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Income and Corporation Taxes Act 1988

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Changes over time for: CHAPTER II

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Version Superseded: 06/04/2017

Status:

Point in time view as at 15/09/2016.

Changes to legislation:

Income and Corporation Taxes Act 1988, CHAPTER II is up to date with all changes known to be in force on or before 18 March 2025. 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. Help about Changes to Legislation

CHAPTER IIU.K. OTHER PENSION FUNDS AND SOCIAL SECURITY BENEFITS AND CONTRIBUTIONS

613 Parliamentary pension funds.U.K.

[F1(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 [F2amounts deducted in pursuance of section 4 of the House of Commons Members' Fund Act 2016]; 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)F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)F4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4)M2The F5. . . trustees of—

(a)the House of Commons Members’ Fund [F6specified in section 1 of the 2016 Act];

(b)F7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F8(bb)F7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

(c)F7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d)F7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

shall be entitled to exemption from income tax in respect of all income derived from [F9that Fund] or any investment of [F9that Fund].

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

Textual Amendments

F4S. 613(3) repealed (6.4.2003 with effect in accordance with s. 723(1) of the repealing Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 6 para. 83, Sch. 8 Pt. 1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)

F5Word in s. 613(4) repealed (6.4.2006) by Finance Act 2004 (c. 12), s. 284(1), Sch. 35 para. 26(a), Sch. 42 Pt. 3, Note (with Sch. 36)

F8S. 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

F9Words 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)

M2Source-1970 s.211(2) 1981 s.50(1); PPA 1987 Sch.3 2(1)

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

(1)F10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2)M3Any interest or dividends received by the person in whom is vested any of the Family Pension Funds mentioned in section 273 of the M4Government of India Act 1935, and having effect as a scheme made under section 2 of the M5Overseas Pensions Act 1973, on sums forming part of that fund shall be exempt from income tax.

[F11(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 [F12Chapter 8 of Part 4 of ITTOIA 2005 (profits from deeply] discounted securities) and derives from any investment forming part of that fund.]

(3)M6Income derived from investments or deposits of any fund referred to in [F13section 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)M7In respect of income derived from investments or deposits of the Overseas Service Pensions Fund established pursuant to section 7(1) of the M8Overseas 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 [F14not domiciled and not resident] in the United Kingdom.

(5)M9In 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 [F15not domiciled and not resident] in the United Kingdom.

(6)M10A claim under this section shall be made to the Board.

Textual Amendments

F11S. 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)

F12Words 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)

F13Words 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)

F14Words in s. 614(4) substituted (with effect in accordance with Sch. 46 para. 72 of the amending Act) by Finance Act 2013 (c. 29), Sch. 46 para. 28(a)

F15Words in s. 614(5) substituted (with effect in accordance with Sch. 46 para. 72 of the amending Act) by Finance Act 2013 (c. 29), Sch. 46 para. 28(b)

Marginal Citations

M3Source-1970 s.213(1)

M6Source-1970 s.214(2), 216(2); 1973 s.53(1)

M7Source-1970 s.217(2), (4)

M9Source-1970 s.218(1)

M10Source-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)F16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2)F16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)M11Where 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 [F17Chapter 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)F16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5)F16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6)M12Subsection (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 [F18(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)M13In 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 M14Pensions (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)F16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F19(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

F16S. 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)

F17Words 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)

Marginal Citations

M11Source-1970 s.218(3)

M12Source-1970 s.218(4)

M13Source-1970 s.214(5), 215(3), 216(4), 217(4)

616 Other overseas pensions.U.K.

F20. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F20S. 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.

F21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F21S. 617 repealed (1.4.2009 with effect in accordance with s. 1329(1) of the repealing Act) by Corporation Tax Act 2009 (c. 4), Sch. 1 para. 203, Sch. 3 Pt. 1 (with Sch. 2 Pts 1, 2)

[F22617A Tax credits under Part 1 of Tax Credits Act 2002U.K.

F23. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

Textual Amendments

F22S. 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))

F23S. 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)

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