Income and Corporation Taxes Act 1988

615 Exemption from tax in respect of certain pensions.U.K.

(1)F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2)F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)M1Where an annuity is paid from a superannuation fund to which this subsection applies to a person who is not resident in the United Kingdom, income tax shall not be deducted from any payment of the annuity or accounted for under [F2Chapter 6 of Part 15 of ITA 2007 (deduction from annual payments and patent royalties)] by the trustees or other persons having the control of the fund.

(4)F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5)F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6)M2Subsection (3) above applies to any superannuation fund which—

(a)is bona fide established under irrevocable trusts in connection with some trade or undertaking carried on wholly or partly outside the United Kingdom;

(b)has for its sole purpose [F3(subject to any enactment or Northern Ireland legislation requiring or allowing provision for the value of any rights to be transferred between schemes or between members of the same scheme)] the provision of superannuation benefits in respect of persons’ employment in the trade or undertaking wholly outside the United Kingdom; and

(c)is recognised by the employer and employed persons in the trade or undertaking;

and for the purposes of this subsection duties performed in the United Kingdom the performance of which is merely incidental to the performance of other duties outside the United Kingdom shall be treated as performed outside the United Kingdom.

(7)M3In this section—

  • “pension” includes a gratuity or any sum payable on or in respect of death or, in the case of a pension falling within subsection (2)(g) above, ill-health, and a return of contributions with or without interest thereon or any other addition thereto;

  • “overseas territory” means any territory or country outside the United Kingdom;

  • “the Pensions (Increase) Acts” means the M4Pensions (Increase) Act 1971 and any Act passed after that Act for purposes corresponding to the purposes of that Act;

  • “United Kingdom trust territory” means a territory administered by the government of the United Kingdom under the trusteeship system of the United Nations.

(8)F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F4(9)For the purposes of this section, a person shall be taken to be employed in the public service of an overseas territory at any time when—

(a)he is employed in any capacity under the government of that territory, or under any municipal or other local authority in it,

(b)he is employed, in circumstances not falling within paragraph (a) above, by a body corporate established for any public purpose in that territory by an enactment of a legislature empowered to make laws for that territory, or

(c)he is the holder of a public office in that territory in circumstances not falling within either paragraph (a) or (b).

(10)For the purposes of subsection (9), references to the government of an overseas territory include references to a government constituted for two or more overseas territories, and to any authority established for the purpose of providing or administering services which are common to, or relate to matters of common interest to, two or more such territories.]

Textual Amendments

F1S. 615(1)(2)(4)(5)(8) repealed (6.4.2003 with effect in accordance with s. 723(1) of the repealing Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 6 para. 85, Sch. 8 Pt. 1 (with Sch. 7)

F2Words in s. 615(3) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 140 (with Sch. 2)

F3Words in s. 615(6)(b) inserted (27.7.1999) by Finance Act 1999 (c. 16), Sch. 10 para. 11

Marginal Citations

M1Source-1970 s.218(3)

M2Source-1970 s.218(4)

M3Source-1970 s.214(5), 215(3), 216(4), 217(4)