(This archived guidance relates to HMRC discretionary
practice before the 6th April 2006. For current guidance on
Registered Pension Schemes see the Registered Pension Schemes
Manual)
(This text has been withheld because of exemptions in the
Freedom of Information Act 2000)
[PN17.3]
Where a Life Office pays an annuity to the scheme instead of
direct to the pensioner the administrator is responsible for
applying PAYE. The payment by the Life Office is not a pension
within section 597 but it is an annual payment which is strictly
chargeable to basic rate tax under section 349 ICTA 1988. But if
the payment were taxed the scheme administrator could claim
repayment and the whole exercise would serve no purpose. To avoid
unnecessary complication an extra statutory concession which dates
back to 1960 permits Life Offices to pay these annuities gross.
