Section 652 — Income Tax (Earnings and Pensions) Act 2003: Overseas Service Act 1958

Overseas Service Act 1958 652 1 No liability to income tax arises on a pension—

a which is paid under the authority of the Overseas Service Act 1958 (c. 14),

and b which the Secretary of State certifies to be attributable to the employment of a person in the public services of an overseas territory, if the foreign residence condition is met.

2 If the Secretary of State certifies that only part of a pension paid under the authority of the 1958 Act is attributable to the employment of a person in the public services of an overseas territory, subsection (1) applies only to that part of the pension.

3 For the purposes of subsections (1) and (2) a pension is paid under the authority of the 1958 Act if condition A or B is met.

4 Condition A is that the pension is paid under either of the following—

a an order made under section 2 of the 1958 Act, or b section 4(2) of the 1958 Act, as it has effect (by reason of section 2(3) of OPA 1973) as a scheme under section 2 of OPA 1973.

5 Condition B is that the pension is paid under a scheme which the Secretary of State—

a has made under section 2(1) of OPA 1973, and b has certified to correspond to—

i an order made under section 2 of the 1958 Act, or ii section 4(2) of the 1958 Act.

6 For the purposes of this section, a person is taken to be employed in the public service of an overseas territory at any time when—

a the person is employed in any capacity under the government of that territory, or under any municipal or other local authority in it, b the person is employed in circumstances not falling within paragraph (a), by a body corporate established for any public purpose in that territory by an enactment of a legislature empowered to make laws for that territory, or c the person is the holder of a public office in that territory in circumstances not falling within paragraph (a) or (b).

7 In subsection (6) references to the government of an overseas territory include references to—

a a government constituted for two or more overseas territories, and b any authority established for the purpose of providing or administering services which are common to, or relate to matters of common interest to, two or more such territories.

8 In this section— “ the 1958 Act ” means the Overseas Service Act 1958 (c. 14); “ certified ” means certified for the purposes of ICTA 1970, ICTA or this Act.