SCHEDULES
SCHEDULE 1Consequential amendments
Part 2Other enactments
Income Tax (Earnings and Pensions) Act 2003 (c. 1)
607
1
Amend section 613 (taxable pension income: foreign annuities) as follows.
2
In subsection (2) for the words “the amount” onwards substitute “
the full amount of the annuity arising in the tax year, but subject to subsections (3) and (4).
”
3
For subsections (3) and (4) substitute—
3
The full amount of the annuity arising in the tax year is to be calculated on the basis that the annuity is 90% of its actual amount, unless as a result of subsection (4) the annuity is charged in accordance with section 832 of ITTOIA 2005 (relevant foreign income charged on the remittance basis).
4
The annuity is treated as relevant foreign income for the purposes of Chapters 2 and 3 of Part 8 of that Act (relevant foreign income: remittance basis and deductions and reliefs).
5
But if the annuity arises in the Republic of Ireland, section 839 of that Act (annual payments payable out of relevant foreign income) applies with the omission of condition B and subsection (5)(a).
6
See also Chapter 4 of that Part (unremittable income).