Finance Act 2004

188 Relief for contributions U.K.

(1) An individual who is an active member of a registered pension scheme is entitled to relief under this section in respect of relievable pension contributions paid during a tax year if the individual is a relevant UK individual for that year.

(2) In this Part “relievable pension contributions”, in relation to an individual and a pension scheme, means contributions by or on behalf of the individual under the pension scheme other than contributions to which subsection (3) [F1 or (3A)] applies.

(3) This subsection applies to—

(a) any contributions paid after the individual has reached the age of 75,

[F2 (aa) any contributions which are life assurance premium contributions (see section 195A),]

(b) any contributions paid by an employer of the individual (as to which see sections 196 to 201), F3 ...

F3 (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F4 (3A) This subsection applies to a contribution if the contribution results from the transfer of property or money, or the payment of a sum, towards the pension scheme pursuant to a relevant order in a case where—

(a) section 266A (members' liability in respect of unauthorised member payments) applies, and

(b) relief is claimed under that section in respect of the liability mentioned in subsection (1)(a) of that section.

(3B) In the case of a contribution which is greater than UMP (see section 266A(5)), subsection (3A) does not apply to the contribution so far as it is greater than UMP.

(3C) In subsection (3A) “relevant order” means an order under any of the following—

(a) section 16(1), 19(4) or 21(2)(a) of the Pensions Act 2004 (orders for money etc to be restored to pension schemes), or

(b) Article 12(1), 15(4) or 17(2)(a) of the Pensions (Northern Ireland) Order 2005 (corresponding provision for Northern Ireland).]

(4) For the purposes of this Part a pension credit which increases the rights of the individual under the pension scheme is only to be treated as a contribution on behalf of the individual if it derives from a pension scheme that is not a registered pension scheme.

(5) For the purposes of this Part—

(a) any other transfer of any sum held for the purposes of, or representing accrued rights under, a pension scheme so as to become held for the purposes of, or to represent rights under, another pension scheme, F5 ...

F5 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

is not to be treated as a contribution.

F6 (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7) References in the Income Tax Acts to relief in respect of life assurance premiums do not include relief under this section.

(8) The following sections make further provision about relief under this section—

• section 189 (relevant UK individual),

• section 190 (annual limit for relief),

• sections 191 to 194 (methods of giving relief), and

• section 195 (transfer of certain shares to be treated as payment of contribution).

Textual Amendments

F1 Words in s. 188(2) inserted (with effect in accordance with Sch. 7 para. 16 of the amending Act) by Finance Act 2014 (c. 26), Sch. 7 para. 13(2)

F2 S. 188(3)(aa) inserted (19.7.2007) (with effect in accordance with Sch. 18 paras. 4-7 of the amending Act) by Finance Act 2007 (c. 11), Sch. 18 para. 2

F3 S. 188(3)(c) and word omitted (6.4.2015) by virtue of Finance Act 2013 (c. 29), s. 52(2)(11)

F4 S. 188(3A)-(3C) inserted (with effect in accordance with Sch. 7 para. 16 of the amending Act) by Finance Act 2014 (c. 26), Sch. 7 para. 13(3)

F5 S. 188(5)(b) and preceding word repealed (19.7.2007) (with effect in accordance with Sch. 19 para. 29(3) of the amending Act) by Finance Act 2007 (c. 11), Sch. 19 para. 7, Sch. 27 Pt. 3(1)

F6 S. 188(6) omitted (retrospective to 6.4.2013) by virtue of Finance Act 2013 (c. 29), s. 52(3)(10)

Modifications etc. (not altering text)

C1 Pt. 4 applied (21.7.2009) by Finance Act 2009 (c. 10), Sch. 35 para. 18

Commencement Information

I1 Ss. 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