Finance Act 2022

9Liability of scheme administrator for annual allowance chargeU.K.

(1)Part 4 of FA 2004 (pension schemes etc) is amended as follows.

(2)In section 237B(5)(a) (liability of scheme administrator for annual allowance charge), for “not later than 31 July in the year following that in which the tax year ends” substitute “in accordance with the time limit in section 237BA”.

(3)After that section insert—

237BATime limit for notices under section 237B

(1)This section specifies the time limit for an individual to give a notice under section 237B(3) in relation to a pension scheme for a tax year (see section 237B(5)(a)).

(2)Except where subsection (5) applies, the individual must give the notice not later than 31 July in the year following the year in which the tax year ends.

(3)Subsection (5) applies where—

(a)at a relevant time, the scheme administrator gives the individual information about a change to the pension scheme input amount in relation to the pension scheme for the tax year,

(b)the scheme administrator is required to give the individual the information by regulations under section 251, and

(c)section 237B applies to the individual, in relation to the pension scheme and the tax year, as a result of that change.

(4)In subsection (3), “relevant time” means a time falling—

(a)on or after 2 May in the year following that in which the tax year in question ends, and

(b)before the end of the period of 6 years beginning with the end of the tax year in question.

(5)Where this subsection applies, the individual must give the notice before whichever is the earlier of the following—

(a)the end of the period of 3 months beginning with the day on which the scheme administrator gives the individual the information described in subsection (3)(a), and

(b)the end of the period of 6 years beginning with the end of the tax year in question.

(6)In this section, “pension scheme input amount” has the meaning given in section 237B(2).

(4)In section 254 (accounting for tax by scheme administrators)—

(a)in subsection (7A), for the words from “the period ending” to the end substitute the later of—

(a)the period ending with 31 December in the year following that in which that tax year ended, and

(b)the period following the period in which the scheme administrator receives the notice which gives rise to the liability,

subject to subsections (7AA) and (7B).,

(b)after that subsection insert—

(7AA)The tax described in subsection (7A) is to be taken for the purposes of subsection (2) to be charged in an earlier period if the scheme administrator makes an election to that effect in the return for the earlier period., and

(c)in subsection (7B)—

(i)omit “But”, and

(ii)after “(7A)” insert “or (7AA)”.