pt. 1 (with Sch. 7)
F69Words in s. 617(3) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 262(2)(a) (with Sch. 2)
F70Words in s. 617(3) inserted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 262(2)(b) (with Sch. 2)
F71Words in s. 617(3)(a) substituted (1.7.1992) by Social Security (Consequential Provisions) Act 1992 (c. 6), ss. 4, 7(2), Sch. 2 para. 93(4)
F72Words in s. 617(3)(b) substituted (1.7.1992) by Social Security (Consequential Provisions) (Northern Ireland) Act 1992 (c. 9), ss. 4, 7(2), Sch. 2 para. 33(4)
F73S. 617(4) substituted (with effect in accordance with s. 65(5) of the amending Act) by Finance Act 1997 (c. 16), s. 65(3)
F74Words in s. 617(4) substituted (with effect in accordance with s. 61(2) of the amending Act) by Finance Act 1999 (c. 16), s. 61(1)
F75Words in s. 617(4)(b) substituted (28.9.2004 with effect in accordance with art. 1(2) of the amending S.I.) by The Finance Act 2004, Sections 38 to 40 and 45 and Schedule 6 (Consequential Amendment of Enactments) Order 2004, Sch. para. 31(2)
F76Word at the end of s. 617(4)(b) inserted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 262(3)(a) (with Sch. 2)
F77S. 617(4)(d)(e) substituted (6.4.2003 with effect in accordance with s. 723(1) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 6 para. 87(3) (with Sch. 7)
F78S. 617(4)(d)(e) repealed (6.4.2005 with effect in accordance with s. 883(1) of the repealing Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 262(3)(b), Sch. 3 (with Sch. 2)
F79S. 617(5) inserted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 262(4) (with Sch. 2)
F80S. 617(5) repealed (with effect in accordance with s. 147(3) of the repealing Act) by Finance Act 1996 (c. 8), s. 147(1), Sch. 41 Pt. 5(15), Note
F81S. 617(6) repealed (24.4.2000 for specified purposes and 9.4.2001 otherwise) by Welfare Reform and Pensions Act 1999 (c. 30), s. 89(1), Sch. 8 para. 1(3), Sch. 13 Pt. 5; S.I. 2000/1047, art. 2(2)(a), Sch. Pt. 1
Marginal Citations
M16Source-1970 s.219(3)
F83. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F82S. 617A inserted (prosp.) by Tax Credits Act 2002 (c. 21), s. 61, Sch. 3 para. 14 (the insertion being brought into force at 6.4.2003 by S.I. 2003/962, art. 2(3)(d)(iii))
F83S. 617A repealed (6.4.2003 with effect in accordance with s. 723(1) of the repealing Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 6 para. 88, Sch. 8 Pt. 1 (with Sch. 7)
F84. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F84Ss. 618-626 repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F85. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F85Ss. 618-626 repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F86. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F86Ss. 618-626 repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F87. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F87Ss. 618-626 repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F88. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F88Ss. 618-626 repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F89. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F89Ss. 618-626 repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F90. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F90Ss. 618-626 repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F91. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F91Ss. 618-626 repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F92. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F92Ss. 618-626 repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F93S. 627 repealed (with effect as mentioned in s. 228(4) of the repealing Act) by Finance Act 1994 (c. 9), s. 228(2)(a), Sch. 26 Pt. 5(25), Note 1
F94. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F94S. 628 repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
M17(1)For the purposes of this Chapter so much of any salary which—
(a)is payable to the holder of a qualifying office who is also a Member of the House of Commons, and
(b)is payable for a period in respect of which the holder is not a participant in relation to that office in arrangements contained in the Parliamentary pension scheme but is a participant in relation to his membership of the House of Commons in any such arrangements, or for any part of such a period,
as is equal to the difference between a Member’s pensionable salary and the salary which (in accordance with any such resolution as is mentioned in subsection (3)(a) below) is payable to him as a Member holding that qualifying office shall be treated as remuneration from the office of Member and not from the qualifying office.
