Income Tax (Earnings and Pensions) Act 2003 section 612

Taxable pension income: UK annuities

Section 612 sets out how to determine the taxable pension income for certain employment-related annuities that arise from a UK source.

• This section applies to annuities covered by sections 609, 610 or 611 — that is, annuities for the benefit of dependants and annuities paid in recognition of another person's services
• The annuity must arise from a source within the United Kingdom for this section to apply
• The taxable pension income for any tax year is simply the full amount of the annuity arising in that year
• The resulting figure feeds into the broader calculation of net taxable pension income under section 567