C1C2C3C4C5C6C7C8C9C10C11C12C13C14C15Part 4Pension schemes etc

Annotations:
Modifications etc. (not altering text)
C7

Pt. 4 modified (1.7.2008) (N.I.) (with effect in accordance with reg. 1 of the amending Rule) by The Health and Social Care (Pension Scheme) Regulations (Northern Ireland) 2008 (S.R. 2008/256), regs. 1, 124(1) (with regs. 134, 258)

C9

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

C10

Pt. 4 modified (19.7.2011) by Finance Act 2011 (c. 11), Sch. 18 para. 14(3)

C11

Pt. 4 applied (with modifications) (with application in accordance with Sch. 22 para. 1 of the amending Act) by Finance Act 2013 (c. 29), Sch. 22 para. 1(2)

C12

Pt. 4 modified (17.7.2014) by Finance Act 2014 (c. 26), Sch. 6 para. 1(2)(3)

C13

Pt. 4: power to amend conferred (17.12.2014) by Taxation of Pensions Act 2014 (c. 30), s. 4(3)

C14

Pt. 4 modified (15.9.2016) by Finance Act 2016 (c. 24), Sch. 4 para. 1

C15

Pt. 4 modified (15.9.2016) by Finance Act 2016 (c. 24), Sch. 4 para. 9(2)

C9Chapter 4Registered pension schemes: tax reliefs and exemptions

Members' contributions

I1192C9Relief at source

1

Where an individual is entitled to be given relief in accordance with this section in respect of the payment of a contribution under a pension scheme, the individual or other person by whom the contribution is paid is entitled, on making the payment, to deduct and retain out of it a sum equal to income tax on the contribution F6at the relevant rate .

F31A

For the purposes of this section and sections 192A and 192B “the relevant rate” is—

a

if the Commissioners for Her Majesty’s Revenue and Customs so notify the scheme administrator, the Scottish basic rate for the tax year in which the payment is made;

F12aa

if the Commissioners for Her Majesty’s Revenue and Customs so notify the scheme administrator, the Welsh basic rate for the tax year in which the payment is made; and

b

the basic rate for that tax year in all other cases.

2

If a sum is deducted from the payment of the contribution—

a

the scheme administrator must allow the deduction on receipt of the residue,

b

the individual or other person is acquitted and discharged of so much money as is represented by the deduction as if the sum had actually been paid, and

c

the sum deducted is to be treated as income tax paid by the scheme administrator.

3

When the payment of the contribution is received—

a

the scheme administrator is entitled to recover from the Board of Inland Revenue the amount which is treated as income tax paid by the scheme administrator in relation to the contribution, and

b

any amount so recovered is to be treated for the purposes of the Tax Acts in the same manner as the payment of the contribution.

F24

If (apart from this section) income tax at the higher rate F5F8or the additional rate F9... is chargeable in respect of any part of the individual's total income for the tax year, on the making of a claim the basic rate limit and the higher rate limit for the tax year in the individual's case are increased by the amount of the contribution.

F74A

Where—

a

the individual is a Scottish taxpayer for the tax year,

b

(apart from this section) income tax is chargeable in respect of any part of that individual’s total income for the tax year at a Scottish rate, and

c

that rate is higher than the Scottish basic rate for that year,

on the making of a claim, the Scottish basic rate limit, and any other Scottish rate limit for the tax year in the individual’s case F10that is above the Scottish basic rate limit , are increased by the amount of the contribution.

F114B

Where—

a

the individual is a Welsh taxpayer for the tax year, and

b

(apart from this section) income tax is chargeable in respect of any part of that individual’s total income for the tax year at the Welsh higher rate or Welsh additional rate,

on the making of a claim, the basic rate limit and the higher rate limit for the tax year in the individual’s case, are increased by the amount of the contribution.

F15

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6

Subsections (1) and (2) have effect subject to such conditions as the Board of Inland Revenue may prescribe by regulations.

7

The Board of Inland Revenue may by regulations make provision for carrying subsections (1) to (3) into effect, in particular by making provision—

a

about how a sum is to be recovered under subsection (3)(a) (including the manner in which a claim for the recovery of a sum is to be made),

b

for the giving of such information, in such form, as may be prescribed by or under the regulations,

c

for the inspection of documents by persons authorised by the Board of Inland Revenue, and

d

specifying the consequences of failure to comply with conditions prescribed by virtue of subsection (6).

8

Regulations under this section may, in particular—

a

modify the operation of any provision of the Tax Acts, or

b

provide for the application of any provision of the Tax Acts (with or without modification).

9

Where, after relief is given to an individual in accordance with this section for a tax year, an assessment, alteration of an assessment or other adjustment of the individual’s liability to tax is made, any appropriate consequential adjustments are to be made in relief given to the individual in accordance with this section.

10

Where relief is given to an individual in accordance with this section for a tax year in respect of a contribution, relief is not to be given—

a

in respect of the contribution under any other provision of the Income Tax Acts, or

b

(in the case of a contribution under an annuity contract) in respect of any other premium or consideration for an annuity under the same contract.

F411

Subsection (10) does not apply to prevent the giving of relief in respect of the contribution in accordance with subsection 192A.