C1C4C5C3C6Part 4Pension schemes etc

Annotations:
Modifications etc. (not altering text)

C4C5C3C6Chapter 5Registered pension schemes: tax charges

Annual allowance charge

I1C4C7C5C3C6227C4C5C3C6Annual allowance charge

1

A charge to income tax, to be known as the annual allowance charge, arises where—

a

the total pension input amount for a tax year in the case of an individual who is a member of one or more registered pension schemes, exceeds

b

the amount of the annual allowance for the tax year.

2

The person liable to the annual allowance charge is the individual.

C23

The individual is liable to the annual allowance charge whether or not—

a

the individual, and

b

the scheme administrator of the pension scheme or schemes concerned,

are resident, ordinarily resident or domiciled in the United Kingdom.

4

The annual allowance charge is a charge at the rate of 40% in respect of the amount by which the total pension input amount exceeds the amount of the annual allowance.

5

That excess is not to be treated as income for any purpose of the Tax Acts.

6

The following sections make further provision about the annual allowance charge—

  • section 228 (annual allowance),

  • section 229 (total pension input amount to be aggregate of pension input amounts for pension input periods ending in tax year),

  • sections 230 to 237 (pension input amounts), and

  • section 238 (pension input period).

7

Schedule 36 contains (in Part 4) transitional provision about the annual allowance charge.