SCHEDULES
SCHEDULE 1Consequential amendments
Part 2Other enactments
Income Tax (Earnings and Pensions) Act 2003 (c. 1)
610
After section 644 insert—
644AHealth 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 husband or wife.
3
Condition B is that the payments are attributable on a just and reasonable basis to the payments or contributions in respect of premiums.