Commentary on Sections Example 3 Ne = £5,000; Da = 183; De = 183; Smg = 0 Section 577: United Kingdom social security pensions
2316.This section identifies the six United Kingdom social security benefits taxed as pension income.
2317.ICTA does not impose a specific charge on these social security benefits. They are taxed either by section 617 of ICTA as social security benefits or by paragraph 2 of Schedule E (section 19(1) of ICTA) as a pension.
2318.The charge on industrial death benefit and graduated retirement benefit derives from paragraph 2 of Schedule E (section 19(1) of ICTA). The charge on the other benefits derives from section 617(1) of ICTA.
2319.Subsection (2) describes each of the benefits by reference to the relevant provisions of the National Insurance Act 1965, the Social Security Contributions and Benefits Act 1992 and their Northern Ireland equivalents.
2320.The subsection includes all three categories of state retirement pension. Category A pensions are paid in respect of a person’s own contributions. Category B pensions are paid in respect the person’s spouse’s contributions. Category D pensions are payable to persons over 80 years of age who do not qualify for a Category A or B pension.