Income Tax (Earnings and Pensions) Act 2003 section 586

Meaning of "retirement benefits scheme" etc.

Section 586 defines key terms used in the taxation of retirement benefits, including what constitutes a "retirement benefits scheme", how approval status is determined, and how third-party arrangements and employer references should be interpreted.

• A "retirement benefits scheme" is a scheme providing relevant benefits, but excludes national schemes and approved personal pension schemes.
• "Approved" refers to schemes that have been approved under the legislation governing retirement benefits schemes (originally introduced in the Finance Act 1970, now consolidated in ICTA).
• Where a pension or annuity is paid through a third party rather than directly by the scheme, it is still caught by the tax charge on retirement scheme payments.
• The section also clarifies the meaning of "employer" in the context of retirement benefits schemes.