Finance Act 2000

Other restrictions on approval E+W+S+N.I.

13 (1) Amend section 638 as follows. E+W+S+N.I.

(2) In subsection (3)(a) (limit on aggregate contributions in any year) after “does not exceed" insert “ the earnings threshold for that year or, if greater, ”

(3) In subsection (4) (the permitted maximum) omit—

(a) in the words preceding paragraph (a), “the aggregate of";

(b) paragraph (b) (which refers to relief by virtue of section 642, abolished by this Schedule); and

(c) the word “and" immediately preceding that paragraph.

(4) After subsection (7A) (prohibition of contributions or transfer payments after pension date) insert—

“(7B) Subsection (7A) above shall have effect subject to and in accordance with section 638ZA.”.

(5) After subsection (8) add—

“(9) The Board may only approve a personal pension scheme if it prohibits the acceptance of contributions in any form other than—

(a) the payment of monetary sums; or

(b) the transfer, subject to the conditions in subsection (12) below, of eligible shares in a company;

and any reference in this Chapter to the payment of contributions includes a reference to the making of contributions in accordance with paragraph (b) above.

(10) For the purposes of this Chapter, the amount of a contribution made by way of a transfer of shares shall be the aggregate market value of the shares at the date of the transfer.

(11) For the purposes of subsection (9)(b) above, “eligible shares” means shares—

(a) which the member has exercised the right to acquire, or

(b) which have been appropriated to the member,

in accordance with the provisions of a savings-related share option scheme, an approved profit-sharing scheme or an employee share ownership plan.

(12) The conditions mentioned in subsection (9)(b) above are—

(a) in relation to shares which the member has exercised his right to acquire in accordance with the provisions of a savings-related share option scheme, that the transfer of the shares as contributions under the personal pension scheme takes place before the expiry of the period of 90 days following the exercise of that right;

(b) in relation to shares appropriated to the member in accordance with the provisions of an approved profit-sharing scheme or an employee share ownership plan, that the transfer of the shares as contributions under the personal pension scheme takes place before the expiry of the period of 90 days following the date when the member directed the trustees of the approved profit-sharing scheme or employee share ownership plan to transfer the ownership of the shares to him or, if earlier, the release date in relation to the shares.

(13) In this section—

• “approved profit-sharing scheme” has the same meaning as in section 186;

• “employee share ownership plan” has the same meaning as in Schedule 8 to the Finance Act 2000;

• “market value” shall be construed in accordance with section 272 of the M1 Taxation of Chargeable Gains Act 1992;

• “savings-related share option scheme” has the same meaning as in Schedule 9 (see paragraph 1(1) of that Schedule).”.

(6) Sub-paragraph (2) has effect for the year 2001-02 and subsequent years of assessment.

(7) Sub-paragraph (3) has effect in relation to contributions paid in the year 2001-02 or any subsequent year of assessment.

(8) Sub-paragraph (5) has effect in relation to contributions in the year 2001-02 or any subsequent year of assessment.

Annotations:

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Marginal Citations

M1 1992 c. 12.