Section 627 | Exceptions for certain types of income

(1)The rule in section 624(1) does not apply to income which—

(a)arises under a settlement made by one party to a marriage or civil partnership by way of provision for the other—

(i)after the dissolution or annulment of the marriage or civil partnership , or

(ii)while they are separated under an order of a court, or under a separation agreement, or where the separation is likely to be permanent, and

(b)is payable to, or applicable for the benefit of, the other party.

(2)The rule in section 624(1) does not apply to income which consists of—

(a)annual payments made by an individual for commercial reasons in connection with the individual's trade, profession or vocation,

(b)qualifying donations for the purposes of Chapter 2 of Part 8 of ITA 2007 (gift aid) , or

(c)a benefit under a relevant pension scheme.

(3)In subsection (2)(c) “relevant pension scheme” means—

(a)a registered pension scheme,

(b)a pension scheme established by a government outside the United Kingdom for the benefit, or primarily for the benefit, of its employees (or an annuity acquired using funds held for the purposes of such a pension scheme), or

(c)any pension arrangements of any description prescribed by regulations made under section 11(2)(h) of the Welfare Reform and Pensions Act 1999 (c. 30) or Article 12(2)(h) of the Welfare Reform and Pensions (Northern Ireland) Order 1999 (S.I. 1999/3147 (N.I. 11)).

(4)The rule in section 624(1) does not apply in relation to income which—

(a)arises under a settlement, and

(b)originates from any settlor who was not an individual.