Overview
2462.This Chapter identifies periodical payments granted out of the House of Commons Members’ Fund as pension income.
Section 619: The House of Commons Members’ Fund
2463.This section derives from section 613(3) of ICTA.
2464.The section will apply to a very small number of taxpayers, possibly no more than 100. The House of Commons Members’ Fund was established in 1939. It was superseded by the Parliamentary Contributory Pension Fund in 1964. The 1939 fund continues to make grants to former Members and their dependants. These grants are described as “periodical payments”.
2465.Paragraph (a) applies to grants made to former Members and their dependants who qualify for grants under the House of Commons Members’ Fund Act 1939.
2466.Paragraphs (b) and (c) apply to grants made to former Members and their dependants who receive grants under section 4 of the House of Commons Members Fund Act 1948 because they do not qualify under the 1939 Act. These payments are made from sums appropriated from the fund and the income earned on those appropriated amounts.
2467.Section 613(1) and (2) of ICTA deal with Members’ contributions to the fund. Because Members no longer pay these contributions it is not necessary for this Act to rewrite section 613(1) and (2).
Section 621: Taxable pension income
2468.This section deals with the basis of assessment. It identifies the amount of taxable pension income, which feeds into the computation of net taxable pension income in section 567.
2469.The section derives from section 613(3) of ICTA and makes it clear that tax is charged on the full amount paid in the tax year.
Section 622: Person liable for tax
2470.This section identifies the person chargeable. It is new.
2471.In ICTA this income is taxed under Schedule E. ICTA does not identify the person chargeable. This section identifies the person liable for tax on payments within section 619 as the person receiving or entitled to the income. See Change 135 in Annex 1.
