Modifications etc. (not altering text)
C1Pt. 14 Ch. 5 excluded (1.5.1995) by Finance Act 1995 (c. 4), s. 60(5)
M1(1)The maximum amount [F1of contributions in respect of which relief may be given] in any year of assessment by virtue of section 639(1) shall be—
[F2(a)an amount equal to the earnings threshold for that year; or
(b)if greater,] 17.5 per cent. of the individual’s net relevant earnings for that year.
(2)In the case of an individual whose age at the beginning of the year of assessment is within a range specified in the first column of the following table, subsection (1) above shall have effect with the substitution for 17.5 per cent. of the relevant percentage specified in the second column.
| [ F3 36 to 45 | 20 per cent. |
| 46 to 50 | 25 per cent. |
| 51 to 55 | 30 per cent. |
| 56 to 60 | 35 per cent. |
| 61 or more | 40 per cent.] |
(3)[F4Without prejudice to subsection (1) above, where any contributions are paid in a year of assessment by an individual to secure benefits satisfying the conditions in section 637, the maximum amount of those contributions in respect of which relief may be given by virtue of section 639(1)][F5shall be an amount equal to 10 per cent. of the aggregate amount of the relevant pension contributions made in that year by the individual and an employer of his].
[F6(3A)In subsection (3) above “relevant pension contribution” means a contribution paid towards securing benefits falling within paragraph (a), (b) or (c) of section 633(1) under arrangements made under a personal pension scheme on or after 6th April 2001.]
(4)Where personal pension arrangements are made by an employee whose employer makes contributions under the arrangements, the maximum amount [F7of contributions in respect of which relief may be given by virtue of section 639(1)] in any year of assessment shall be reduced by the amount of the employer’s contributions in the year.
(5)Any minimum contributions treated by virtue of section 649(3) as paid by the individual in respect of whom they are paid shall be disregarded for the purposes of this section.
Textual Amendments
F1Words in s. 640(1) substituted (with effect in accordance with Sch. 13 para. 16(8) of the amending Act) by Finance Act 2000 (c. 17), Sch. 13 para. 16(2)(a) (with Sch. 13 Pt. 2)
F2Words in s. 640(1) inserted (with effect in accordance with Sch. 13 para. 16(8) of the amending Act) by Finance Act 2000 (c. 17), Sch. 13 para. 16(2)(b) (with Sch. 13 Pt. 2)
F31989 s.77and Sch.7 para.3for 1989-90and subsequent years. Previously
“51 to 55—20 per cent., 56 to 60—22.5 per cent., 61 or more—27.5 per cent.”.
F4Words in s. 640(3) substituted (with effect in accordance with Sch. 13 para. 16(8) of the amending Act) by Finance Act 2000 (c. 17), Sch. 13 para. 16(4) (with Sch. 13 Pt. 2)
F5Words in s. 640(3) substituted (with effect in accordance with Sch. 13 para. 16(9) of the amending Act) by Finance Act 2000 (c. 17), Sch. 13 para. 16(5) (with Sch. 13 Pt. 2)
F6S. 640(3A) inserted (with effect in accordance with Sch. 13 para. 16(9) of the amending Act) by Finance Act 2000 (c. 17), Sch. 13 para. 16(6) (with Sch. 13 Pt. 2)
F7Words in s. 640(4) substituted (with effect in accordance with Sch. 13 para. 16(8) of the amending Act) by Finance Act 2000 (c. 17), Sch. 13 para. 16(7) (with Sch. 13 Pt. 2)
Marginal Citations
M1Source-1987 (No.2) s.32