Income Tax (Earnings and Pensions) Act 2003 section 574

"Pension": interpretation

Section 574 defines the broad meaning of "pension" for the purposes of the foreign pensions chapter, ensuring that various types of payments from non-UK and overseas pension schemes — as well as certain voluntary pensions — fall within the tax charge.

• The term "pension" includes annuities, relevant lump sums, and income withdrawal payments from relevant non-UK schemes and overseas pension schemes, as well as dependants', nominees' and successors' income withdrawals that would qualify as such if the scheme were a UK registered pension scheme.
• Voluntary or discontinuable pensions are also treated as pensions for tax purposes, provided two conditions are met: the pension is paid to a former employee or office-holder (or their widow, widower, surviving civil partner, child, relative or dependant), and it is paid by or on behalf of the former employer (or their successors).
• Foreign voluntary pensions are treated differently from UK voluntary pensions — a foreign pension paid on a voluntary basis is only taxable if both conditions A and B are satisfied, whereas UK voluntary pensions are subject to additional provisions.
• Key definitions are provided: "office" means any position with an existence independent of its holder; "overseas pension scheme" and "relevant non-UK scheme" take their meanings from Finance Act 2004.