Income Tax (Earnings and Pensions) Act 2003 section 629

Pre-1973 pensions paid under the Overseas Pensions Act 1973

Section 629 deals with the tax treatment of certain pensions that were originally paid by overseas Commonwealth governments but were taken over by the UK government under the Overseas Pensions Act 1973.

• The section applies to pre-1973 pensions now paid under section 1 of the Overseas Pensions Act 1973, whether or not paid from a fund established under a scheme made under that section
• The pension must be paid to the original pensioner, or to the widow or widower of the original pensioner
• Any part of the pension paid because the Pensions (Increase) Act 1971 applies is excluded from this section and is instead taxed as a UK pension under section 569
• An exemption under Chapter 18 may apply where the pension is paid to a person who is not resident in the United Kingdom