Charge to tax on repayment of employee's contributions
2(1)Where by way of repayment of, or of interest on, contributions made by an employee, any amount is paid—
(a)in accordance with the rules of an exempt approved scheme, or
(b)in accordance with a statutory scheme to which section 22 of this Act applies,
the administrator of the scheme shall be charged to income tax under Case VI of Schedule D on that amount, and—
(i)the rate of the tax shall be one half of the standard rate of income tax for the year in which the amount is paid,
(ii)the tax shall be charged on the amount paid or, if the rules permit the administrator to deduct the tax before payment, on the amount before deduction of tax,
(iii)the amount so charged to tax shall not be treated as income for any other purpose of the Tax Acts.
(2)This paragraph shall not apply where the employee's employment was carried on outside the United Kingdom.
(3)Sub-paragraph (1)(b) above shall not apply to any payment made before the date appointed under section 22 of this Act.