Part 5Miscellaneous income

Chapter 5Settlements: amounts treated as income of settlor

Income treated as income of settlor: retained interests

627Exceptions for certain types of income

1

The rule in section 624(1) does not apply to income which—

a

arises under a settlement made by one party to a marriage F1or civil partnership by way of provision for the other—

i

after the dissolution or annulment of the marriage F1or civil partnership , or

ii

while they are separated under an order of a court, or under a separation agreement, or where the separation is likely to be permanent, and

b

is payable to, or applicable for the benefit of, the other party.

2

The rule in section 624(1) does not apply to income which consists of—

a

annual payments made by an individual for commercial reasons in connection with the individual's trade, profession or vocation,

b

qualifying donations for the purposes of section 25 of FA 1990 (donations to charity by individuals), or

c

a benefit under a relevant pension scheme.

3

In subsection (2)(c) “relevant pension scheme” means—

a

a registered pension scheme,

b

a pension scheme established by a government outside the United Kingdom for the benefit, or primarily for the benefit, of its employees (or an annuity acquired using funds held for the purposes of such a pension scheme), or

c

any pension arrangements of any description prescribed by regulations made under section 11(2)(h) of the Welfare Reform and Pensions Act 1999 (c. 30) or Article 12(2)(h) of the Welfare Reform and Pensions (Northern Ireland) Order 1999 (S.I. 1999/3147 (N.I. 11)).