(2)In this section—
“Member’s pensionable salary” means a Member’s ordinary salary under any resolution of the House of Commons which, being framed otherwise than as an expression of opinion, is for the time being in force relating to the remuneration of Members or, if the resolution provides for a Member’s ordinary salary thereunder to be treated for pension purposes as being at a higher rate, a notional yearly salary at that higher rate;
“qualifying office” means an office mentioned in section 2(2)(b), (c) or (d) of the Parliamentary and other M18Pensions Act 1987;
“the Parliamentary pension scheme” has the same meaning as in that Act;
and without prejudice to the power conferred by virtue of paragraph 13 of Schedule 1 to that Act, regulations under section 2 of that Act may make provision specifying the circumstances in which a person is to be regarded for the purposes of this section as being or not being a participant in relation to his Membership of the House of Commons, or in relation to any office, in arrangements contained in the Parliamentary pension scheme.
(3)In subsection (2) above “a Member’s ordinary salary”, in relation to any resolution of the House of Commons, means—
(a)if the resolution provides for salary to be paid to Members at different rates according to whether or not they are holders of particular offices, or are in receipt of salaries or pensions as the holders or former holders of particular offices, a Member’s yearly salary at the higher or highest rate; and
(b)in any other case, a Member’s yearly salary at the rate specified in or determined under the resolution.
Modifications etc. (not altering text)
C2S. 629 applied (with modifications) (with effect in accordance with s. 52(2) of the affecting Act) by Finance Act 1999 (c. 16), Sch. 5 para. 6
Marginal Citations
M17Source-1970 s.229
Modifications etc. (not altering text)
C3Pt. 14 Ch. 5 excluded (1.5.1995) by Finance Act 1995 (c. 4), s. 60(5)
F95. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F95Ss. 630-640A repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F96. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F96Ss. 630-640A repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F98. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F97S. 631A inserted (28.7.2000) by Finance Act 2000 (c. 17), Sch. 13 para. 7 (with Sch. 13 Pt. 2)
F98Ss. 630-640A repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F99. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F99Ss. 630-640A repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F101. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F100Ss. 632A, 632B inserted (6.4.2001) by Finance Act 2000 (c. 17), Sch. 13 para. 8 (with Sch. 13 Pt. 2)
F101Ss. 630-640A repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F102. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F100Ss. 632A, 632B inserted (6.4.2001) by Finance Act 2000 (c. 17), Sch. 13 para. 8 (with Sch. 13 Pt. 2)
F102Ss. 630-640A repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F103. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F103Ss. 630-640A repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F104. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F104Ss. 630-640A repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F106. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F105S. 634A inserted (1.5.1995) by Finance Act 1995 (c. 4), Sch. 11 para. 4
F106Ss. 630-640A repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F107. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F107Ss. 630-640A repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F108. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F108Ss. 630-640A repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F110. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F109S. 636A inserted (1.5.1995) by Finance Act 1995 (c. 4), Sch. 11 para. 7
F110Ss. 630-640A repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F111. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F111Ss. 630-640A repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F113. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F112Ss. 637, 637A substituted for s. 637 (1.5.1995) by Finance Act 1995 (c. 4), Sch. 11 para. 8
F113Ss. 630-640A repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F114. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F114Ss. 630-640A repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F116. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F115S. 638ZA inserted (6.4.2001) by Finance Act 2000 (c. 17), Sch. 13 para. 14 (with Sch 13 Pt. 2)
F116Ss. 630-640A repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F118. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F117S. 638A inserted (31.7.1998) by Finance Act 1998 (c. 36), s. 94(1)
F118Ss. 630-640A repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F119. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F119Ss. 630-640A repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F120. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F120Ss. 630-640A repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F122. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F121S. 640A inserted (with effect in accordance with Sch. 7 para. 4(2) of the amending Act) by Finance Act 1989 (c. 26), Sch. 7 para. 4(1)
F122Ss. 630-640A repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F123. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F123S. 641 repealed (with effect in accordance with Sch. 13 para. 17 of the repealing Act) by Finance Act 2000 (c. 17), Sch. 40 Pt, 2(4), Note 3 (with Sch. 13 Pt. 2)
F125. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F124S. 641A inserted (with effect in accordance with Sch. 13 para. 18(2) of the amending Act) by Finance Act 2000 (c. 17), Sch. 13 para. 18(1) (with Sch. 13 Pt. 2)
