Income Tax (Earnings and Pensions) Act 2003 section 625

Person liable for tax

Section 625 identifies who is liable to pay the income tax charge that arises under the provisions relating to payments from non-approved pension schemes.

• The section determines which person is chargeable to tax when a payment is made from a non-approved pension scheme.
• The person liable for the tax is the individual who receives or is entitled to the payment from the scheme.
• This provision derives from the former rules in section 599A(5) and (8) of the Income and Corporation Taxes Act 1988.
• The section was subsequently affected by amendments introduced by the Finance Act 2004, which reformed the taxation of pension schemes more broadly.