Commentary on Sections Example 3 Ne = £5,000; Da = 183; De = 183; Smg = 0 Section 591: Taxable pension income
2368.This section deals with the basis of assessment. It identifies the amount of taxable pension income, which feeds into the computation of net taxable pension income in section 567.
2369.The section derives from section 608(4) of ICTA.
2370.ICTA charges section 608(4) annuities under Schedule E. But they are not included in the list, in section 41 of FA 1989, of income that is taxed on the amount accruing in the tax year. The basis of assessment indicated in section 608(4) of ICTA is the annuity paid in the tax year. This section makes that basis of charge clear.