F125S. 641A repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F126. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F126S. 642 repealed (with effect in accordance with Sch. 13 para. 19 of the repealing Act) by Finance Act 2000 (c. 17), Sch. 40 Pt, 2(4), Note 4 (with Sch. 13 Pt. 2)
F127. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F127Ss. 643-646D repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F128. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F128Ss. 643-646D repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F129. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F129Ss. 643-646D repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F130. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F130Ss. 643-646D repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F132. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F131S. 646A inserted (with effect in accordance with Sch. 7 para. 8(2) of the amending Act) by Finance Act 1989 (c. 26), Sch. 7 para. 8(1)
F132Ss. 643-646D repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F134. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F133Ss. 646B, 646C inserted (with effect in accordance with Sch. 13 para. 22(2) of the amending Act) by Finance Act 2000 (c. 17), Sch. 13 para. 22(1) (with Sch. 13 Pt. 2)
F134Ss. 643-646D repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F135. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F133Ss. 646B, 646C inserted (with effect in accordance with Sch. 13 para. 22(2) of the amending Act) by Finance Act 2000 (c. 17), Sch. 13 para. 22(1) (with Sch. 13 Pt. 2)
F135Ss. 643-646D repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F137. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F136S. 646D inserted (with effect in accordance with Sch. 13 para. 23(2) of the amending Act) by Finance Act 2000 (c. 17), Sch. 13 para. 23(1) (with Sch. 13 Pt. 2)
F137Ss. 643-646D repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F138. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F138Ss. 647-648A repealed (6.4.2003 with effect in accordance with s. 723(1) of the repealing Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 6 para. 96, Sch. 8 Pt. 1 (with Sch. 7)
F139. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F139Ss. 647-648A repealed (6.4.2003 with effect in accordance with s. 723(1) of the repealing Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 6 para. 96, Sch. 8 Pt. 1 (with Sch. 7)
[F140F141. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F140S. 648A and preceding cross-heading inserted (with application in accordance with s. 109(2) of the amending Act) by Finance Act 1994 (c. 9), s. 109(1)
F141Cross-heading preceding s. 648A omitted (1.5.1995) by virtue of Finance Act 1995 (c. 4), Sch. 11 para. 12
F142. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F140S. 648A and preceding cross-heading inserted (with application in accordance with s. 109(2) of the amending Act) by Finance Act 1994 (c. 9), s. 109(1)
F142Ss. 647-648A repealed (6.4.2003 with effect in accordance with s. 723(1) of the repealing Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 6 para. 96, Sch. 8 Pt. 1 (with Sch. 7)
F144. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]]
Textual Amendments
F140S. 648A and preceding cross-heading inserted (with application in accordance with s. 109(2) of the amending Act) by Finance Act 1994 (c. 9), s. 109(1)
F143S. 648B inserted (1.5.1995) by Finance Act 1995 (c. 4), Sch. 11 para. 12
F144Ss. 648B-651A repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F145. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F145Ss. 648B-651A repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F146. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F146Ss. 648B-651A repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F148. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F147S. 650A inserted (with effect in accordance with s. 95(4) of the amending Act) by Finance Act 1998 (c. 36), s. 95(1)
F148Ss. 648B-651A repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F149. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F149Ss. 648B-651A repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F151. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F150S. 651A inserted (31.7.1998) by Finance Act 1998 (c. 36), s. 96(1)
F151Ss. 648B-651A repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F152. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F152S. 652 repealed (1.10.2000) by Finance Act 1998 (c. 36), s. 96(4), Sch. 27 Pt. 3(21), Note; S.I. 2000/2319, art. 2
F153. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F153Ss. 653-655 repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F155. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F154S. 653A inserted (with effect in accordance with s. 97(2) of the amending Act) by Finance Act 1998 (c. 36), s. 97(1)
F155Ss. 653-655 repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F156. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F156Ss. 653-655 repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F157. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F157Ss. 653-655 repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
(1)M19Subject to section 657, a purchased life annuity shall, for the purposes of the provisions of the [F158Corporation Tax Acts] relating to tax on annuities and other annual payments, be treated as containing a capital element and, to the extent of the capital element, as not being an annual payment or in the nature of an annual payment; but the capital element in such an annuity shall be taken into account in computing profits or gains or losses for [F159other corporation tax purposes] in any circumstances in which a lump sum payment would be taken into account.
