SCHEDULES

SCHEDULE 1Pension flexibility etc

Part 4Annual allowances

Basic structure of the annual allowance charge

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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.