Income Tax (Earnings and Pensions) Act 2003 section 584

Taxable pension income

Section 584 establishes how to determine the amount of taxable pension income arising from unauthorised payments made by employer-financed retirement benefit schemes, which then feeds into the overall calculation of net taxable pension income.

• This section applies specifically to unauthorised payments from employer-financed retirement benefit schemes.
• It identifies the amount that counts as taxable pension income for the recipient of such payments.
• The taxable amount determined under this section is used in the broader computation of net taxable pension income under section 567 of the same Act.
• The rules derive from earlier legislation, specifically sections 600(2) and (4) of the Income and Corporation Taxes Act 1988, and were amended by the Finance Act 2004.