PART 2Modifications of Part 4 of the Finance Act 2004
CHAPTER 2Annual allowance
Chapter 1 schemes: operation of scheme pays for 2022-239
1
Section 237B of FA 2004 (liability of scheme administrator) applies in relation to—
a
a Chapter 1 scheme,
b
the tax year 2022-23, and
c
an individual who has any remediable service in any earlier tax year,
subject to the modifications specified in paragraph (2).
2
The modifications of section 237B of FA 2004 mentioned in paragraph (1) are as follows—
a
the conditions in paragraphs (a) and (b) of subsection (1) are to be treated as met;
b
subsection (3) has effect as if for paragraph (a) there were substituted—
a
does not exceed—
where—
“A” is the amount of the individual’s liability to the annual allowance18 charge for the tax year;
“B” is the aggregate of the pension input amounts19 for the tax year in respect of arrangements relating to the individual under the pension scheme;
“C” is the aggregate of the pension input amounts for the tax year in respect of arrangements relating to the individual under all registered pension schemes; and
c
subsections (4) to (4B) are to be ignored.
3
In the application of section 237BA of FA 2004 in relation to a scheme pays notice given in relation to a Chapter 1 scheme for the tax year 2022-23 by an individual who has any remediable service in any earlier tax year, the reference in subsection (2) of that section to 31st July is to be read as a reference to 6th July 2025 or, where the condition in paragraph (4) is met, 6th July 2027.
4
The condition is that—
a
the remediable service in question is pensionable under a Chapter 1 legacy scheme, and
b
the member is a pensioner or deceased member.
5
For the purposes of paragraph (4)(b) the member is a pensioner or deceased member if an election under section 6 of PSPJOA 2022 (immediate choice to receive new scheme benefits) has been made, or is capable of being made, in respect of them.