Income Tax (Earnings and Pensions) Act 2003 section 611A

Exemptions from sections 609 to 611

Section 611A identifies circumstances in which certain annuities that would normally be taxable as employment-related pension income are instead exempt from tax.

• Annuities that fall within the exemptions in sections 646B to 646E or paragraph 45A of Schedule 36 to the Finance Act 2004 are not taxed under sections 609 to 611
• Sections 646B to 646E cover beneficiaries' annuities purchased from unused or drawdown funds under both registered and non-registered pension schemes
• Paragraph 45A of Schedule 36 to the Finance Act 2004 exempts certain payments made on or after 6 April 2015 to beneficiaries under joint-life or similar annuities that were purchased before 6 April 2006
• The effect is to remove what would otherwise be a double taxation charge, ensuring these annuities are dealt with under the specific exemption provisions rather than the general employment-related annuity rules