Income Tax (Earnings and Pensions) Act 2003 section 414A

Exception for payments and benefits under section 615(3) schemes

Section 414A provides an exemption from the pension income tax rules in this chapter for certain lump sum payments made under overseas superannuation funds approved under section 615(3) of the Income and Corporation Taxes Act (ICTA).

• Lump sum payments or benefits from a section 615(3) scheme are exempt from the pension income tax charges in this chapter.
• A section 615(3) scheme is a superannuation fund to which section 615(3) of ICTA applies — typically an overseas pension fund approved by HMRC.
• This exemption was introduced by statutory instrument in 2014 to give legal effect to a previous extra-statutory concession.
• Only lump sum payments qualify for this exemption; other forms of benefit paid from such schemes may still be subject to the normal pension income rules.