63(1)Section 227 of FA 2004 (pensions under registered pension schemes: annual allowance charge) is amended as follows.U.K.
(2)In subsection (1) (imposition of the charge) for the words from “where” to the end substitute “ where an individual who is a member of one or more registered pension schemes has a chargeable amount for a tax year. ”
(3)After subsection (1) insert—
“(1A)The chargeable amount (if any) is to be determined in accordance with section 227ZA.”
(4)In subsection (4) (basic calculation of charge) for the words in the first sentence after “in respect of” substitute “ the chargeable amount. ”
(5)In subsection (4A) (the appropriate rate) for “excess” (in each place) substitute “ chargeable amount ”.
(6)In subsection (5) (excess is not income) for “That excess” substitute “ The chargeable amount ”.
(7)In subsection (6) (further provision)—
(a)before the entry for section 228 insert—
“sections 227ZA and 227B (chargeable amount),
sections 227C to 227G (supplemental provision for calculations under section 227B),”,
(b)in the entry for section 229, for “229” substitute “ 229(1) ”, and
(c)after that entry insert— “ section 229(2) to (4) (how to arrive at the pension input amount in respect of an arrangement), ”.
(8)The amendments made by this paragraph have effect for the tax year 2015-16 and subsequent tax years.
64(1)In FA 2004 after section 227 insert—U.K.
(1)The chargeable amount is the alternative chargeable amount (see section 227B) if—
(a)the year is—
(i)the tax year in which the individual first flexibly accesses pension rights (see section 227G), or
(ii)a tax year later than that tax year,
(b)the money-purchase input sub-total (see section 227C) exceeds £10,000, and
(c)the alternative chargeable amount exceeds the default chargeable amount.
(2)Otherwise, the chargeable amount is the default chargeable amount.
(3)The default chargeable amount is the amount (if any) by which—
(a)the total pension input amount calculated in accordance with section 229(1), exceeds
(b)the annual allowance for the year in the case of the individual (see sections 228(1) and 228A).”
(2)The amendment made by this paragraph has effect for the tax year 2015-16 and subsequent tax years.