SCHEDULES

SCHEDULE 4Pension flexibility: annuities etc

PART 2Income tax on beneficiaries' annuities etc

Minor and consequential amendments

20

In section 573 of ITEPA 2003 (foreign pensions to which other provisions of Part 9 of ITEPA 2003 do not apply) after subsection (2D) insert—

“(2E)

Chapter 17 of this Part provides exemptions for certain annuities (see sections 646D and 646E: certain beneficiaries' annuities purchased out of unused or drawdown funds).

(2F)

See also paragraph 45A of Schedule 36 to FA 2004 (exemption in certain cases for payments on or after 6 April 2015 to beneficiaries under joint-life or similar annuities purchased before 6 April 2006).”

21

In Chapter 10 of Part 9 of ITEPA 2003 (other employment-related annuities) after section 611 insert—

“611AExemptions from sections 609 to 611

(1)

Chapter 17 of this Part provides exemptions for certain annuities (see sections 646B to 646E: certain beneficiaries' annuities purchased out of unused or drawdown funds).

(2)

See also paragraph 45A of Schedule 36 to FA 2004 (exemption in certain cases for payments on or after 6 April 2015 to beneficiaries under joint-life or similar annuities purchased before 6 April 2006).”

22

In section 579A of ITEPA 2003 (section applies to pensions under registered pension schemes, with exceptions) after subsection (2) insert—

“(3)

Chapter 17 of this Part provides exemptions for certain annuities (see sections 646B and 646C: certain beneficiaries' annuities purchased out of unused or drawdown funds).”

23

(1)

For section 579CZA(5)(b) of ITEPA 2003 (tax exemption for dependants' income withdrawal overridden where any paid before 6 April 2015) substitute—

“(b)

before 6 April 2015—

(i)

any payment of dependants' income withdrawal in respect of the deceased member was made to the person from, or

(ii)

any payment in respect of the deceased member was made to the person of a dependants' short-term annuity purchased using sums or assets out of,

the person's dependant's drawdown pension fund in respect of a money purchase arrangement under a registered pension scheme, and”.

(2)

The amendment made by this paragraph has effect in relation to pension paid on or after 6 April 2015.