Income and Corporation Taxes Act 1988

612 Other interpretative provisions, and regulations for purposes of this Chapter.U.K.

(1)M1In this Chapter, except where the context otherwise requires—

  • F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

  • “approved scheme” means a retirement benefits scheme for the time being approved by the Board for the purposes of this Chapter;

  • “director” in relation to a company includes—

    (a)

    in the case of a company the affairs of which are managed by a board of directors or similar body, a member of that board or body,

    (b)

    in the case of a company the affairs of which are managed by a single director or similar person, that director or person,

    (c)

    in the case of a company the affairs of which are managed by the members themselves, a member of that company;

    and includes a person who is to be or has been a director;

  • “employee”—

    (a)

    in relation to a company, includes any officer of the company, any director of the company and any other person taking part in the management of the affairs of the company, and

    (b)

    in relation to any employer, includes a person who is to be or has been an employee;

  • and “employer” and other cognate expressions shall be construed accordingly;

  • “exempt approved scheme” has the meaning given by section 592(1);

  • “final remuneration” means the average annual remuneration of the last three years’ service;

  • “pension” includes annuity;

  • “the permitted maximum” has the meaning given by section 590(3);

  • “relevant benefits” means any pension, lump sum, gratuity or other like benefit given or to be given on retirement or on death [F2, or by virtue of a pension sharing order or provision], or in anticipation of retirement, or, in connection with past service, after retirement or death, or to be given on or in anticipation of or in connection with any change in the nature of the service of the employee in question, except that it does not include any benefit which is to be afforded solely by reason of the disablement by accident of a person occurring during his service or of his death by accident so occurring and for no other reason;

  • “remuneration” does not include—

    (a)

    anything [F3which is chargeable to tax as employment income and] which arises from the acquisition or disposal of shares or an interest in shares or from a right to acquire shares; or

    (b)

    anything in respect of which tax is chargeable by virtue of [F4 Chapter 3 of Part 6 of ITEPA 2003 (payments and benefits on termination of employment etc.)];

  • “service” means service as an employee of the employer in question and other expressions, including “retirement”, shall be construed accordingly; and

  • “statutory scheme” means a retirement benefits scheme established by or under any enactment—

    (a)

    the particulars of which are set out in any enactment, or in any regulations made under any enactment, or

    (b)

    which has been approved as an appropriate scheme by a Minister or government department (including the head of a Northern Ireland department or a Northern Ireland department).

(2)M2Any reference in this Chapter [F5, in relation to a scheme,] to the provision of relevant benefits, or of a pension, for employees [F6or ex-spouses] includes a reference to the provision of relevant benefits or a pension by means of a contract between the administrator or the employer or the employee [F7or ex-spouse] and a third person; and any reference to pensions or contributions paid, or payments made, under a scheme includes a reference to pensions or contributions paid, or payments made, under such a contract entered into for the purposes of the scheme.

[F8(2A)In subsection (2) above the reference to the employer is a reference to the person who is the employer in relation to the scheme.]

(3)M3The Board may make regulations generally for the purpose of carrying the preceding provisions of this Chapter into effect.

Textual Amendments

F1S. 612(1): definition of "administrator" repealed (with effect in accordance with s. 103(3) of the repealing Act) by Finance Act 1994 (c. 9), s. 103(2), Sch. 26 Pt. 5(12), Note 4

F2Words in s. 612(1) inserted (27.7.1999) by Finance Act 1999 (c. 16), Sch. 10 para. 10(1)

F3S. 612(1): words in definition of "remuneration" 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. 82(a) (with Sch. 7)

F4S. 612(1): words in definition of "remuneration" 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. 82(b) (with Sch. 7)

F6Words in s. 612(2) substituted (27.7.1999) by Finance Act 1999 (c. 16), Sch. 10 para. 10(2)(b)

Modifications etc. (not altering text)

C1 Definition employed for purposes of S.I. 1987 No.1749, regn.2(1A) (“The Occupational Pension Schemes (Additional Voluntary Contributions) Regulations 1987”—in Part III Vol.5).

C2 See s.686—liability to additional rate of certain income of discretionary trusts.

C3 Interpretation employed for purposes of S.I. 1987 No.1749, regn.2(1) (“The Occupational Pension Schemes (Additional Voluntary Contributions) Regulations 1987”

in Part III Vol.5).

C4S. 612(2) applied (6.4.2003 with effect in accordance with s. 723(1) of the affecting Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 400(2) (with Sch. 7)

C5 For regulations see Part III Vol.5

Marginal Citations

M1Source-1970(F) s.26 (1); 1971 Sch.3 12(4); 1986 Sch.12 1(10); 1987 (No.2) Sch.3 7

M2Source-1970(F) s.26(2); 1987 (No.2) Sch.3 8

M3Source-1970(F) Sch.5 Part II 10; 1971 Sch.3 13(3)