Finance Act 1989

Pensions etc. E+W+S+N.I.

75 Retirement benefits schemes. E+W+S+N.I.

Schedule 6 to this Act (which relates to retirement benefits schemes)shall have effect.

76 Non-approved retirement benefits schemes. E+W+S+N.I.

(1) In computing the amount of the [F1 profits] to be charged under CaseI or Case II of Schedule D, no sum shall be deducted in respect of anyexpenses falling within subsection (2) or (3) below; and no expenses fallingwithin either of those subsections shall be treated for the purposes ofsection 75 of the Taxes Act 1988 (investment companies) as expenses ofmanagement.

(2) [F2 Subject to subsection (6A) below, expenses] fall within this subsection if—

(a) they are expenses of providing benefits pursuant to a relevant retirementbenefits scheme, and

(b) the benefits are not ones in respect of which a person is on receiptchargeable to income tax.

(3) [F2 Subject to subsection (6A) below, expenses] fall within this subsection if—

(a) they are expenses of paying any sum pursuant to a relevant retirementbenefits scheme with a view to the provision of any benefits, and

(b) the sum is not one which when paid is treated as the income of a personby virtue of section 595(1) of the Taxes Act 1988 (sum paid with a view to theprovision of any relevant benefits for an employee).

(4) No sum shall be deducted in respect of any expenses falling withinsubsection (5) or (6) below—

(a) in computing the amount of the [F1 profits] to be charged under CaseI or Case II of Schedule D, or

(b) by virtue of section 75 of the Taxes Act 1988,

unless the sum has actually been expended.

(5) [F2 Subject to subsection (6A) below, expenses] fall within this subsection if—

(a) they are expenses of providing benefits pursuant to a relevant retirementbenefits scheme, and

(b) the benefits are ones in respect of which a person is on receiptchargeable to income tax.

(6) [F2 Subject to subsection (6A) below, expenses] fall within this subsection if—

(a) they are expenses of paying any sum pursuant to a relevant retirementbenefits scheme with a view to the provision of any benefits, and

(b) the sum is one which when paid is treated as the income of a person byvirtue of section 595(1) of the Taxes Act 1988.

[F3 (6A) Expenses to which subsection (6B) or (6C) below applies shall be treated as not falling within any of subsections (2), (3), (5) or (6) above.

(6B) This subsection applies to expenses of paying any sum, or of providing benefits, pursuant to a superannuation fund which satisfies the requirements of section 615(6) of the Taxes Act 1988.

(6C) This subsection applies to expenses of paying any sum, or of providing benefits, pursuant to a retirement benefits scheme which is established outside the United Kingdom and which the Board are satisfied corresponds to such a scheme as is mentioned in paragraphs (a), (b) or (c) of section 596(1) of the Taxes Act 1988, where the expenses are incurred for the benefit of:

(a) employees whose emoluments are foreign emoluments within the meaning of section 192 of the Taxes Act 1988; or

(b) employees who are not resident in the United Kingdom and whose duties are performed wholly outside the United Kingdom (and for this purpose duties performed in the United Kingdom the performance of which is merely incidental to the performance of other duties outside the United Kingdom shall be treated as performed outside the United Kingdom).]

(7) In this section—

• “retirement benefits scheme” has the same meaning as inChapter I of Part XIV of the Taxes Act 1988, and

• references to a relevant retirement benefits scheme are references to aretirement benefits scheme which is not of a description mentioned in section596(1)(a), (b) or (c) of the Taxes Act 1988.

(8) This section has effect in relation to expenses incurred on or after theday on which this Act is passed.

Annotations:

Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.

Amendments (Textual)

F1 Words in s. 76(1)(4)(a) substituted (31.7.1998) by 1998 c. 36, s. 46(3), Sch. 7 para. 3

F2 Words in s. 76(2)(3)(5)(6) substituted (29.4.1996 with effect as mentioned in Sch. 39 para. 2(4) of the amending Act) by 1996 c. 8, s. 201, Sch. 39 Pt. I para. 2(2)

F3 S. 76(6A)-(6C) inserted (29.4.1996 with effect as mentioned in Sch. 39 para. 2(4) of the amending Act) by 1996 c. 8, s. 201, Sch. 39 Pt. I para. 2(3)

Modifications etc. (not altering text)

C1 S. 76 applied (31.7.1998 with effect as mentioned in s. 38(2)(3) of the 1998 c. 36) by 1988 c. 1, s. 21A(2) (as substituted by 1998 c. 36, s. 38(1), Sch. 5 Pt. I paras. 4, 73)

77 Personal pension schemes. E+W+S+N.I.

Schedule 7 to this Act (which relates to personal pension schemes) shallhave effect.