The Tax Credits (Definition and Calculation of Income) (Amendment) Regulations 2003

Amendment of the principal Regulations

7.—(1) Amend regulation 5 as follows.

(2) For paragraph (1) substitute—

“(1) In these Regulations, except where the context otherwise require, “pension income” means—

(a) any pension to which section 577 or 629 of ITEPA applies;

(b) any pension to which section 569 of ITEPA applies;

(c) any voluntary annual payment to which section 633 of ITEPA applies;

(d) any pension or annuity to which section 580 of ITEPA applies;

(e) any unauthorised personal pension payment to which section 601 of ITEPA applies;

(f) any periodical payment to which section 619 of ITEPA applies;

(g) any annuity paid from a fund to which section 590 of ITEPA applies;

(h) any unauthorised payment from a retirement benefits scheme to which section 583 ITEPA applies;

(i) any annuity to which section 595 of ITEPA applies;

(j) any income withdrawal to which section 598 of ITEPA applies;

(k) any annuity to which section 605 of ITEPA applies;

(l) any annuity to which section 609, 610 or 611 of ITEPA applies; and

(m) any payment to which section 623 of ITEPA applies.”.

(3) In paragraph (2) for “payment mentioned” substitute “payment or benefit mentioned”.

(4) In Table 2—

(a) in the heading for “Pensions and other payments” substitute “Pensions, other payments and benefits”;

(b) in item 1 for “section 315 of the Taxes Act”, in both places where it appears, substitute “section 641 of ITEPA”;

(c) in item 2 for “section 317 of that Taxes Act” substitute “section 638 of ITEPA”;

(d) in item 3—

(i) for “section 318 of the Taxes Act” substitute “section 639 of ITEPA”; and

(ii) for the entry in Column 2 substitute—

“The amount of the pension or allowance.”;

(e) in item 4—

(i) for “section 318(2)” substitute “section 639 of ITEPA”; and

(ii) for the entry in column 2 substitute—

“The amount treated as falling within section 639 of ITEPA by virtue of section 640(2) of that Act.”;

(f) in item 9 for the entry in column 2 substitute—

“The exempt amount of the pension calculated in accordance with section 644(3) of ITEPA.”; and

(g) at the end add the following entries—

“10.   A lump sum on which no liability to income tax arises by virtue of section 637 of ITEPA.	The amount of the lump sum.
11.   Coal or smokeless fuel provided as mentioned in section 646(1) of ITEPA, or an allowance in lieu of such provision.	The amount on which no liability to income tax arises by virtue of that section.”.

(5) At the end of the regulation add—

“(3) From the amount of pension income, calculated in accordance with the preceding provisions of this regulation, there shall be deducted any amount deductible for income tax purposes in computing pension income (as defined in ITEPA) under section 713 of that Act.”.