A query from a colleague.

Client gets a superannuation. She is receiving less than she is due because a deduction is being made for overpaid income tax for an earlier period. Pension Service have assessed her as receiving the amount normally due rather than the amount she actually receives after this deduction.

Reg 17(10) of the SPC regs states that when assessing relevant income a disregard should be made for '...any amount payable by way of tax..'.

PS are presumably interpreting this as meaning tax that would be payable normally on current income. Is this what 'payable' means or could the wider interpretation we want to go with apply (i.e. any tax paid, for whatever reason, should be disregarded)?

Grateful for any views, caselaw, anything we have missed etc.

Do you mean previously underpaid tax?

there is an ambiguity in the original post.

if a person overpays income tax the revenue have to give them the money back.

if she underpaid tax, or they say she did, then i'd be getting client to challenge that. if she was on PAYE prior to retirement there shouldn't have been much room for underpayment ....

Er, yes. Underpaid tax from previous years was what I meant.