Finance Act 2014

45 Taxable specific income: effect on pension input amount for non-UK schemes

(1) Schedule 34 to FA 2004 (application of certain charges to non-UK pension schemes) is amended as follows.

(2) In paragraph 10 (pension input amount for cash balance and defined benefits arrangements), for sub-paragraph (2) substitute—

“(2) The appropriate fraction is—

where—

• EI is the total amount of employment income of the individual from any relevant employment or employments for the tax year, excluding any such income which is exempt income (within the meaning of section 8 of ITEPA 2003),

• TE is so much of EI as constitutes taxable earnings from any such employment (within the meaning of section 10(2) of that Act), and

• TSI is so much of EI as constitutes taxable specific income from any such employment (within the meaning of section 10(3) to (5) of that Act).”

(3) In paragraph 11 (pension input amount for other money purchase arrangements), for sub-paragraph (2) substitute—

“(2) The appropriate fraction is—

where—

• EI is the total amount of employment income of the individual from any employment or employments with the employer for the tax year, excluding any such income which is exempt income (within the meaning of section 8 of ITEPA 2003),

• TE is so much of EI as constitutes taxable earnings from any such employment (within the meaning of section 10(2) of that Act), and

• TSI is so much of EI as constitutes taxable specific income from any such employment (within the meaning of section 10(3) to (5) of that Act).”

(4) The amendments made by this section have effect for the tax year 2014-15 and subsequent tax years.