Finance Act 2009

Part 2 Amendments of other Acts

FA 2004

10 Part 4 of FA 2004 (pension schemes etc) is amended as follows.

11 In section 192 (relief for pension contributions at source), for subsection (4) substitute—

“(4) If (apart from this section) income tax at the higher rate or the additional rate is chargeable in respect of any part of the individual’s total income for the tax year, on the making of a claim the basic rate limit and the higher rate limit for the tax year in the individual’s case are increased by the amount of the contribution.”

12 In section 208 (unauthorised payments charge), for subsection (6) substitute—

“(6) The Treasury may by order amend subsection (5) so as to vary the rate of the unauthorised payments charge.

(6A) An order under subsection (6) may make provision for there to be different rates in different circumstances.”

13 In section 209 (unauthorised payments surcharge), for subsection (7) substitute—

“(7) The Treasury may by order amend subsection (6) so as to vary the rate of the unauthorised payments surcharge.

(8) An order under subsection (7) may make provision for there to be different rates in different circumstances.”

14 In section 215 (amount of lifetime allowance charge), after subsection (2) insert—

“(2A) The Treasury may by order amend subsection (2) so as to vary the rates of the lifetime allowance charge.

(2B) An order under subsection (2A) may make provision for there to be different rates in different circumstances.”

15 In section 227 (annual allowance charge), after subsection (5) insert—

“(5A) The Treasury may by order amend subsection (4) so as to vary the rate of the annual allowance charge.

(5B) An order under subsection (5A) may make provision for there to be different rates in different circumstances.”

16 In section 240 (amount of scheme sanction charge), after subsection (3) insert—

“(3A) The Treasury—

(a) may by order amend subsection (1) so as to vary the rate of the scheme sanction charge, and

(b) may by order amend subsection (3)(a) so as to vary the percentage mentioned there.

(3B) An order under subsection (3A) may make provision for there to be different rates or percentages in different circumstances.”

17 In section 242 (de-registration charge), insert at the end—

“(5) The Treasury may by order amend subsection (4) so as to vary the rate of the de-registration charge.

(6) An order under subsection (5) may make provision for there to be different rates in different circumstances.”

18 (1) Section 282 (orders and regulations) is amended as follows.

(2) After subsection (1) insert—

“(1A) No order may be made under section 208(6), 209(7), 215(2A), 227(5A), 240(3A) or 242(5) unless a draft of the statutory instrument containing it has been laid before, and approved by a resolution of, the House of Commons.”

(3) In subsection (2), after “Part” insert “, if made without a draft having been approved by a resolution of the House of Commons,”.

ITTOIA 2005

19 ITTOIA 2005 is amended as follows.

20 In section 640(6)(b) (grossing-up of deemed income)—

(a) omit the “and” at the end of sub-paragraph (i), and

(b) insert at the end “up to and including the year 2009-2010, and

(iii) 50%, if the relevant tax year is the year 2010-2011 or any subsequent tax year.”

21 In section 669(3) (reduction in residuary income: inheritance tax on accrued income)—

(a) in paragraph (a), after “charged at” insert “the additional rate or”, and

(b) in paragraph (b), after “charged at” insert “the dividend additional rate or”.

22 In section 685A(3) (settlor-interested settlements), for “higher rate” substitute “additional rate”.

23 (1) Part 2 of Schedule 4 (index of defined expressions) is amended as follows.

(2) After the entry relating to “acquisition expenditure (in Chapter 9 of Part 2)” insert—

“additional rate

section 6(2) of ITA 2007 (as applied by section 989 of that Act).”

(3) After the entry relating to “distribution” insert—

“the dividend additional rate

section 8(3) of ITA 2007 (as applied by section 989 of that Act).”

F(No.2)A 2005

24 In section 7(5) of F(No.2)A 2005 (charge to income tax on social security pension lump sum)—

(a) in paragraph (d), after “basic rate limit for that year” insert “but does not exceed the higher rate limit for that year”, and

(b) after that paragraph insert—

“(e) if P’s Step 3 income for that year of assessment exceeds the higher rate limit for that year, the additional rate for that year.”