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HMRC internal manual

Employment Income Manual

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HM Revenue & Customs
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The taxation of pension income: Pensions taken as flexible drawdown: temporary non-residence: meaning of terms

“Active member” is defined by section 150(2) FA 2004.

“Cash balance arrangement” is defined by section 152(3) and (5) FA 2004

“Defined benefits arrangement” is defined by section 152(6) and (7) FA 2004

“Dependants’ drawdown pension” is defined by paragraph 18 of Schedule 28 to FA 2004.

“Dependants’ drawdown pension fund” is defined by paragraph 22 of Schedule 28 to FA 2004.

“Drawdown pension” is defined by paragraph 4 of Schedule 28 to FA 2004.

“Drawdown pension fund” is defined by paragraph 8 of Schedule 28 to FA 2004.

“Double taxation relief arrangements” means arrangements that have effect under section 2(1) of T(IOP)A 2010;

“Flexible drawdown” means arrangements to which sections 165(3A) or 167(2A) of FA 2004 apply.

“Member’s relevant transfer fund” has the same meaning as in paragraph 4(2) of Schedule 34 to FA 2004

“Member’s UK tax-relieved fund” has the same meaning as in paragraph 3(2) of Schedule 34 to FA 2004

“Money purchase arrangement” is defined by section 152(2) and (4) FA 2004.

“Overseas pension scheme” has the same meaning as in section 150(7) FA 2004

“Registered pension scheme”. A pension scheme is a registered pension scheme at any time when, either through having applied for registration and been registered by HMRC or through acquiring registered status by virtue of being an approved pension scheme on 5 April 2006, it is registered under Chapter 2 of Part 4 of FA 2004.

“Relevant contribution” is defined in paragraphs 14D and 24F of Schedule 28 to FA 2004 and means a contribution which is either a relievable pension contribution or a contribution paid by the member’s employer.

“Relevant non-UK income withdrawal”, in relation to a relevant non-UK scheme, means an amount paid under the scheme which, if the scheme were a registered pension scheme, would be income withdrawal or dependants’ income withdrawal (within the meaning of paragraphs 7 and 21 of Schedule 28 to FA 2004).

“Relevant non-UK scheme” is a scheme falling within paragraph 1(5) of Schedule 34 to FA 2004

“Relievable pension contributions” are defined by s.188(2) FA 2004.

“Relieved member” has the same meaning as in paragraph 1(7) of Schedule 34 to FA 2004.

“Resident” and “ordinarily resident”, as referred to in sections 576A and 579CA ITEPA 2003, have the same meaning as in the rest of the Income Tax Acts. For guidance on the meaning of those terms, see publication HMRC6 for years to 2011-12 and RDR1 for years 2012-13.

“Transfer member” has the same meaning as paragraphs 1(7) and (8) of Schedule 34 to FA2004.

“Treaty non-resident” is a term used in both sections 576A and 579CA ITEPA 2003. Sub-section (3)(b) of both sections provides that a person is Treaty non-resident at any time if, at that time, he falls to be regarded as resident in a territory outside the UK for the purposes of double taxation relief arrangements having effect at that time.

“Year of departure” and “year of return” are each defined in sections 276A(2) and 279CA(2) ITEPA 2003.

“Year of non-residence” as defined in sections 576A(8) and 579CA(5) of ITEPA 2003 means any tax year which falls between the year of departure and the year of return.