Income Tax (Earnings and Pensions) Act 2003 section 554S

Exclusions: pension income chargeable under Part 9 etc.

Section 554S excludes certain pension-related payments from the disguised remuneration rules in Part 7A where that pension income is already taxed (or exempt) under the pension income rules in Part 9 of the Act.

• Where a relevant step involves providing pension income that is already chargeable to income tax under Part 9, the disguised remuneration charge in Chapter 2 of Part 7A does not apply
• The exclusion also covers pension income that is classified as exempt income within the meaning of Part 9
• This ensures that pension income is not taxed twice — once under the pension rules and again under the disguised remuneration rules
• Further exclusions relating to retirement benefits are set out in sections 554T to 554X, and these must be considered and applied sequentially in the order they appear