Income Tax (Earnings and Pensions) Act 2003 section 591

Taxable pension income

Section 591 establishes how to determine the amount of taxable pension income from certain annuities, which then feeds into the calculation of net taxable pension income.

• This section identifies the amount that counts as taxable pension income for relevant annuities
• The taxable amount is based on the annuity actually paid during the tax year, not on amounts accruing
• This figure feeds into the broader computation of net taxable pension income under section 567
• The section clarifies the basis of charge that was previously unclear under the old Schedule E rules in ICTA