(2)M20Where, in the case of any purchased life annuity to which this section applies, the amount of any annuity payment (but not the term of the annuity) depends on any contingency other than the duration of a human life or lives—
(a)the capital element shall be determined by reference—
(i)to the amount or value of the payments made or other consideration given for the grant of the annuity (“the purchase price”); and
(ii)to the expected term of the annuity, as at the date when the first annuity payment began to accrue, expressed in years (and any odd fraction of a year), and determined by reference to the prescribed tables of mortality;
and in head (ii) above “term” means the period from the date when the first annuity payment begins to accrue to the date when the last payment becomes payable;
(b)the capital element in any annuity payment made in respect of a period of 12 months shall be a fraction—
of the purchase price, where E is the expected term referred to in paragraph (a)(ii) above;
(c)the capital element in any annuity payment made in respect of a period of less than, or more than, 12 months shall be the amount at (b) above reduced or, as the case may be, increased, in the same proportion as the length of that period bears to a period of 12 months;
(d)subsection (3) below shall not apply but paragraphs (a) and (b) of subsection (4) below shall apply as they apply to that subsection.
(3)Subject to subsection (2) above, in the case of any purchased life annuity to which this section applies—
(a)M21the capital element shall be determined by reference to the amount or value of the payments made or other consideration given for the grant of the annuity; and
(b)the proportion which the capital element in any annuity payment bears to the total amount of that payment shall be constant for all payments on account of the annuity; and
(c)where neither the term of the annuity nor the amount of any annuity payment depends on any contingency other than the duration of a human life or lives, that proportion shall be the same proportion which the total amount or value of the consideration for the grant of the annuity bears to the actuarial value of the annuity payments as determined in accordance with subsection (4) below; and
(d)M22where either the term of the annuity or the amount of any annuity payment (but not both) depends on any contingency other than the duration of a human life or lives, that proportion shall be such as may be just, having regard to paragraph (c) above and to the contingencies affecting the annuity; and
(e)where both the term of the annuity and the amount of any annuity payment depend on any contingency other than the duration of a human life or lives, that proportion shall be such as may be just, having regard to subsection (2) above and to the contingencies affecting the annuity.
(4)M23For the purposes of subsection (3) above—
(a)any entire consideration given for the grant of an annuity and for some other matter shall be apportioned as appears just (but so that a right to a return of premiums or other consideration for an annuity shall not be treated for this purpose as a distinct matter from the annuity);
(b)where it appears that the amount or value of the consideration purporting to be given for the grant of an annuity has affected, or has been affected by, the consideration given for some other matter, the aggregate amount or value of those considerations shall be treated as one entire consideration given for both and shall be apportioned under paragraph (a) above accordingly; and
(c)the actuarial value of any annuity payments shall be taken to be their value as at the date when the first of those payments begins to accrue, that value being determined by reference to the prescribed tables of mortality and without discounting any payment for the time to elapse between that date and the date it is to be made.
(5)Where a person making a payment on account of any life annuity has been notified in the prescribed manner of any decision as to its being or not being a purchased life annuity to which this section applies or as to the amount of the capital element (if any), and has not been notified of any alteration of that decision, the notice shall be conclusive as to those matters for the purpose of determining the amount of income tax which [F160the person] is entitled or required to deduct from the payment, or for which [F160the person] is chargeable in respect of it.
(6)Where a person making a payment on account of a purchased life annuity to which this section applies has not been notified in the prescribed manner of the amount of the capital element, the amount of income tax which [F160the person] is entitled or required to deduct from the payment, or for which [F160the person] is chargeable in respect of it, shall be the same as if the annuity were not a purchased life annuity to which this section applies.
