UK Tax Law, section 615

s615 ICTA 1988

The Income and Corporation Taxes Act 1988, s614 / s615 in regard to schemes setup for a specific purpose. Such schemes have their rules tested and approved or not by the Inland Revenue;

- under ICTA 1988, s614 (5), the income of certain superannuation and provident funds setup for the benefit of overseas employees is exempt to the same extent as if it were the income of a person not domiciled, ordinarily resident or resident in the UK.

- and under ICTA 1988, s615 (3), annuities payable from such funds to persons not resident in the United Kingdom are to be paid without deduction of Income Tax

- and under TCGA 1992, s271(1)(c), such funds are exempt from Capital Gains Tax

- and under ESC, a10 Income Tax is not charged on lump sum relevant benefits receivable from such funds by an employee, his personal representatives, or any dependant of his

- and under FA 1989 s76 (6B) the deductibility of employers’ contributions is considered under the general principles applying to such expenses

The income of such funds that arise in the UK, including untaxed interest [but not interest on securities in respect of which exemption is allowed under ICTA 1988, s47 (old RE3021)] is assessable in the normal way. Extra-statutory concession ESC, B13 will not apply since the trustees will be resident in the United Kingdom.

NI contributions from 6th April 2006

- an employer’s payment to a superannuation fund to which section 615(3) applies and a payment by way of a pension or annuity from such a fund shall be disregarded in the calculation of earnings for Class 1 NICs purposes.

Note: from 16th November 2006, the disregard in the second instance was extended to include a payment by way of a pension from such a fund from which income tax is not deducted.


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