Part 4Pension schemes etc

Chapter 5Registered pension schemes: tax charges

Annual allowance charge

229Total pension input amount

(1)

The total pension input amount is arrived at by aggregating the pension input amounts in respect of each arrangement relating to the individual under a registered pension scheme of which the individual is a member.

(2)

The pension input amount in respect of an arrangement—

(a)

is the amount arrived at under sections 230 to 232 if it is a cash balance arrangement,

(b)

is the amount arrived at under section 233 if it is any other sort of money purchase arrangement,

(c)

is the amount arrived at under sections 234 to F1236A if it is a defined benefits arrangement, and

(d)

is the amount arrived at under section 237 if it is a hybrid arrangement.

(3)

But there is no pension input amount in respect of an arrangement if, before the end of the tax year, the individual—

F2(a)

satisfies the severe ill-health condition, or

(b)

has died.

F3(4)

For the purposes of subsection (3)(a) the individual satisfies the severe ill-health condition if the individual—

(a)

becomes entitled to all the benefits to which the individual is entitled under the arrangement in consequence of the scheme administrator having received evidence from a registered medical practitioner that the individual is suffering from ill-health which makes the individual unlikely to be able (otherwise than to an insignificant extent) to undertake gainful work (in any capacity) before reaching pensionable age,

(b)

becomes entitled to a serious ill-health lump sum under the arrangement, or

(c)

is a member of the armed forces of the Crown who becomes entitled under the arrangement to a benefit on which no liability to income tax arises by virtue of section 641(1) of ITEPA 2003.

F4(5)

Subsection (2) is subject to section 237ZA (calculation of pension input amounts for input periods ending in 2015-16).