Appropriate age-related percentages for appropriate personal pension schemes4

1

This article applies for the purposes of section 45(1) of the 1993 Act (amount of minimum contributions).

2

For a relevant tax year, the appropriate age-related percentage in respect of earnings of an earner is determined in accordance with paragraph (3), (4) or (5).

3

If the earnings do not exceed the low earnings threshold, the appropriate age-related percentage is the column B percentage.

4

If the earnings exceed the low earnings threshold, but do not exceed the upper earnings threshold, then—

a

in respect of the part of the earnings that does not exceed the low earnings threshold, the appropriate age-related percentage is the column B percentage;

b

in respect of the part of the earnings that exceeds the low earnings threshold, the appropriate age-related percentage is the column C percentage.

5

If the earnings exceed the low earnings threshold and the upper earnings threshold, then—

a

in respect of the part of the earnings that does not exceed the low earnings threshold, the appropriate age-related percentage is the column B percentage;

b

in respect of the part of the earnings that exceeds the low earnings threshold but does not exceed the upper earnings threshold, the appropriate age-related percentage is the column C percentage; and

c

in respect of the part of the earnings that exceeds the upper earnings threshold, the appropriate age-related percentage is the column D percentage.

6

For a relevant tax year, in respect of earnings of an earner—

a

the column B percentage is the percentage given in column B of the appropriate table by reference to the age of the earner on the day immediately before the start of that tax year;

b

the column C percentage is the percentage given in column C of the appropriate table by reference to the age of the earner on the day immediately before the start of that tax year;

c

the column D percentage is the percentage given in column D of the appropriate table by reference to the age of the earner on the day immediately before the start of that tax year.

7

The appropriate table is the table in—

a

Schedule 2, if the relevant tax year is 2007-2008;

b

Schedule 3, if the relevant tax year is 2008-2009;

c

Schedule 4, if the relevant tax year is 2009-2010;

d

Schedule 5, if the relevant tax year is 2010-2011;

e

Schedule 6, if the relevant tax year is 2011-2012.