Part 2Anti-avoidance and revenue protection
Pensions
48Extension of special annual allowance charge
1
Schedule 35 to FA 2009 (special annual allowance charge) is amended as follows.
2
In paragraph 1(2) (high-income individual)—
a
in the first sentence, for “£150,000” substitute “
£130,000
”
, and
b
insert at the end—
Paragraph 16A makes special provision about cases in which the individual's relevant income for the tax year 2009-10 is less than £150,000.
3
In paragraph 2 (calculation of relevant income)—
a
in the last sentence of sub-paragraph (1),
b
in sub-paragraph (2) (in each place), and
c
in sub-paragraph (3) (in both places),
for “£150,000” substitute “
£130,000
”
.
4
After sub-paragraph (5) of that paragraph insert—
5A
If—
a
the individual's relevant income for the tax year (whether that is the tax year 2009-10 or a later tax year) would (apart from this sub-paragraph) be less than £130,000 if the reference in sub-paragraph (5) to a scheme made on or after 22 April 2009 were to a scheme made on or after 9 December 2009, and
b
the individual's relevant income for the tax year 2009-10 is less than £150,000,
the individual's relevant income for the tax year is to be assumed to be less than £130,000.
5
In paragraph 11(3)(b), after “22 April” insert “
2009
”
.
6
After paragraph 16 insert—
16AIndividuals with relevant income below £150,000 in 2009-10
1
This paragraph has effect if the individual's relevant income for the tax year 2009-10 is less than £150,000.
2
References in this Schedule to a pre-22 April 2009 pension input amount are to a pre-9 December 2009 pension input amount.
3
References in this Schedule to noon on 22 April 2009 are to 9 December 2009.
4
Other references in this Schedule to 22 April 2009 (except in paragraph 2) are to 9 December 2009.
5
The reference in paragraph 16(2) to 21 April 2009 is to 8 December 2009.
6
If the amount arrived at in the case of the individual under sub-paragraph (1) of paragraph 2 for the tax year 2009-10 is less than £150,000, take the steps in that sub-paragraph in relation to the tax year 2007-08 and the tax year 2008-09.
If the result is £150,000 or more for either or both of those earlier tax years the individual's relevant income for the tax year 2009-10 is to be assumed for the purposes of sub-paragraph (1) to be £150,000.
7
If there is a scheme the main purpose, or one of the main purposes, of which is to secure that the individual's relevant income for the tax year 2009-10 is less than £150,000, it is to be assumed for the purposes of sub-paragraph (1) to be £150,000.
7
The amendments made by this section have effect for the tax year 2009-10 and subsequent tax years (but see paragraph 21(2) of Schedule 35 to FA 2009).