Taxes Consolidation Act 1997 Schedule 23 paragraph 8

Prevention of double taxation

Paragraph 8 of Schedule 23 prevents a double charge to tax where a payment from an approved retirement benefit scheme is already taxable under Part 2 of the Schedule.

• Where a payment from a retirement benefit scheme is chargeable to tax under Part 2 of Schedule 23, it cannot also be charged to tax under section 780 or section 781.
• Section 780 charges to tax repayments of an employee's own contributions to the scheme, and section 781 charges to tax lump sums received on commutation of a pension.
• The purpose of the rule is to ensure that the same payment is not taxed twice under different provisions.
• Part 2 of Schedule 23 (paragraphs 6 to 9) imposes a Schedule E charge on payments made contrary to the conditions of approval or made after approval has ceased.