C5C6Part 9Pension income
Pt. 9 excluded by 2004 c. 12, Sch. 36 para. 45A(1) (as inserted (26.3.2015) by Finance Act 2015 (c. 11), Sch. 4 para. 19)
C1C2C3C4F1Chapter 5APENSIONS UNDER REGISTERED PENSION SCHEMES
Pt. 9 Ch. 5A inserted (6.4.2006) by Finance Act 2004 (c. 12), s. 284(1), Sch. 31 para. 6 (with Sch. 36)
Pt. 9 Ch. 5A restricted (6.4.2006) by Finance Act 2004 (c. 12), Sch. 36 para. 43(2) (with s. 283(5), Sch. 36)
Pt. 9 Ch. 5A modified (6.4.2006) by Finance Act 2004 (c. 12), Sch. 36 paras. 44, 45 (with s. 283(5), Sch. 36)
Pt. 9 Ch. 5A modified (1.4.2012 being "the specified day", see S.I. 2012/687, 688 and 966) by The Postal Services Act 2011 (Taxation) Regulations 2012 (S.I. 2012/764), regs. 1(1), 23(2)
Pt. 9 Ch. 5A modified (1.4.2012 being "the specified day", see S.I. 2012/687, 688 and 966) by The Postal Services Act 2011 (Taxation) Regulations 2012 (S.I. 2012/764), regs. 1(1), 24
C7C8F2579CATemporary non-residents
1
This section applies if a person is temporarily non-resident.
2
Any relevant withdrawals within subsection (3) are to be treated for the purposes of section 579B as if they accrued in the period of return F4, but only if the total amount of—
a
the relevant withdrawals within subsection (3), and
b
the relevant withdrawals (as defined by section 576A(4)) within section 576A(3) for the same temporary period of non-residence,
exceeds £100,000
3
A relevant withdrawal is within this subsection if—
a
it is paid to the person in the temporary period of non-residence, and
b
ignoring this section, it is not chargeable to tax under this Part (or would not be if a DTR claim were made in respect of it).
F34
A “relevant withdrawal” is—
a
any income withdrawal paid to the person from a member's flexi-access drawdown fund in respect of an arrangement relating to the person under a registered pension scheme,
b
any dependants' income withdrawal paid to the person from a dependant's flexi-access drawdown fund in respect of an arrangement relating to the person under a registered pension scheme,
c
any nominees' income withdrawal paid to the person from a nominee's flexi-access drawdown fund in respect of an arrangement relating to the person under a registered pension scheme,
d
any successors' income withdrawal paid to the person from a successor's flexi-access drawdown fund in respect of an arrangement relating to the person under a registered pension scheme,
e
any payment to the person of a short-term annuity purchased using sums or assets out of a member's flexi-access drawdown fund in respect of an arrangement relating to the person under a registered pension scheme,
f
any payment to the person of a dependants' short-term annuity purchased using sums or assets out of a dependant's flexi-access drawdown fund in respect of an arrangement relating to the person under a registered pension scheme,
g
any payment to the person of a nominees' short-term annuity purchased using sums or assets out of a nominee's flexi-access drawdown fund in respect of an arrangement relating to the person under a registered pension scheme,
h
any payment to the person of a successors' short-term annuity purchased using sums or assets out of a successor's flexi-access drawdown fund in respect of an arrangement relating to the person under a registered pension scheme,
i
any uncrystallised funds pension lump sum paid to the person in respect of an arrangement relating to the person under a registered pension scheme, but only so far as section 579A applies in relation to the sum (see section 636A),
j
any income withdrawal, or dependants' income withdrawal, paid before 6 April 2015 to the person under a registered pension scheme in respect of an arrangement relating to the person under the scheme which at the time of the payment was an arrangement to which section 165(3A) or 167(2A) of FA 2004 applied (flexible drawdown arrangements),
k
any payment to the person of a lifetime annuity or dependants' annuity where—
i
the annuity is within paragraph 3(1A) or 17(1ZA), as the case may be, of Schedule 28 to FA 2004,
ii
the terms of the contract under which the annuity is paid are such that there will or could be decreases in the amount of the annuity other than decreases from time to time allowed by regulations under paragraph 3(1)(d) or 17(1)(c), as the case may be, of Schedule 28 to FA 2004 (and any such regulations are to be treated as having effect for this purpose), and
iii
the annuity is purchased using sums or assets held for the purposes of a registered pension scheme, F6...
l
any payment to the person of a scheme pension, or dependants' scheme pension, under a money purchase arrangement under a registered pension scheme where—
i
the person first acquired an actual (rather than a prospective) right to receive the scheme pension on or after 6 April 2015,
ii
when the person first acquired that actual right, fewer than 11 other individuals were entitled to the present payment of a scheme pension, or dependants' scheme pension, under the registered pension scheme, and
iii
the scheme pension is not payable under an annuity contract treated under section 153(8) or (8A) of FA 2004 as having become a registered pension schemeF7, or
m
any payment to the person of a lump sum to which section 579A applies by virtue of section 636A(4ZA).
4A
For the purpose of determining whether the figure specified in subsection (2) is exceeded, any relevant withdrawal paid in a currency other than sterling is to be translated into sterling using the average exchange rate for the year ending with 31 March in the tax year in which the relevant withdrawal is paid.
5
Nothing in any double taxation relief arrangements is to be read as preventing the person from being chargeable to income tax in respect of any relevant withdrawal treated by virtue of this section as accruing in the period of return (or as preventing a charge to that tax from arising as a result).
6
Part 4 of Schedule 45 to FA 2013 (statutory residence test: anti-avoidance) explains—
a
when a person is to be regarded as “temporarily non-resident”, and
b
what “the temporary period of non-residence” and “the period of return” mean.
7
In this section—
“double taxation relief arrangements” means arrangements that have effect under section 2(1) of TIOPA 2010;
“DTR claim” means a claim for relief under section 6 of that Act;
F5“dependants' annuity”, “dependant's flexi-access drawdown fund”, “dependants' scheme pension”, “dependants' short-term annuity”, “lifetime annuity”, “member's flexi-access drawdown fund”, “money purchase arrangement”, “nominee's flexi-access drawdown fund”, “scheme pension”, “short-term annuity”, “successor's flexi-access drawdown fund” and “uncrystallised funds pension lump sum” have the same meaning as in Part 4 of FA 2004 (see section 152 of FA 2004 and paragraphs 2, 3, 6, 8A, 16 to 16C, 17, 20, 22A, 27E and 27K of Schedule 28, and paragraph 4A of Schedule 29, to FA 2004).
Pt. 9: power to amend conferred (17.12.2014) by Taxation of Pensions Act 2014 (c. 30), s. 4(3)