Modifications etc. (not altering text)
C1Pt. 14 Ch. 5 excluded (1.5.1995) by Finance Act 1995 (c. 4), s. 60(5)
(1)Subject to subsection (2) below, where funds held for the purposes of an approved personal pension scheme are used to acquire an annuity—
(a)the annuity shall be charged to tax under Schedule E and section 203 shall apply accordingly;
(b)the annuity shall not be charged to tax under Case III of Schedule D.
(2)As respects any approved personal pension scheme the Board may direct that, until such date as the Board may specify, annuities acquired with funds held for the purposes of the scheme shall be charged to tax as annual payments under Case III of Schedule D, and tax shall be deductible under sections 348 and 349 accordingly.
Valid from 01/05/1995
(1)Tax shall be charged under this section on any payment to a person under approved personal pension arrangements of such a lump sum as is mentioned in section 637A in a case where the member’s death occurred after his pension date in relation to the arrangement in question.
(2)Where a payment is chargeable to tax under this section, the scheme administrator shall be charged to income tax under Case VI of Schedule D and, subject to subsection (3) below, the rate of tax shall be 35 per cent.
(3)The Treasury may by order from time to time increase or decrease the rate of tax under subsection (2) above.
(4)The tax shall be charged on the amount paid or, if the rules of the scheme permit the scheme administrator to deduct the tax before payment, on the amount before deduction of tax; and the amount so charged to tax shall not be treated as income for any other purpose of the Tax Acts.]
Textual Amendments
F1S. 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)
F2S. 648B inserted (1.5.1995) by Finance Act 1995 (c. 4), Sch. 11 para. 12