Finance Act 2008

19 (1) Schedule 34 to FA 2004 (which applies certain charges to non-UK pension schemes) is amended as follows. U.K.

(2) In paragraph 10(2), in the definition of EI, after “tax year,” insert “ excluding any such income which is exempt income (within the meaning of section 8 of ITEPA 2003), ”.

(3) In paragraph 11(2), in the definition of EI, after “tax year,” insert “ excluding any such income which is exempt income (within the meaning of section 8 of ITEPA 2003), ”.

(4) The amendment made by sub-paragraph (2) has effect for the tax year 2008-09 and subsequent tax years.

(5) The amendment made by sub-paragraph (3) has effect—

(a) for the tax year 2007-08 in accordance with sub-paragraph (6), and

(b) for the tax year 2008-09 and subsequent tax years.

(6) For the tax year 2007-08, for the purposes of paragraph 11(1)(b) of Schedule 34 to FA 2004 the appropriate fraction of the contributions mentioned in that paragraph is the aggregate of—

(a) the appropriate fraction of so much of those contributions as are paid before 12 March 2008, calculated in accordance with paragraph 11(2) unamended by sub-paragraph (3), and

(b) the appropriate fraction of so much of those contributions as are paid on and after that date, calculated in accordance with paragraph 11(2) as amended by sub-paragraph (3).