161Meaning of “payment” etcU.K.
(1)This section applies for the interpretation of this Chapter.
(2)“Payment” includes a transfer of assets and any other transfer of money’s worth.
(3)Subsection (4) applies to a payment made or benefit provided under or in connection with an investment (including an insurance contract or annuity) acquired using sums or assets held for the purposes of a registered pension scheme.
(4)The payment or benefit is to be treated as made or provided from sums or assets held for the purposes of the pension scheme, even if the pension scheme has been wound up since the investment was acquired.
(5)A payment made by a registered pension scheme to [F1or in respect of] a person who—
(a)is connected with a [F2person who is or has been a] member or sponsoring employer (or was connected with [F3such a person at the date of the person's] death), and
(b)is not a [F2person who is or has been a] member or sponsoring employer,
is to be treated as made in respect of the [F2person who is or has been a] member or sponsoring employer.
(6)Any asset held by a person connected with a [F4person who is or has been a] member or sponsoring employer (or who was connected with [F5such a person at the date of the person's] death) is to be treated as held for the benefit of the [F4person who is or has been a] member or sponsoring employer.
(7)Any increase in the value of an asset held by, or reduction in the liability of, a person connected with a [F6person who is or has been a] member or sponsoring employer (or who was connected with [F7such a person at the date of the person's] death) is to be treated as an increase or reduction for the benefit of the [F6person who is or has been a] member or sponsoring employer.
[F8(8)For the purposes of this section whether a person is connected with another person is determined in accordance with section 993 of ITA 2007.]
Textual Amendments
F1Words in s. 161(5) inserted (6.4.2006) by Finance Act 2005 (c. 7), Sch. 10 paras. 5, 64(1)
F2Words in s. 161(5) inserted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 4(2)(a)
F3Words in s. 161(5) substituted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 4(2)(b)
F4Words in s. 161(6) inserted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 4(3)(a)
F5Words in s. 161(6) substituted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 4(3)(b)
F6Words in s. 161(7) inserted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 4(3)(a)
F7Words in s. 161(7) substituted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 4(3)(b)
F8S. 161(8) substituted (with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 467 (with Sch. 2)
Modifications etc. (not altering text)
C1S. 161 modified (6.4.2006) by The Taxation of Pension Schemes (Transitional Provisions) Order 2006 (S.I. 2006/572), arts. 1(1), 2(1)-(3)
C2S. 161(4) modified (6.4.2006) by The Taxation of Pension Schemes (Transitional Provisions) Order 2006 (S.I. 2006/572), arts. 1(1), 2(4)(5)
Commencement Information
I1Ss. 160-274, 281, Schs. 30-35 in force at 6.4.2006 but any power to make an order or regulations under those provisions may be exercised at any time after Royal Assent, see s. 284