Income and Corporation Taxes Act 1988

594 Exempt statutory schemes. U.K.

M1 (1) Any contribution paid by any officer or employee under a [F1 relevant] statutory scheme established under a public general Act [F2 shall be allowed to be deducted from employment income for] the year of assessment in which the contribution is paid; and relief shall not be given under section 266 or 273 in respect of any contribution allowable as a deduction under this section.

[F3 A deduction under this section may only be made once in respect of the same contribution.]

(2) [F4 Subject to subsection (3) below,] the amount allowed to be deducted by virtue of subsection (1) above in respect of contributions paid by a person in a year of assessment (whether under a single scheme or under two or more schemes) shall not exceed 15 per cent., or such higher percentage as the Board may in a particular case prescribe, of his remuneration for that year.

[F5 (3) Where a person’s remuneration for a year of assessment includes remuneration in respect of more than one office or employment, the amount allowed to be deducted by virtue of subsection (1) above in respect of contributions paid by the person in that year by virtue of any office or employment (whether under a single scheme or under two or more schemes) shall not exceed 15 per cent, or such higher percentage as the Board may in a particular case prescribe, of his remuneration for the year in respect of that office or employment.

(4) In arriving at a person’s remuneration for a year of assessment for the purposes of subsection (2) or (3) above, any excess of what would be his remuneration (apart from this subsection) over the permitted maximum for that year shall be disregarded.

(5) In subsection (4) above “permitted maximum”, in relation to a year of assessment, means the figure found for that year by virtue of subsections (6) and (7) below.

(6) For the year 1989-90 the figure is £60,000.

(7) For any subsequent year of assessment the figure is the figure found for that year, for the purposes of section 590C, by virtue of section 590C(4) [F6 to (5A)].]

Textual Amendments

F1 1989 s.75and Sch.6 paras.6(2)and 18(1)on and after 14March 1989.

F2 Words in s. 594(1) 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. 73(a) (with Sch. 7)

F3 Words in s. 594(1) inserted (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. 73(b) (with Sch. 7)

F4 1989 s.75and Sch.6 paras.6(3)and 18(4)for 1989-90and subsequent years.

F5 1989 s.75and Sch.6 paras.6(4)(5)and 18(4)for 1989-90and subsequent years. Subss.(4) to (7)do not have effect as regards such remuneration as may be prescribed by regulations.

F6 Words in s. 594(7) substituted (27.7.1993 with effect for the year 1994-95 and subsequent years of assessment) by 1993 c. 34, s. 107(6)(8)

Modifications etc. (not altering text)

C1 S. 594 applied (31.3.1995) by Judicial Pensions and Retirement Act 1993 (c. 8), ss. 10(4)(b)(ii), 31(2); S.I. 1995/631, art. 2

Marginal Citations

M1 Source-1970(F) s.22; 1972 s.74(3); 1987 (No.2) Sch.3 6