Income and Corporation Taxes Act 1988

596 Exceptions from section 595. U.K.

M1 (1) [F1 Section 595(1) shall not] apply where the retirement benefits scheme in question is—

(a) an approved scheme, or

(b) a [F2 relevant] statutory scheme, or

(c) a scheme set up by a government outside the United Kingdom for the benefit, or primarily for the benefit of, its employees.

(2) [F3 Section 595(1) shall not] apply for any year of assessment—

(a) where the employee performs the duties of his employment in such circumstances that no tax is chargeable under Case I or II of Schedule E in respect of the emoluments of his employment (or would be so chargeable were there such emoluments), or

(b) where the emoluments from the employment are foreign emoluments within the meaning of section 192 and the Board are satisfied, on a claim made by the employee, that the retirement benefits scheme in question corresponds to such a scheme as is mentioned in paragraph (a), (b) or (c) of subsection (1) above.

(3) Where, in respect of the provision for an employee of any relevant benefits—

(a) a sum has been deemed to be income of his by virtueeitherF4 of subsection (1)or subsection (2) F4 of section 595, and

(b) subsequently, the employee proves to the satisfaction of the Board that—

(i) no payment in respect of, or in substitution for, the benefits has been made, and

(ii) some event has occurred by reason of which no such payment will be made,

and makes application for relief under this subsection within six years from the time when that event occurred,

the Board shall give relief in respect of tax on that sum by repayment or otherwise as may be appropriate; and if the employee satisfies the Board as mentioned above in relation to some particular part, but not the whole, of the benefits, the Board may give such relief as may seem to them just and reasonable.

[F5 (4) Relief shall not be given under subsection (3) above in respect of tax on any sum if—

(a) the reason for there having been no payment in respect of, or in substitution for, the benefits, or part of the benefits, in question, or

(b) the event by reason of which there will be no such payment,

is a reduction or cancellation, as a consequence of any pension sharing order or provision, of the employee’s rights in respect of the benefits.]

Textual Amendments

F1 1989 s.75and Sch.6 para.8(2)(a), 8(3)for 1988-89and subsequent years. Previously

“Neither subsection (1) nor subsection (2) of section 595 shall”

in both places.

F2 1989 s.75and Sch.6 paras.8(2)(b)and 18(1)on and after 14March 1989.

F3 1989 s.75and Sch.6 para.8(2)(a), 8(3)for 1988-89and subsequent years. Previously

“Neither subsection (1) nor subsection (2) of section 595 shall”

in both places.

F4 Words repealed by 1989 ss.75, 187and Schs. 6 paras.8(4)and 18(6)and 17 Part IVexcept where a sum has been deemed to be income by virtue of s.592(2)before 6April 1988.

F5 S. 596(4) inserted (27.7.1999) by Finance Act 1999 (c. 16), Sch. 10 para. 5

Marginal Citations

M1 Source-1970(F) s.24; 1974 s.21(7)