Income and Corporation Taxes Act 1988

CHAPTER II U.K. OTHER PENSION FUNDS AND SOCIAL SECURITY BENEFITS AND CONTRIBUTIONS

613 Parliamentary pension funds. U.K.

[F1 (1) M1 The 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 M2 House 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) F2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) M3 The respective trustees of—

(a) the House of Commons Members’ Fund established under section 1 of that Act of 1939;

(b) the Parliamentary Contributory Pension Fund;

[F3 (bb) any fund maintained for the purposes of a pension scheme—

(i) established for members of the Scottish Parliament under section 81(4) of the Scotland Act 1998,

(ii) established for members of the Welsh Assembly under section 18(2) of the Government of Wales Act 1998, or

(iii) established for members of the Northern Ireland Assembly under section 48(2) of the Northern Ireland Act 1998;]

(c) the Members’ Contributory Pension (Northern Ireland) Fund constituted under section 3(2) of the M4 Ministerial Salaries and Members’ Pensions Act (Northern Ireland) 1965; and

(d) the Assembly Contributory Pension Fund constituted under the M5 Assembly Pensions (Northern Ireland) Order 1976;

shall be entitled to exemption from income tax in respect of all income derived from those [F4 funds] or any investment of those [F4 funds].

A claim under this subsection shall be made to the Board.

Textual Amendments

F1 S. 613(1)(2) (which were repealed by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 6 para. 83, Sch. 8 Pt. 1) restored (retrospectively) by Finance Act 2005 (c. 7), Sch. 10 para. 63

F2 S. 613(3) repealed (6.4.2003 with effect in accordance with s. 723(1) of the repealing Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 6 para. 83, Sch. 8 Pt. 1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)

F3 S. 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

F4 Words in s. 613(4) substituted (with effect in accordance with s. 52(2) of the amending Act) by Finance Act 1999 (c. 16), Sch. 5 para. 4

Marginal Citations

M1 Source-1970 s.211(1), (4)

M2 1939 c. 49.

M3 Source-1970 s.211(2) 1981 s.50(1); PPA 1987 Sch.3 2(1)

M4 1965 c. 18 (N.I.).

M5 S.I. 1976/1779.

614 Exemptions and reliefs in respect of income from investments etc. of certain pension schemes. U.K.

(1) F5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) M6 Any interest or dividends received by the person in whom is vested any of the Family Pension Funds mentioned in section 273 of the M7 Government of India Act 1935, and having effect as a scheme made under section 2 of the M8 Overseas Pensions Act 1973, on sums forming part of that fund shall be exempt from income tax.

[F6 (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 [F7 Chapter 8 of Part 4 of ITTOIA 2005 (profits from deeply] discounted securities) and derives from any investment forming part of that fund.]

(3) M9 Income derived from investments or deposits of any fund referred to in [F8 section 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) M10 In respect of income derived from investments or deposits of the Overseas Service Pensions Fund established pursuant to section 7(1) of the M11 Overseas 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) M12 In 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) M13 A claim under this section shall be made to the Board.

Textual Amendments

F5 S. 614(1) repealed (3.5.1994) by Finance Act 1994 (c. 9), Sch. 26 Pt. 5(22)

F6 S. 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)

F7 Words 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)

F8 Words 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

M6 Source-1970 s.213(1)

M7 1935 c. 2.

M8 1973 c. 21.

M9 Source-1970 s.214(2), 216(2); 1973 s.53(1)

M10 Source-1970 s.217(2), (4)

M11 1966 c. 21.

M12 Source-1970 s.218(1)

M13 Source-1970 s.212(3), 213(1), 214(3), 216(2), 217(2), 218(1); 1987 Sch.15 2(13)

615 Exemption from tax in respect of certain pensions. U.K.

(1) F9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) F9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) M14 Where 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 section 349(1) by the trustees or other persons having the control of the fund.

(4) F9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) F9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) M15 Subsection (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 [F10 (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) M16 In 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 M17 Pensions (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) F9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F11 (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

F9 S. 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)

F10 Words in s. 615(6)(b) inserted (27.7.1999) by Finance Act 1999 (c. 16), Sch. 10 para. 11

F11 S. 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

M14 Source-1970 s.218(3)

M15 Source-1970 s.218(4)

M16 Source-1970 s.214(5), 215(3), 216(4), 217(4)

M17 1971 c. 56.

616 Other overseas pensions. U.K.

F12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F12 S. 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)

617 Social security benefits and contributions. U.K.

(1) F13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) F13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) M18 Subject to [F14 subsections (4) and (5) below], no relief or deduction shall be given or allowed [F15 for corporation tax purposes] in respect of any contribution paid by any person under—

(a) Part I of the Social Security [F16 Contributions and Benefits Act 1992], or

(b) Part I of the Social Security [F17 Contributions and Benefits (Northern Ireland) Act 1992].

[F18 (4) Subsection (3) above shall not apply to a contribution if it is a secondary Class 1 contribution [F19 , 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 [F20 falls to be brought into account under section 76 as expenses payable];[F21 or]

(c) as expenses of management or supervision deductible under section 121;

[F22 (d) F23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(e) F23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]]

[F24 (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) F25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) F26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F13 S. 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)

F14 Words 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)

F15 Words 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)

F16 Words 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)

F17 Words 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)

F18 S. 617(4) substituted (with effect in accordance with s. 65(5) of the amending Act) by Finance Act 1997 (c. 16), s. 65(3)

F19 Words 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)

F20 Words 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)

F21 Word 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)

F22 S. 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)

F23 S. 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)

F24 S. 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)

F25 S. 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

F26 S. 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

M18 Source-1970 s.219(3)

[F27 617A Tax credits under Part 1 of Tax Credits Act 2002 U.K.

F28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

Textual Amendments

F27 S. 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))

F28 S. 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)