SCHEDULES
SCHEDULE 35Pensions: special annual allowance charge
Increased special annual allowance
17
1
This paragraph has effect where the mean of the infrequent money purchase contributions amount for the tax years 2006-07, 2007-08 and 2008-09 (“the relevant mean”) exceeds £20,000.
2
Where the relevant mean is less than £30,000, this Schedule has effect as if the references in paragraph 1(4) and (5) to £20,000 were instead to the relevant mean.
3
Where the relevant mean is £30,000 or more, this Schedule has effect as if those references were instead to £30,000.
4
The “infrequent money purchase contributions amount” for a tax year is the aggregate of any relevant contributions paid in the tax year—
a
under money purchase arrangements, other than cash balance arrangements, under registered pension schemes, and
b
less frequently than on a quarterly basis;
(and so is nil if no such contributions were so paid).
5
But if the infrequent money purchase contributions amount for a tax year would otherwise be greater than the annual allowance for the tax year, it is to be taken to be the annual allowance for the tax year.
6
“Relevant contributions” means contributions which are—
a
relievable pension contributions by or on behalf of the individual, or
b
contributions paid by an employer of the individual in respect of the individual.