Section 635 Taxable pension income: foreign voluntary annual payments

United Kingdom

(1)

The taxable pension income for payments to which section 633 applies is determined in accordance with this section if the payments are made by or on behalf of a person who is outside the United Kingdom.

(2)

The taxable pension income for a tax year is F1the full amount of the pension income arising in the tax year, but subject to F2subsection (4) .

F3(3)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4)

F4The full amount of the pension income arising in the tax year is treated as relevant foreign income for the purposes of Chapters 2 and 3 of Part 8 of F5ITTOIA 2005 (relevant foreign income: remittance basis and deductions and reliefs).

(5)

But if that pension income arises in the Republic of Ireland, section 839 of that Act (annual payments payable out of relevant foreign income) applies with the omission of F6conditions B1 and B2 (and the reference to them in subsection (1)) and subsection (5)(a).

(6)

See also Chapter 4 of that Part (unremittable income).

Annotations

Textual amendments

F1: Words in s. 635(2) substituted (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 609(2) (with Sch. 2)
F2: Word in s. 635(2) substituted (with effect in accordance with Sch. 3 para. 2(6) of the amending Act) by Finance Act 2017 (c. 10), Sch. 3 para. 2(4)(c)(i)
F3: S. 635(3)-(6) substituted for s. 635(3) (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 609(3) (with Sch. 2)
F4: Words in s. 635(4) substituted (with effect in accordance with Sch. 3 para. 2(6) of the amending Act) by Finance Act 2017 (c. 10), Sch. 3 para. 2(4)(c)(ii)
F5: Words in s. 635(4) substituted (with effect in accordance with Sch. 3 para. 2(6) of the amending Act) by Finance Act 2017 (c. 10), Sch. 3 para. 2(4)(c)(iii)
F6: Words in s. 635(5) substituted (with effect in accordance with Sch. 3 para. 2(6) of the amending Act) by Finance Act 2017 (c. 10), Sch. 3 para. 2(5)

Notes on Part 9

Modifications

C1: Pt. 9: power to amend conferred (17.12.2014) by Taxation of Pensions Act 2014 (c. 30), s. 4(3)
C2: Pt. 9 excluded by 2004 c. 12, Sch. 36 para. 45A(1) (as inserted (26.3.2015) by Finance Act 2015 (c. 11), Sch. 4 para. 19)
C3: Pt. 9 modified (6.4.2023) by The Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) Regulations 2023 (S.I. 2023/113), regs. 1(2), 23(2), 24(2), 26(2), 28(2) (with reg. 1(3))
C4: Pt. 9 modified (14.9.2023) by The Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) (No. 2) Regulations 2023 (S.I. 2023/912), regs. 1(2), 9(2), 11(2), 16(2) (with reg. 1(3))
C5: Pt. 9 modified (31.10.2023) by The Registered Pension Schemes (Authorised Member Payments) Regulations 2023 (S.I. 2023/1012), regs. 1, 4
C6: Pt. 9 modified (for the tax year 2024-25 and subsequent tax years) by S.I. 2009/1171, reg. 5ZA (as inserted by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 3) Regulations 2024 (S.I. 2024/1167), regs. 1(2)(3), 5(3) (with reg. 6))
C7: Pt. 9 modified (13.2.2025 with effect in relation to the tax year 2024-25 and subsequent tax years) by The MPs’, Senedd and Assembly Pension Schemes (Tax) Regulations 2025 (S.I. 2025/52), regs. 1(2)(3), 4, 6, 7
C8: Pt. 9 modified (14.7.2026 for the tax year 2014-15 and subsequent tax years) by The Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) Regulations 2026 (S.I. 2026/673), regs. 1(2)(5), 12