[F1596A Charge to tax: benefits under non-approved schemes.U.K.
(1)Where in any year of assessment a person receives a benefit provided under a retirement benefits scheme which is not of a description mentioned in section 596(1)(a), (b) or (c), tax shall be charged in accordance with the provisions of this section.
(2)Where the benefit is received by an individual, he shall be charged to tax under Schedule E for that year.
(3)Where the benefit is received by a person other than an individual, the administrator of the scheme shall be charged to tax under Case VI of Schedule D for that year.
(4)The amount to be charged to tax is—
(a)in the case of a cash benefit, the amount received, and
(b)in the case of a benefit in kind, an amount equal to whatever is the cash equivalent of the benefit.
(5)In the case of the charge under Case VI of Schedule D, the rate of tax is 40 per cent. or such other rate (whether higher or lower) as may for the time being be specified by the Treasury by order.
(6)Tax shall not be charged under this section in the case of a benefit which is chargeable to tax under Schedule E by virtue of section 19(1)1.
(7)But where the amount chargeable to tax by virtue of section 19(1)1 is less than the amount which would be chargeable to tax under this section—
(a)subsection (6) above shall not apply, and
(b)the amount chargeable to tax under this section shall be reduced by the amount chargeable to tax by virtue of section 19(1)1.
(8)Tax shall not be charged under this section to the extent that the benefit received is attributable to the payment of a sum—
(a)which is deemed to be the income of a person by virtue of section 595(1), and
(b)in respect of which that person has been assessed to tax.
(9)For the purpose of subsection (8) above the provision of a benefit shall be presumed not to be attributable to the payment of such a sum as is mentioned in that subsection unless the contrary is shown.]
Textual Amendments
F1Ss. 596A, 596B inserted (with effect in accordance with Sch. 6 para. 18(7) of the amending Act) by Finance Act 1989 (c. 26), Sch. 6 para. 9