C2C1C3C4C5Part 9Pension income

Annotations:

Chapter 17Exemptions: any taxpayer

644AF1Health and employment insurance payments

1

No liability to income tax arises in respect of a pension or annuity payment if or to the extent that—

a

were the payment an annual payment falling within Chapter 7 of Part 5 of ITTOIA 2005, it would be exempt from income tax under section 735 of that Act (health and employment insurance payments), and

b

it meets conditions A and B.

2

Condition A is that the payments are made—

a

to a person (“the pensioner”) who made payments or contributions in respect of premiums under an insurance policy which another person took out wholly or partly for the pensioner's benefit, or

b

to the pensioner's F2spouse or civil partner .

3

Condition B is that the payments are attributable on a just and reasonable basis to the payments or contributions in respect of premiums.