[F161(7)In using the prescribed tables of mortality to determine—
(a)the expected term of an annuity for the purposes of subsection (2)(a) above, or
(b)the actuarial value of any annuity payments for the purposes of subsection (4)(c) above,
the age, as at the date when the first of the annuity payments begins to accrue, of a person during whose life the annuity is payable shall be taken to be the number of years of his age at his last birthday preceding that date.
(8)In any case where it is not possible to determine the expected term of an annuity for the purposes of subsection (2)(a) above by reference to the prescribed tables of mortality, that term shall for those purposes be such period as may be certified by the Government Actuary or the Deputy Government Actuary.
(9)In any case where it is not possible to determine the actuarial value of any annuity payments for the purposes of subsection (4)(c) above by reference to the prescribed tables of mortality, that value shall for those purposes be such amount as may be certified by the Government Actuary or the Deputy Government Actuary.]
Textual Amendments
F158Words in s. 656(1) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 268(2)(a) (with Sch. 2)
F159Words in s. 656(1) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 268(2)(b) (with Sch. 2)
F160Words in s. 656(5)(6) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 268(3) (with Sch. 2)
F161S. 656(7)-(9) inserted (retrospectively) by Finance Act 1991 (c. 31, SIF 63:1), s. 76(1)
Marginal Citations
M19Source-1970 s.230(1)
M20Source-1970 s.230(2A); 1970(F) Sch.4 8
M21Source-1970 s.230(2)(a)-(c)
M22Source-1970 s.230(2)(d), (2A); 1970(F) Sch.4 8
M23Source-1970 s.230(3)-(5)
M24(1)For the purposes of section 656—
“life annuity” means an annuity payable for a term ending with (or at a time ascertainable only by reference to) the end of a human life, whether or not there is provision for the annuity to end during the life on the expiration of a fixed term or on the happening of any event or otherwise, or to continue after the end of the life in particular circumstances; and
“purchased life annuity” means a life annuity granted for consideration in money or money’s worth in the ordinary course of a business of granting annuities on human life.
(2)Section 656 does not apply—
(a)to any annuity which would, apart from that section, be treated for the purposes of the provisions of the [F162Corporation Tax Acts] relating to tax on annuities and other annual payments as consisting to any extent in the payment or repayment of a capital sum;
(b)to any annuity where the whole or part of the consideration for the grant of the annuity consisted of sums satisfying the conditions for relief under section [F163266 or 273 [F164of this Act or section 459 of ITA 2007];]
(c)to any annuity purchased in pursuance of any direction in a will, or to provide for an annuity payable by virtue of a will or settlement out of income of property disposed of by the will or settlement (whether with or without resort to capital);
[F165(d)to any annuity under, or purchased with sums or assets held for the purposes of, a registered pension scheme; or
(e)to any annuity purchased by any person in recognition of another’s services (or past services) in any office or employment.]
Textual Amendments
F162Words in s. 657(2)(a) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 269 (with Sch. 2)
F163Words in s. 657(2)(b) substituted (6.4.2006) by Finance Act 2004 (c. 12), s. 284(1), Sch. 35 para. 27(2) (with Sch. 36)
F164Words in s. 657(2)(b) inserted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 141 (with Sch. 2)
F165S. 657(2)(d)(e) substituted for s. 657(2)(d)-(f) (6.4.2006) by Finance Act 2004 (c. 12), s. 284(1), Sch. 35 para. 27(3) (with Sch. 36)
Marginal Citations
M24Source-1970 s.230(6), (7); 1978 s.26(4); 1987 (No.2), s.41(3)
M25(1)Any question whether an annuity is a purchased life annuity to which section 656 applies, or what is the capital element in such an annuity, shall be determined by the inspector; but a person aggrieved by the inspector’s decision on any such question may appeal within the prescribed time to the Special Commissioners.
(2)Save as otherwise provided in this Chapter, the procedure to be adopted in giving effect to this Chapter shall be such as may be prescribed.
(3)The Board may make regulations for prescribing anything which is to be prescribed under this Chapter, and the regulations may apply for the purposes of this Chapter or of the regulations any provision of the Income Tax Acts, with or without modifications.
