Taxation of Pensions Act 2014

63 (1) Section 227 of FA 2004 (pensions under registered pension schemes: annual allowance charge) is amended as follows. U.K.

(2) In subsection (1) (imposition of the charge) for the words from “where” to the end substitute “ where an individual who is a member of one or more registered pension schemes has a chargeable amount for a tax year. ”

(3) After subsection (1) insert—

“(1A) The chargeable amount (if any) is to be determined in accordance with section 227ZA.”

(4) In subsection (4) (basic calculation of charge) for the words in the first sentence after “in respect of” substitute “ the chargeable amount. ”

(5) In subsection (4A) (the appropriate rate) for “excess” (in each place) substitute “ chargeable amount ”.

(6) In subsection (5) (excess is not income) for “That excess” substitute “ The chargeable amount ”.

(7) In subsection (6) (further provision)—

(a) before the entry for section 228 insert—

“sections 227ZA and 227B (chargeable amount),

sections 227C to 227G (supplemental provision for calculations under section 227B),”,

(b) in the entry for section 229, for “229” substitute “ 229(1) ”, and

(c) after that entry insert— “ section 229(2) to (4) (how to arrive at the pension input amount in respect of an arrangement), ”.

(8) The amendments made by this paragraph have effect for the tax year 2015-16 and subsequent tax years.