148 Mis-sold personal pensions etc.U.K.
(1)Income tax shall not be chargeable on any payment falling within subsection (3) or (5) below.
(2)Receipt of a payment falling within subsection (3) below shall not be regarded for the purposes of capital gains tax as the disposal of an asset.
(3)A payment falls within this subsection if it is a capital sum by way of compensation for loss suffered, or reasonably likely to be suffered, by a person in a case where that person, or some other person, acting in reliance on bad investment advice at least some of which was given during the period beginning with 29th April 1988 and ending with 30th June 1994,—
(a)has, while eligible, or reasonably likely to become eligible, to be a member of an occupational pension scheme, instead become a member of a personal pension scheme or entered into a retirement annuity contract;
(b)has ceased to be a member of, or to pay contributions to, an occupational pension scheme and has instead become a member of a personal pension scheme or entered into a retirement annuity contract;
(c)has transferred to a personal pension scheme accrued rights of his under an occupational pension scheme; or
(d)has ceased to be a member of an occupational pension scheme and has instead (by virtue of such a provision as is mentioned in section 591(2)(g) of the Taxes Act 1988) entered into arrangements for securing relevant benefits by means of an annuity contract.
(4)A payment chargeable to income tax apart from subsection (1) above may nevertheless be regarded as a capital sum for the purpose of determining whether it falls within subsection (3) above.
(5)A payment falls within this subsection if and to the extent that it is a payment of interest, on the whole or any part of a capital sum such as is mentioned in subsection (3) above, for a period ending on or before the earliest date on which a determination (whether or not subsequently varied on an appeal or in any other proceedings) of the amount of the particular capital sum in question is made, whether by agreement or by a decision of—
(a)a court, tribunal or commissioner,
(b)an arbitrator or (in Scotland) arbiter, or
(c)any other person appointed for the purpose.
(6)In this section—
“bad investment advice” means investment advice in respect of which an action against the person who gave it has been, or may be, brought—
(a)in or for negligence;
(b)for breach of contract;
(c)by reason of a breach of a fiduciary obligation; or
(d)by reason of a contravention which is actionable under section 62 of the M1Financial Services Act 1986;
“investment advice” means advice such as is mentioned in paragraph 15 of Schedule 1 to the M2Financial Services Act 1986;
“occupational pension scheme” means—
(a)a scheme approved, or being considered for approval, under Chapter I of Part XIV of the Taxes Act 1988 (retirement benefit schemes);
(b)a relevant statutory scheme, as defined in section 611A(1) of that Act; or
(c)a fund to which section 608 of that Act applies (superannuation funds approved before 6th April 1980 etc);
“personal pension scheme” has the meaning given by section 630(1) of the Taxes Act 1988;
“relevant benefits” has the meaning given by section 612(1) of the Taxes Act 1988;
“retirement annuity contract” means a contract made before 1st July 1988 and approved by the Board under or by virtue of any provision of Chapter III of Part XIV of the Taxes Act 1988.
(7)This section shall have effect, and be taken always to have had effect, in relation to any payment falling within subsection (3) or (5) above, whether made before or after the passing of this Act.