Income Tax (Earnings and Pensions) Act 2003 section 598

Income withdrawals

Section 598 identifies income withdrawals from approved personal pension arrangements as pension income chargeable to income tax.

• Income withdrawals from approved personal pension arrangements are treated as pension income for tax purposes.
• This applies to drawdown payments taken from a personal pension fund rather than purchasing an annuity.
• Such withdrawals are subject to income tax as pension income in the tax year they are received.
• The provision derives from earlier legislation (section 643(5) of ICTA) and was subsequently amended by the Finance Act 2004.