C2C1C3C4C5Part 9Pension income

Annotations:
Modifications etc. (not altering text)
C2

Pt. 9: power to amend conferred (17.12.2014) by Taxation of Pensions Act 2014 (c. 30), s. 4(3)

C1

Pt. 9 excluded by 2004 c. 12, Sch. 36 para. 45A(1) (as inserted (26.3.2015) by Finance Act 2015 (c. 11), Sch. 4 para. 19)

Chapter 2Tax on pension income

567AF1Cases in which Part 7A has applied to source of pension income

1

This section applies if—

a

for a tax year there is an amount (“amount TPI”) of taxable pension income for a pension, annuity or other item of pension income,

b

the pension, annuity or other item of pension income accrues or arises out of rights (“the relevant rights”) which represent, or have arisen or derived (directly or indirectly) from, a sum of money or asset which was the subject of a relevant step within the meaning of Part 7A, and

c

Chapter 2 of that Part applied by reason of the relevant step.

2

A deduction is allowed from amount TPI.

3

The amount of the deduction allowed is the amount (“amount EI”) which counted as employment income of A under Chapter 2 of Part 7A in relation to the relevant step (see section 554Z2(1)).

4

If amount EI exceeds amount TPI, the excess is to be carried forward to future tax years to be deducted under this section (when applicable) until all of amount EI has been deducted.

5

Subsection (6) applies if it is determined on a just and reasonable basis that the relevant rights represent, or have arisen or derived from, only part of the sum of money or asset which was the subject of the relevant step.

6

In subsection (3) the reference to the amount which counted as employment income is to be read as a reference to the corresponding proportion of that amount.