This section applies to any pension paid by or on behalf of a person who is outside the United Kingdom to a person who is resident in the United Kingdom.

But this section does not apply to a pension if any provision of Chapters 5 to 14 of this Part applies to it.

For pensions paid by or on behalf of a person who is in the United Kingdom, see Chapter 3 of this Part.

For the purposes of this Chapter “pension” includes a pension which is paid voluntarily, or is capable of being discontinued, if conditions A and B are met.

In this section “office” includes in particular any position which has an existence independent of the person who holds it and may be filled by successive holders.

If section 573 applies, the taxable pension income for a tax year is F2the full amount of the pension income arising in the tax year, but subject to subsections (2) and (3).

The full amount of the pension income arising in the tax year is to be calculated on the basis that the pension is 90% of its actual amount, unless as a result of subsection (3) the pension income is charged in accordance with section 832 of ITTOIA 2005 (relevant foreign income charged on the remittance basis).

That pension income is treated as relevant foreign income for the purposes of Chapters 2 and 3 of Part 8 of that Act (relevant foreign income: remittance basis and deductions and reliefs).

But if that pension income arises in the Republic of Ireland, section 839 of that Act (annual payments payable out of relevant foreign income) applies with the omission of condition B and subsection (5)(a).

See also Chapter 4 of that Part (unremittable income).