The Income Tax (Purchased Life Annuities) (Amendment) Regulations 1990

Explanatory Note

(This note is not part of the Regulations)

These Regulations amend the Income Tax (Purchased Life Annuities) Regulations 1956 (S.I. 1956/1230) (“the Principal Regulations”), as amended by S.I. 1960/2308, and come into force on 6th April 1990.

The amendments are consequent on the abolition by section 32 Finance Act 1988, with effect for the year 1990—91 and subsequent years of assessment, of the aggregation for income tax purposes of the income of married couples living together. Section 32 provides that section 279 of the Income and Corporation Taxes Act (“the Act”) (which treats the income of a woman living with her husband as his income for income tax purposes) shall not have effect for the year 1990—91 or any subsequent year of assessment.

Regulation 1 provides for citation and commencement and regulation 2 contains definitions.

Regulation 3 amends regulation 19 of the Principal Regulations which provides that, where the payee is a married woman living with her husband, any reference in the Principal Regulations to repaying tax to or charging tax on the payee of an annuity shall, unless an application for separate assessment under what is now section 283(1) of the Act is in force, be read as requiring tax to be repaid to, or charged on, her husband. The amendments limit the application of the regulation to any payment or any part of any payment on account of an annuity which is deemed, by virtue of section 279 of the Act as it has effect for years of assessment before 1990—91, to be the income of her husband or would have been but for being treated as a capital element of an annuity by virtue of section 656(1) of the Act.

Regulation 4 amends regulation 21 of the Principal Regulations to exclude adjustments to a husband’s total income in respect of the years 1990—91 and subsequent years of assessment to take account of repayments of tax to his wife.

Regulation 5 amends the Schedule to the Principal Regulations to remove the obligation upon a married woman who is living with her husband to give particulars of her husband’s name and occupation when making a claim under regulation 4 of the Principal Regulations on or after 6th April 1990.