Income and Corporation Taxes Act 1988 (c. 1)

PART XIV U.K. PENSION SCHEMES, SOCIAL SECURITY BENEFITS, LIFE ANNUITIES ETC.

CHAPTER I U.K. RETIREMENT BENEFIT SCHEMES

Modifications etc. (not altering text)

C1 Pt. 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

Approval of schemes U.K.

590C Earnings cap. U.K.

(1) In arriving at an employee’s final remuneration for the purposes of section 590(3)(a) or (d), any excess of what would be his final remuneration (apart from this section) over the permitted maximum for the year of assessment in which his participation in the scheme ceases shall be disregarded.

(2) In subsection (1) above “the permitted maximum”, in relation to a year of assessment, means the figure found for that year by virtue of subsections (3) and (4) below.

(3) For the years 1988-89 and 1989-90 the figure is £60,000.

(4) For any subsequent year of assessment the figure is also £60,000, subject to [F1 subsections (5) and (5A)] below.

(5) If the retail prices index for the month of [F2 September] preceding a year of assessment falling within subsection (4) above is higher than it was for the previous [F2 September], the figure for that year shall be an amount arrived at by—

(a) increasing the figure for the previous year of assessment by the same percentage as the percentage increase in the retail prices index, and

(b) if the result is not a multiple of £600, rounding it up to the nearest amount which is such a multiple.

[F3 (5A) If the retail prices index for the month of September preceding a year of assessment falling within subsection (4) above is not higher than it was for the previous September, the figure for that year shall be the same as the figure for the previous year of assessment.]

(6) The Treasury shall in the year of assessment 1989-90, and in each subsequent year of assessment, make an order specifying the figure which is by virtue of this section the figure for the following year of assessment.

Textual Amendments

F1 Words in s. 590C(4) substituted (27.7.1993 with effect for the year 1994-95 and subsequent years of assessment) by 1993 c. 34, s. 107(5)(8)

F2 Word in s. 590C(5) substituted (27.7.1993 with effect for the year 1994-95 and subsequent years of assessment) by 1993 c. 34, s. 107(4)(8)

F3 S. 590C(5A) inserted (27.7.1993 with effect for the year 1994-95 and subsequent years of assessment) by 1993 c. 34, s. 107(5)(8)

Modifications etc. (not altering text)

C2 S. 590C amended (1990-91) by S.I. 1990/679, art. 2

S. 590C amended (1991-92) by S.I. 1991/734, art. 2

S. 590C amended (1992-93) by S.I. 1992/624, art. 2

S. 590C amended (1993-94) by 1993 c. 34, s.106 (in place of S.I. 1993/757, art. 2)

S. 590C amended (1994-95) by S.I. 1993/2950, art. 2

S. 590C amended (1995-96) by S.I. 1994/3009, art. 2

S. 590C amended (1996-97) by S.I. 1995/3034, art. 2

S. 590C amended (1997-98) by S.I. 1996/2951, art. 2

S. 590C amended (1998-99) by S.I. 1998/758, art. 2

S. 590C amended (1999-2000) by S.I. 1999/592, art. 2

S. 590C amended (2000-01) by S.I. 2000/807, art. 2

S. 590C amended (2001-02) by S.I. 2001/637, art. 2

S. 590C amended (2002-03) by S.I. 2002/700, art. 2

S. 590C amended (2003-04) by S.I. 2003/843, art. 2

S. 590C amended (2004-05) by S.I. 2004/773, art. 2

S. 590C amended (2005-06) by S.I. 2005/720, art. 2

C3 S. 590C(1) applied (31.3.1995) by Judicial Pensions and Retirement Act 1993 (c. 8), ss. 3(3)(a)(b), 31(2); S.I. 1995/631, art. 2