SCHEDULES

SCHEDULE 1 U.K. Minor and consequential amendments

Part 2 U.K. Other enactments

Finance (No. 2) Act 2005 (c. 22) U.K.

604 (1) Amend section 7 (charge to income tax on social security pension lump sum) as follows. U.K.

(2) In subsection (5) for “total income” in each place substitute “ Step 3 income ”.

(3) At the end insert—

“(9) For the purposes of this section P's “Step 3 income” means P's net income less allowances deducted at Step 3 of the calculation in section 23 of ITA 2007 (calculation of income tax liability).”