Income Tax (Earnings and Pensions) Act 2003 section 652

Overseas Service Act 1958

Section 652 provides an income tax exemption for pensions paid under the Overseas Service Act 1958 where those pensions relate to public service employment in an overseas territory and a foreign residence condition is met.

• Pensions paid under the Overseas Service Act 1958 and certified by the Secretary of State as attributable to public service in an overseas territory are exempt from income tax, provided a foreign residence condition is satisfied
• Where only part of the pension is certified as relating to overseas public service, only that part benefits from the exemption
• The pension must be paid under specific legislative authority — either under original 1958 Act provisions now operating as schemes under the Overseas Pensions Act 1973, or under new schemes made under the 1973 Act that the Secretary of State certifies as corresponding to the 1958 Act
• Public service in an overseas territory includes employment under that territory's government or local authorities, employment by a statutory public-purpose body in the territory, or holding a public office there