Commentary on Sections Example 3 Ne = £5,000; Da = 183; De = 183; Smg = 0 Section 567: Amount charged to tax
2273.This section imposes the charge to tax and explains how the charge is calculated. It is new.
2274.Subsection (1) imposes the charge.
2275.Subsection (2) provides that the charge is imposed on “net taxable pension income”. Each pension, annuity or other item of pension income is treated separately in the calculation of net taxable pension income. So, if a taxpayer receives two occupational pensions, net taxable pension income is calculated for the income from each pension.
2276.Subsection (4)(a) explains that the amount of “taxable pension income” is given in the relevant section in Chapters 3 to 15. Each of those Chapters has a section entitled “taxable pension income”. Those sections give the rules for calculating the amount of the “taxable pension income” for the income dealt with in the Chapter.
2277.Subsection (4)(b) makes it clear that “taxable pension income” does not include any exempt income. The definition of “exempt income” is in section 566(3).