Income Tax (Earnings and Pensions) Act 2003 section 566

Nature of charge to tax on pension income and relevant definitions

Section 566 establishes the income tax charge on pension income and defines the key terms "pension income" and "exempt income" for the purposes of Part 9 of the Act.

• Pension income is charged to income tax, but any exempt income is excluded from the charge
• "Pension income" covers a wide range of income types including UK pensions, foreign pensions, social security pensions, registered pension scheme pensions, various employment-related annuities, and certain other specified categories
• "Exempt income" is pension income that is relieved from income tax under the exemption provisions in Chapters 15A to 18 of Part 9 — such income remains classified as pension income but is not taxed
• The definition of "pension income" applies across the Tax Acts, not just within Part 9, making it a broadly applicable term throughout UK tax legislation