Income Tax (Earnings and Pensions) Act 2003 section 578

Taxable pension income

Section 578 sets out how taxable pension income from UK social security pensions, benefits and allowances is measured for a given tax year.

• Taxable pension income is the full amount that accrues during the tax year
• The charge applies on a day-to-day accruals basis, not on a cash-received basis
• The timing of actual payment is irrelevant to the tax calculation
• The resulting figure feeds into the computation of net taxable pension income under section 567