Pension income Definition

GLOSSARY

Published by a ��Ӱ�� Pensions expert

What does Pension income mean?

The income you get from your pension savings by buying an annuity or unsecured pension. Pension income is taxable.

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Family immigration financial requirement—quick reference checklist

Family immigration financial requirement—quick reference checklist This is a quick reference checklist to assist with calculating whether an applicant will meet the relevant thresholds for eligibility under family immigration routes. In particular, it assists with assessing both the main financial requirement and the adequate maintenance requirement for routes under Appendix FM of the Immigration Rules. Which financial requirement applies? Type of application Financial requirement New application from 11 April 2024 £29,000 Renewal or extension from 11 April 2024 (including fiancés converting to partner) £18,600 (plus applicant child increment*, capped at £29,000) Pending application made before 11 April 2024 £18,600 (plus applicant child increment, no cap) Sponsoring applicant in receipt of a specified benefit or applying on a specified route (eg as a parent) Adequate maintenance based on current income support rates (see below) *The child increment/s, where they apply are as follows: +1 child = +£3,800 for the first child and +£2,400 for each additional child, so eg +1 child = £22,400, +2 children = £24,800, +3 children =...

Charges to income tax—tables

Charges to income tax—tables These tables set out: • the charges to income tax in each of the seven categories of income tax • the person who is liable to pay that charge, and • the legislative provisions that are relevant to that charge Employment income Name of charge Person liable Legislative provisions General earnings Person to whose employment the earnings relate ITEPA 2003, ss 6, 7, 13, Pt 3 Specific employment income Person in relation to whom the income counts as employment income ITEPA 2003, ss 6, 7, 13 Pts 6, 7, 7A Pension income Name of charge Person liable Legislative provisions UK pensions Person receiving or entitled to the pension ITEPA 2003, ss 569–572A Foreign pensions Person receiving or entitled to the pension ITEPA 2003, ss 573–576A UK social security pensions Person receiving or entitled to the pension, benefit or allowance ITEPA 2003, ss 577–579 Pensions under registered pension schemes Person receiving or entitled to the pension under the registered pension scheme ITEPA 2003, ss 579A–579D...

Types of income for income tax purposes

The main types of income are:•employment income•pension income•social security income•trading income•property income•savings and investment income and•miscellaneous incomeHistorically, the application of income tax involved the identification of a source of income followed by establishing that the source fell within one of the Schedules laid out in the Income and Corporation Taxes Act 1988 (ICTA 1988). The act originally divided the classes or kinds of income assessable to income tax under six historic Schedules, A, B, C, D, E and F. In 1996 the Tax Law Rewrite Project was established to rewrite primary direct tax legislation. With the completion of the Tax Law Rewrite Project, the Schedules were entirely done away with, for the purposes of both income tax and corporation tax with the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003), the Income Tax (Trading and other Income) Act 2005 (ITTOIA 2005) and the Income Tax Act 2007 (ITA 2007) setting out the new heads of charges to income tax. The main heads are listed below:Types of income / main...

Trivial commutation

FORTHCOMING DEVELOPMENT: Section 10 of the Finance Act 2022 will increase the normal minimum pension age (NMPA) from 55 to 57 on 6 April 2028 (save for members of the firefighters, police and armed forces public service pension schemes).The Finance Act 2022 will also give members of registered pension schemes a right to take their benefits before age 57, if on or before 4 November 2021 they either had an ‘unqualified right’ to take benefits or were in the process of a substantive transfer to a scheme offering an unqualified right to a protected pension age of less than 57 on or before 4 November 2021. To benefit from this new 2028 protection, the rules of the pension scheme must have included (on 11 February 2021) an unqualified right to take the entitlement to scheme benefits before age 57.For further information, see Practice Note: Increasing the normal minimum pension age (NMPA) to 57—pensions impact.In recognition of the fact that schemes can incur disproportionate costs in providing small pensions under registered...

