SCHEDULES
SCHEDULE 1Pension flexibility etc
Part 4Annual allowances
Basic structure of the annual allowance charge
63
1
Section 227 of FA 2004 (pensions under registered pension schemes: annual allowance charge) is amended as follows.
2
In subsection (1) (imposition of the charge) for the words from “where” to the end substitute “
where an individual who is a member of one or more registered pension schemes has a chargeable amount for a tax year.
”
3
After subsection (1) insert—
1A
The chargeable amount (if any) is to be determined in accordance with section 227ZA.
4
In subsection (4) (basic calculation of charge) for the words in the first sentence after “in respect of” substitute “
the chargeable amount.
”
5
In subsection (4A) (the appropriate rate) for “excess” (in each place) substitute “
chargeable amount
”
.
6
In subsection (5) (excess is not income) for “That excess” substitute “
The chargeable amount
”
.
7
In subsection (6) (further provision)—
a
before the entry for section 228 insert—
sections 227ZA and 227B (chargeable amount),
sections 227C to 227G (supplemental provision for calculations under section 227B),
b
in the entry for section 229, for “229” substitute “
229(1)
”
, and
c
after that entry insert— “
section 229(2) to (4) (how to arrive at the pension input amount in respect of an arrangement),
”
.
8
The amendments made by this paragraph have effect for the tax year 2015-16 and subsequent tax years.