Part 4Pension schemes etc

Chapter 4Registered pension schemes: tax reliefs and exemptions

Members' contributions

189Relevant UK individual

(1)

For the purposes of this Part an individual is a relevant UK individual for a tax year if—

(a)

the individual has relevant UK earnings chargeable to income tax for that year,

(b)

the individual is resident in the United Kingdom at some time during that year,

(c)

the individual was resident in the United Kingdom both at some time during the five tax years immediately before that year and when the individual became a member of the pension scheme, or

(d)

the individual, or the individual’s spouse F1or civil partner, has for the tax year general earnings from overseas Crown employment subject to UK tax.

(2)

In this Part “relevant UK earnings” means—

(a)

employment income,

(b)

income which is chargeable under F2Part 2 of ITTOIA 2005 and is immediately derived from the carrying on or exercise of a trade, profession or vocation (whether individually or as a partner acting personally in a partnership), F3...

F4(ba)

income which is chargeable under Part 3 of ITTOIA 2005 and is immediately derived from the carrying on of a UK furnished holiday lettings business (whether individually or as a partner acting personally in a partnership), and

F5(c)

income to which subsection (2A) applies.

F6(2A)

This subsection applies to income if—

(a)

it is patent income, and

(b)

the individual, alone or jointly, devised the invention for which the patent in question was granted.

(3)

For the purposes of this section and section 190 relevant UK earnings are to be treated as not being chargeable to income tax if, in accordance with arrangements having effect by virtue of section 788 of ICTA (double taxation agreements), they are not taxable in the United Kingdom.

(4)

“General earnings from overseas Crown employment subject to UK tax” has the meaning given by section 28 of ITEPA 2003.

F7(5)

“UK furnished holiday lettings business” means a UK property business so far as consisting of the commercial letting of furnished holiday accommodation (within the meaning of Chapter 6 of Part 3 of ITTOIA 2005).

(6)

If there is a letting of accommodation only part of which is holiday accommodation, just and reasonable apportionments are to be made for the purpose of determining what is comprised in a UK furnished holiday lettings business.

(7)

“Patent income” means—

(a)

royalties or other sums paid in respect of the use of a patent charged to tax under section 579 of ITTOIA 2005,

(b)

amounts on which tax is payable under section 587 or 593 of ITTOIA 2005, or

(c)

amounts on which tax is payable under—

(i)

section 472(5) of the Capital Allowances Act, or

(ii)

paragraph 100 of Schedule 3 to that Act.