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Finance Act 2004

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Changes over time for: Section 236A

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[F1236APost-entitlement enhancementsU.K.

(1)This section applies in relation to the arrangement if, during the pension input period (“the affected pension input period”), the individual enters into a scheme for the making of an avoidance-inspired post-entitlement enhancement.

(2)A “post-entitlement enhancement” is an increase in the annual rate of a scheme pension under the arrangement, at a time after the member has become entitled to the scheme pension.

(3)A post-entitlement enhancement is “avoidance-inspired” if the main purpose, or one of the main purposes, of the individual in entering into the scheme was to avoid or reduce a liability to the annual allowance charge.

(4)This Part has effect in relation to the arrangement and the individual, as respects the affected pension input period and all subsequent pension input periods, as if—

(a)section 234 were modified in accordance with subsection (5), and

(b)sections 235 [F2, 236 and 236ZA] were omitted.

(5)The modifications of section 234 are that—

(a)in subsection (4), for the words after “the arrangement is” there are substituted “ such amount as, applying normal actuarial practice, is the expected cost of giving effect to the individual's rights under the arrangement at the end of the immediately preceding pension input period (or is nil if the pension input period is the first pension input period of the arrangement). ”,

(b)in subsection (5), for the words after “the arrangement is” there are substituted “ such amount as, applying normal actuarial practice, is the expected cost of giving effect to the individual's rights under the arrangement at the end of the pension input period. ”, and

(c)subsection (6) is omitted.

(6)In this section “scheme” includes any arrangements, agreement, understanding, transaction or series of transactions (whether or not legally enforceable).]

Textual Amendments

F1S. 236A inserted (with effect in accordance with Sch. 17 Pt. 2 of the amending Act) by Finance Act 2011 (c. 11), Sch. 17 para. 13

F2Words in s. 236A(4)(b) substituted (6.4.2024 with effect for the tax year 2023-24 and subsequent tax years) by The Finance Act 2004 (Registered Pension Schemes and Annual Allowance Charge) Order 2024 (S.I. 2024/357), arts. 1(1), 2(3) (with art. 1(2))

Modifications etc. (not altering text)

C1Pt. 4 modified (13.2.2025 with effect in relation to the tax year 2024-25 and subsequent tax years) by The MPs’, Senedd and Assembly Pension Schemes (Tax) Regulations 2025 (S.I. 2025/52), regs. 1(2)(3), 6

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