2457.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.
2458.It derives from section 41 of FA 1989. Section 41 charges pensions on the amount accruing in the tax year. This means that the charge is calculated on the amount accruing from day to day without regard to when the income is actually paid.
Commentary on Sections Example 3 Ne = £5,000; Da = 183; De = 183; Smg = 0 Section 616: Taxable pension income