Income Tax (Earnings and Pensions) Act 2003 section 653

Overseas Service Pensions Fund

Section 653 provides an income tax exemption for pensions paid from the Overseas Service Pensions Fund, provided the recipient meets the foreign residence condition.

• Pensions paid from the Overseas Service Pensions Fund are exempt from income tax where the foreign residence condition is satisfied
• The Overseas Service Pensions Fund is the fund established under section 7(1) of the Overseas Aid Act 1966
• The term "pension" is defined broadly to include not only standard pension payments but also any sum payable in respect of ill-health
• The exemption applies to annuities, lump sums, gratuities and similar benefits as well as regular pension payments