Part 9Pension income

Chapter 17Exemptions: any taxpayer

640Exemption under section 639 where income withheld

(1)

This section applies if—

(a)

an individual is entitled to both of the following—

(i)

a pension or allowance mentioned in section 639 (“pension A”), and

(ii)

any other pension or allowance (“pension B”), and

(b)

the whole or a part of pension A is withheld because of the individual’s entitlement to pension B.

(2)

In such a case, an amount of pension B equal to the withheld amount of pension A is treated for the purposes of section 639 as part of pension A.