Section 12 Dispositions allowable for income tax or conferring benefits under pension scheme.F11

A disposition made by any person is not a transfer of value if it is allowable in computing that person’s profits or gains for the purposes of income tax or corporation tax or would be so allowable if those profits or gains were sufficient and fell to be so computed.

Without prejudice to subsection (1) above, a disposition made by any person is not a transfer of value if F1it is a contribution under a registered pension scheme F2, a qualifying non-UK pension scheme or a section 615(3) scheme in respect of an employee of the person making the disposition.

Where a person who is a member of a registered pension scheme, a qualifying non-UK pension scheme or a section 615(3) scheme omits to exercise pension rights under the pension scheme, section 3(3) above does not apply in relation to the omission.

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For the purposes of this section—

In this section—

• “entitled”, in relation to a pension or lump sum, shall be construed in accordance with section 165(3) or F7167(1A), or section 166(2), of the Finance Act 2004;

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• “pension” has the same meaning as in F9Part 4 of that Act (see section 165(2) of that Act);

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Where a disposition satisfies the conditions of the preceding provisions of this section to a limited extent only, so much of it as satisfies them and so much of it as does not satisfy them shall be treated as separate dispositions.