Income Tax (Earnings and Pensions) Act 2003 section 570

"Pension": interpretation

Section 570 defines what counts as a "pension" for the purposes of the tax charge on pensions, ensuring the definition extends beyond contractually obligatory payments.

• The term "pension" is broadly defined and includes pensions paid on a voluntary basis
• Pensions that are capable of being discontinued at any time also fall within the definition
• The effect is that any pension paid by or on behalf of a person in the United Kingdom is taxable, even where the recipient has no contractual right to receive it
• This broad interpretation has been upheld by the courts in the cases of Johnson v Holleran (1988) and Johnson v Farquhar (1991)