Income Tax (Earnings and Pensions) Act 2003 section 602

Taxable pension income

Section 602 deals with how the taxable amount of pension income is determined and feeds into the overall calculation of net taxable pension income under section 567.

• This section establishes the basis of assessment for pension income that falls within its scope.
• It identifies the specific amount that constitutes taxable pension income for a given tax year.
• The taxable pension income figure determined here is used in the broader computation of net taxable pension income under section 567.
• The provision originates from the former section 647(3) of the Income and Corporation Taxes Act 1988 and was subsequently amended by the Finance Act 2004.