Commentary on Sections Example 3 Ne = £5,000; Da = 183; De = 183; Smg = 0 Overview
2266.This Chapter imposes the charge on “net taxable pension income” and explains how to calculate “net taxable pension income”. There are four steps in the process:
	Step one - identify the income as pension income;
	Step two - exclude any exempt income;
	Step three - calculate the amount of “taxable pension income”; and
	Step four - calculate “net taxable pension income” by allowing certain deductions from “taxable pension income”.
2267.These steps are carried out for each source of pension income separately; see paragraph 2275.
2268.The Chapter also includes a signpost to the various provisions that identify the person liable for any tax charged.