The Finance Act 2004 (Registered Pension Schemes and Annual Allowance Charge) Order 2024

EXPLANATORY NOTE

(This note is not part of the Order)

This Order amends the Finance Act 2004 (c. 12) by inserting a new section 236ZA. This section provides that where an individual has, at the end of the pension input period, service in a reformed public service pension scheme arrangement (“reformed arrangement”) and a public service pension scheme legacy arrangement (“legacy arrangement”) and where the opening value of the rights under the legacy arrangement exceeds the closing value of those rights, the pension input amount in respect of the reformed arrangement is to be reduced by the amount of the excess (but not below zero).

In order for arrangements to “correspond”, the schemes must be connected (within the meaning of section 4(6) of the Public Service Pension Act 2013 (c. 25) or the Public Service Pensions Act (Northern Ireland) 2014) (c.2 (N.I.)), and they must be in respect of schemes to which the final salary link provisions apply (either under the Public Service Pensions Act 2013 or the Public Service Pensions Act (Northern Ireland) 2014).

The amendments in this Order have effect for the tax year 2023-24 and subsequent tax years. Authority for the retrospective effect of these amendments is provided for by section 282(A1) of the Finance Act 2004.

A Tax Information and Impact Note covering this instrument will be published on the website at http://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins.