Finance Act 2004

Valid from 06/04/2006

Income Tax (Earnings and Pensions) Act 2003 (c. 1) U.K.

54 U.K. The Income Tax (Earnings and Pensions) Act 2003 is amended as follows.

55 U.K. In section 23(3) (calculation of “chargeable overseas earnings”), in Step 2, for paragraphs (b) and (c) substitute—

“(b) sections 188 to 194 of FA 2004 (contributions to registered pension schemes), or”.

56 U.K. In section 54 (1) (calculation of deemed employment payment), in Step 5, for “scheme approved under Chapter 1 or 4 of Part 14 of ICTA” substitute “ registered pension scheme ”.

57 U.K. In section 56(8) (application of Income Tax Acts in relation to deemed employment), for “relevant earnings of the worker for the purposes of section 644 of ICTA (relevant earnings for purposes of permissible pension contributions).” substitute “ relevant UK earnings of the worker for the purposes of Part 4 of FA 2004. ”

58 U.K. In section 218(4) (“lower-paid employment”: deductions to be subtracted), for the references to sections 592(7) and 594 of ICTA substitute— “ sections 188 to 194 of FA 2004 (contributions to registered pension schemes), or ”.

59 U.K. In section 315(5) (limited exemption for expenses connected with certain living accommodation), in Step 3, for paragraph (b) substitute—

“(b) sections 188 to 194 of FA 2004 (contributions to registered pension schemes), or”.

60 (1) Section 327 (deductions from earnings: general) is amended as follows. U.K.

(2) In subsection (4), omit the entry relating to section 619 of ICTA.

(3) In subsection (5), for the entries relating to sections 592(7) and 594 (1) of ICTA substitute “ and sections 188 to 194 of FA 2004 (contributions to registered pension schemes). ”

61 U.K. In section 381 (deductions from seafarers' earnings: taking account of other deductions), for paragraphs (c) to (e) substitute—

“(c) section 262 of CAA 2001 (capital allowances to be given effect by treating them as deductions from earnings), and

(d) sections 188 to 194 of FA 2004 (contributions to registered pension schemes).”

62 (1) Section 407 (payments and benefits on termination of employment: exception for payments and benefits under tax-exempt pension schemes) is amended as follows. U.K.

(2) In subsection (2), for paragraph (a) substitute—

“(a) a registered pension scheme,

(aa) a scheme set up by a government outside the United Kingdom for the benefit of employees or primarily for their benefit, or”.

(3) Omit subsection (3).

63 (1) Section 408 (payments and benefits on termination of employment: exception for contributions to tax-exempt pension schemes) is amended as follows. U.K.

(2) In subsection (1), for “tax-exempt pension scheme or approved personal pension arrangements” substitute “ registered pension scheme ”.

(3) Omit subsection (2).

(4) In the heading, for “tax-exempt pension schemes” substitute “ registered pension schemes ”.

64 U.K. In section 563 (former employees: deductions for liabilities), in the definition of “relevant retirement benefit”, for paragraphs (a) and (b) substitute—

“(a) which is received by the former employee under an employer-financed retirement benefits scheme, and

(b) which, under Chapter 2 of Part 6, counts as employment income of the former employee.”

65 (1) Schedule 1 (abbreviations and defined expressions) is amended as follows. U.K.

(2) In Part 1, insert at the end—

“FA 2004

The Finance Act 2004 (c. 12)”.

(3) In Part 2, insert at the appropriate place—

“registered pension scheme

section 832 (1) of ICTA”.