Discover our 93 Practice Notes on Pension income

Specimen statement of issues for a first appointment—financial remedy application

Specimen statement of issues for a first appointment—financial remedy application In the Family Court sitting at [location] [Case No] Between 1 [insert name] Applicant And 2 [ insert name] Respondent Statement of issues for the First Appointment on [date] Issue Applicant’s position Respondent’s position 1. Clean break The applicant contends that there should be a joint lives maintenance order because [insert concise details] The respondent contends that a clean break will be possible because [insert concise details] 2 Identification of assets to be divided Should [ [[identify asset] inherited by the [applicant OR respondent OR ] OR [identify asset] owned by the applicant OR respondent] prior to the marriage]/ [as appropriate] ]/] be included in the assets to be divided or be ring-fenced? This is a needs case as a result of which ring-fencing is not possibleOr [identify asset] was recently inherited by the applicant from their parents. The property has not been intermingled with other assets. It should be...

Standard order 1.1—financial directions order—longer version

Standard order 1.1—financial directions order—longer version In the Family Court sitting at [Court name] No: [Case number] [ The Matrimonial Causes Act 1973 OR The Civil Partnership Act 2004 OR The Child Support Act 1991 OR Schedule 1 to the Children Act 1989 OR The Inheritance (Provision for Family and Dependants) Act 1975 OR The Matrimonial and Family Proceedings Act 1984 and Schedule 7 to the Civil Partnership Act 2004 OR The Trusts of Land and Appointment of Trustees Act 1996 OR The Married Women’s Property Act 1882 and ss 67, 68 and 74 of the Civil Partnership Act 2004 ] OR [(DELETE AS APPROPRIATE)] The [Marriage OR Civil Partnership OR Relationship OR Family] of [applicant name] and [respondent name] After hearing [name the advocate(s) who appeared] After consideration of the documents lodged by the parties [ [(IN THE CASE OF AN ORDER MADE WITHOUT NOTICE)] After reading the statements and hearing the witnesses specified in para [para number] of the Recitals below] Order made by [name...

Dive into our 4 Precedents related to Pension income

How might the UK tax a lump sum payment from a non-UK pension scheme to a UK resident where some of the pension monies within the non-UK scheme originated within a UK pension scheme? How does section 130A of the Taxation (International and Other Provisions) Act 2010 affect the position?

How might the UK tax a lump sum payment from a non-UK pension scheme to a UK resident where some of the pension monies within the non-UK scheme originated within a UK pension scheme? How does section 130A of the Taxation (International and Other Provisions) Act 2010 affect the position? We have assumed that: • the UK pension scheme from which funds were transferred to the Swiss scheme was a registered pension scheme within the meaning of Finance Act 2004 (FA 2004) • the Swiss scheme was a qualifying recognised overseas pension scheme (QROPS) at the time of the transfer The taxation of cross-border pension benefits is extremely complicated and we would suggest that you seek specialist advice. In the meantime, the following information may be useful. We note that P moved to Switzerland in 2006. Significant changes were made to the way in which UK pensions were taxed from 6 April 2006 (also known as ‘A-day’ within the pensions industry). A key feature of the...

Where a pension is already in payment, would a pension attachment order in relation to that pension cease in the event of death or remarriage and would the pension attachment order be capable of being varied?

Where a pension is already in payment, would a pension attachment order in relation to that pension cease in the event of death or remarriage and would the pension attachment order be capable of being varied? A ‘pension arrangement’ is defined in section 25D(3) of the Matrimonial Causes Act 1973 (MCA 1973) as including an occupational pension scheme, a personal pension scheme, a retirement annuity contract and an annuity and a pension that is in payment. In accordance with MCA 1973, ss 25B–25D, a pension attachment order is an alternative arrangement to a pension sharing order in relation to a pension arrangement and can be used where there is a decree of judicial separation, where a pension sharing order cannot be used, or in cases of divorce or nullity. Pension attachment orders require part, or all, of a party’s pension income to be paid to their ex-spouse. This can be made as a tax-free lump sum, the income payable on taking pension benefits or a lump sum...

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Pensions weekly highlights—10 October 2024

This week's edition of Pensions weekly highlights includes a review of key news stories, as well as dates for your diary and trackers.

Pensions weekly highlights—8 August 2024

This week's edition of Pensions weekly highlights includes a review of key news stories, as well as dates for your diary and trackers.

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