Income Tax (Trading and Other Income) Act 2005 section 83

Deeply discounted securities: saving for pension trustees' losses

Section 83 extends the definition of "trustees" for the purposes of claiming losses on deeply discounted securities, so that it includes pension fund trustees and similar persons who would have been exempt from tax had they made a profit instead of a loss.

• The loss relief rules in section 454(4) and (5) apply not only to trustees in the ordinary sense but also to persons managing various types of exempt pension funds
• The test is whether, if the loss had instead been a profit, that person would have been exempt from income tax in the year the loss arose
• The qualifying funds include approved pension schemes, pre-1980 superannuation funds, parliamentary pension funds, certain overseas pension funds, retirement annuity funds, and approved personal pension schemes
• This ensures that pension fund trustees are not disadvantaged by being unable to claim loss relief simply because their fund's exempt status means they would not normally appear in the tax system