o6. Pension income

- Disability pension paid due to injury/illness at work other than from registered pension scheme

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Exemption

- ITEPA s.644.

- See EIM75080.

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Does not apply to pension paid under registered pension scheme

 - "The exemption does not apply to any pension or annuity paid under a registered pension scheme. Any pension or annuity paid under such a scheme on ill-health grounds will be taxable. This includes any increase given to the pension paid from the scheme because the member is retiring due to ill-health. However, if the employee receives extra pension in consequence of their ill-health being work-related, and it is not paid from a registered pension scheme, this extra pension may be exempt." (EIM75080).

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Legislation: ITEPA 2003 s.644;

Cases: 

HMRC manuals: EIM75080 - The taxation of pension income: pension payments exempt from tax; 

Commentary: 

See also:

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