Section 567 — Income Tax (Earnings and Pensions) Act 2003: Amount charged to tax

Amount charged to tax 567 1 The amount of pension income which is charged to tax under this Part for a particular tax year is as follows.

2 In relation to each pension, annuity or other item of pension income, the amount charged to tax is the “net taxable pension income” for the tax year.

3 The net taxable pension income for a pension, annuity or other item of pension income for a tax year is given by the formula— TPI - DPI where— TPI means the amount of taxable pension income for that pension, annuity or item of pension income for that year (see subsection (4)), and DPI means the total amount of any deductions allowed from the pension, annuity or item of pension income (see subsection (5)).

4 For the purposes of this Act—

a the amount of taxable pension income for a pension, annuity or other item of pension income for a tax year is determined in accordance with Chapters 3 to 15A of this Part (which contain provisions relating to this amount for each type of pension income);

and b in determining the amount of taxable pension income for a pension, annuity or other item of pension income, any exempt income is to be excluded.

5 The deductions allowed from a pension, annuity or other item of pension income are those under— section 567A (deduction to avoid double taxation where Part 7A has applied to the source of the pension income); section 567B (deduction where inheritance tax is paid in respect of pension death benefit); section 617 (10% deduction from an overseas government pension to which section 615 applies); Part 12 (payroll giving).