SCHEDULES
SCHEDULE 3Overseas pensions
Part 3Lump sums for UK residents from foreign pension schemes
Employer-financed retirement benefit schemes: ending of foreign-service relief
6
After section 395B insert—
395CMeaning of “foreign service” in section 395B
1
In section 395B “foreign service” means service to which subsection (2), (3), (6) or (8) applies.
2
This subsection applies to service in or after the tax year 2013–14—
a
to the extent that it consists of duties performed outside the United Kingdom in respect of which earnings would not be relevant earnings, or
b
if a deduction equal to the whole amount of the earnings from the employment was or would have been allowable under Chapter 6 of Part 5 (deductions from seafarers' earnings).
3
This subsection applies to service in or after the tax year 2003–04 but before the tax year 2013–14 such that—
a
any earnings from the employment would not be relevant earnings, or
b
a deduction equal to the whole amount of the earnings from the employment was or would have been allowable under Chapter 6 of Part 5 (deductions from seafarers' earnings).
4
In subsection (2) “relevant earnings” means earnings for a tax year that are earnings to which section 15 applies and to which that section would apply even if the employee made a claim under section 809B of ITA 2007 (claim for remittance basis) for that year.
5
In subsection (3) “relevant earnings” means—
a
for service in or after the tax year 2008–09, earnings—
i
which are for a tax year in which the employee is ordinarily UK resident,
ii
to which section 15 applies, and
iii
to which that section would apply even if the employee made a claim under section 809B of ITA 2007 (claim for remittance basis) for that year, and
b
for service before the tax year 2008–09, general earnings to which section 15 or 21 as originally enacted applies.
6
This subsection applies to service before the tax year 2003–04 and after the tax year 1973–74 such that—
a
the emoluments from the employment were not chargeable under Case I of Schedule E, or would not have been so chargeable had there been any, or
b
a deduction equal to the whole amount of the emoluments from the employment was or would have been allowable under a foreign earnings deduction provision.
7
In subsection (6) “foreign earnings deduction provision” means—
a
paragraph 1 of Schedule 2 to FA 1974,
b
paragraph 1 of Schedule 7 to FA 1977, or
c
section 192A or 193(1) of ICTA.
8
This subsection applies to service before the tax year 1974-75 such that tax was not chargeable in respect of the emoluments of the employment—
a
in the tax year 1956–57 or later, under Case I of Schedule E, or
b
in earlier tax years, under Schedule E,
or it would not have been so chargeable had there been any such emoluments.