Income Tax (Trading and Other Income) Act 2005 section 132

Income treated as income of settlor: exception for pension income

Section 132 modified the exception for pension income from the settlements anti-avoidance rules in section 627, for the period before 6 April 2006, by replacing the concept of a "relevant pension scheme" with a broader defined term, "approved pension arrangement".

• Before 6 April 2006, the pension income exception in section 627 used the term "approved pension arrangement" instead of "relevant pension scheme".
• An "approved pension arrangement" covered a wide range of pension vehicles including approved schemes, statutory schemes, overseas government schemes, retirement annuity contracts, personal pension schemes, and certain annuities purchased to give effect to rights under those schemes.
• The definition also included any pension arrangements prescribed by regulations under the Welfare Reform and Pensions Act 1999 or its Northern Ireland equivalent.
• The Treasury retained power under Finance Act 2004 to make transitional orders that would substitute the post-6 April 2006 version of section 627 for the pre-6 April 2006 amended version.

---