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Finance Act 2012

Abolition of income tax relief relating to certain payments made for benefit of family members etc

51.Paragraph 32(1) removes entitlement to this relief by omitting section 459 Chapter 6 of Part 8 of the Income Tax Act 2007 (ITA).

52.Paragraph 32(2) amends and removes several other supporting provisions in ITA and ICTA, as a direct consequence of removing the relief.

53.Paragraph 32(3) to (5) amend section 609 of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA) which determines the amount of annuity payments that are treated as pension income, and the person liable to tax on this income. The amendment ensures that section 609 of ITEPA continues to apply to the type of annuity for which relief was available under section 459 of ITA, despite the removal of the relief.

54.Paragraph 32(4) provides for section 609 of ITEPA to continue to apply to annuities for the benefit of dependants where all or part of sums paid to acquire these annuities satisfied the conditions for relief in tax years up to and including 2012-13.

55.Paragraph 32(5) imports the parts of section 459 of ITA that identify the type of annuities to which section 609 of ITEPA applies. These new parts of section 609 of ITEPA will apply to sums paid in the tax year 2013-14 or later years, in order to acquire annuities for the benefit of dependants.

56.Paragraph 32(6) provides that the various amendments described above will have effect for 2013-14 and subsequent years, so the last year for which the relief is available will be 2012-13.

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