(4)Regulations under subsection (3) above may in particular make provision as to the time limit for making any claim for relief from or repayment of tax under this Chapter and as to all or any of the following matters, that is to say—
(a)as to the information to be furnished in connection with the determination of any question whether an annuity is a purchased life annuity to which section 656 applies or what is the capital element in an annuity, and as to the persons who may be required to furnish any such information;
(b)as to the manner of giving effect to the decision on any such question, and F166. . . as to the making of assessments for the purpose on the person entitled to the annuity; and
(c)as to the extent to which the decision on any such question is to be binding, and the circumstances in which it may be reviewed.
(5)[F167Any person who], for the purpose of obtaining F168. . . any relief from or repayment of tax under this Chapter, knowingly makes any false statement or false representation F168. . . shall be liable to a penalty not exceeding [F169£3,000].
[F170(6)It does not matter for whom that relief or repayment is to be obtained.]
Textual Amendments
F166Words in s. 658(4)(b) repealed (6.4.2007 with effect in accordance with s. 1034(1) of the repealing Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 142, Sch. 3 Pt. 1 (with Sch. 2)
F167Words in s. 658(5) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 270(2)(a) (with Sch. 2)
F168Words in s. 658(5) repealed (6.4.2005 with effect in accordance with s. 883(1) of the repealing Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 270(2)(b), Sch. 3 (with Sch. 2)
F1691989 s.170(4)(c)in relation to things done or omitted to be done on or after 27July 1989.Previously
“£500”.
F170S. 658(6) inserted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 270(3) (with Sch. 2)
Modifications etc. (not altering text)
C4 For regulations see Part III Vol.5 (under
“Life annuities, purchased”).
Marginal Citations
M25Source-1970 s.231
F172. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F171S. 658A inserted (retrospectively) by Finance Act 1998 (c. 36), s. 98(1)
F172S. 658A repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F173S. 659 repealed (with effect in accordance with s. 81(7)(8) of the repealing Act) by Finance Act 1990 (c. 29), s. 81(4), Sch. 19 Pt. 4, Note 9
(1)For the purposes of sections F175. . . 613(4), 614(3) and (4) F175. . . —
(a)“investments” (or “investment”) includes futures contracts and options contracts, and
(b)income derived from transactions relating to such contracts shall be regarded as income derived from (or income from) such contracts.
F175. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2)For the purposes of subsection (1) above a contract is not prevented from being a futures contract or an options contract by the fact that any party is or may be entitled to receive or liable to make, or entitled to receive and liable to make, only a payment of a sum (as opposed to a transfer of assets other than money) in full settlement of all obligations.]
Textual Amendments
F174S. 659A inserted (with effect in accordance with s. 81(5) of the amending Act) by Finance Act 1990 (c. 29), s. 81(2)
F175Words in s. 659A(1) repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F177. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F176Ss. 659B, 659C inserted (with effect in accordance with s. 60 of the amending Act) by Finance Act 1995 (c. 4), s. 59(5)
F177Ss. 659B-659D repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F178. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F176Ss. 659B, 659C inserted (with effect in accordance with s. 60 of the amending Act) by Finance Act 1995 (c. 4), s. 59(5)
F178Ss. 659B-659D repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
F180. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F179S. 659D inserted (27.7.1999) by Finance Act 1999 (c. 16), Sch. 10 para. 17
F180Ss. 659B-659D repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
(1)The exemptions specified below do not apply to income derived from investments, deposits or other property held as a member of a property investment LLP [F182(see section 1004 of ITA 2007)].
(2)The exemptions are those provided by—
F183. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F183. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
section 613(4) (Parliamentary pension funds),
section 614(3) (certain colonial, &c. pension funds),
section 614(4) (the Overseas Service Pension Fund),
section 614(5) (other pension funds for overseas employees),
F183. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F183. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3)The income to which subsection (1) above applies includes relevant stock lending fees, in relation to any investments, to which any of the provisions listed in subsection (2) above would apply by virtue of section 129B.
(4)Section 659A (treatment of futures and options) applies for the purposes of subsection (1) above.]
Textual Amendments
F181S. 659E inserted (6.4.2001) by Finance Act 2001 (c. 9), s. 76(2), Sch. 25 para. 2
F182Words in s. 659E(1) inserted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 143 (with Sch. 2)
F183S. 659E(2): entries repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3, Note (with Sch. 36)
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