After section 228A (carry forward of unused annual allowance)3 insert—

“228BCarry forward: certain periods treated as pension input periods

(1)

This section applies where the first pension input period for a relevant arrangement relating to an individual ends in the tax year 2011-12, 2012-13 or 2013-14.

(2)

A period is a “carry forward period” for the purposes of this section if it—

(a)

is one of the 3 consecutive periods of 12 months immediately before the commencement date of the first pension input period, and

(b)

is a period in which the arrangement was in existence at any time.

(3)

Any amount that would, if a carry forward period were a pension input period of the arrangement, have been unused annual allowance available to the individual for the tax year 2011-12, 2012-13 or 2013-14 is to be treated as unused annual allowance available to the individual for that tax year.

(4)

In this section “relevant arrangement” means—

(a)

a cash balance arrangement,

(b)

a defined benefits arrangement, or

(c)

a hybrid arrangement the only benefits under which may be cash balance benefits or defined benefits.”.