Income Tax (Earnings and Pensions) Act 2003 section 599

Taxable pension income

Section 599 establishes how to determine the amount of taxable pension income from income withdrawals for a given tax year.

• Tax is charged on the total of all income withdrawals made during the tax year.
• The taxable amount is the sum of all withdrawals taken in the year, not a notional or accrued figure.
• This amount feeds into the computation of net taxable pension income under section 567 of the same Act.
• The basis of assessment is straightforward: it is the actual withdrawals received, assessed on a tax-year basis.