Finance Act 2004

Annual allowance chargeU.K.

8(1)The provisions of this Part relating to the annual allowance charge (“the annual allowance provisions”) apply in relation to an individual who is a currently-relieved member of a currently-relieved non-UK pension scheme [F1and its scheme manager] as if the currently-relieved non-UK pension scheme were a registered pension scheme.U.K.

(2)Sub-paragraph (1) has effect subject to the provision made by and under paragraphs 9 to 12.

(3)A pension scheme is a currently-relieved non-UK pension scheme in relation to a tax year if—

(a)relief from tax is given in respect of contributions paid during the tax year under the pension scheme by virtue of Schedule 33 (overseas pension schemes: migrant member relief) or double tax arrangements, or

(b)a member of the pension scheme is, or members of the pension scheme are, exempt from liability to tax by virtue of section 307 of ITEPA 2003 (exemption for provision made by employer for retirement or death benefit) in respect of provision made under the pension scheme at any time during the tax year when the pension scheme is an overseas pension scheme.

(4)An individual is a currently-relieved member of a currently-relieved non-UK pension scheme in relation to a tax year if—

(a)any of the contributions in respect of which relief is given as mentioned in sub-paragraph (3)(a) are contributions paid by or on behalf of, or in respect of, the individual, or

(b)the individual is the member, or one of the members, who is exempt from liability to tax as mentioned in sub-paragraph (3)(b).

9U.K.The annual allowance provisions apply by virtue of paragraph 8 in relation to an individual who is a currently-relieved member of a currently-relieved non-UK pension scheme as if references to the pension input period of an arrangement under the pension scheme that ends in a tax year were to the tax year.

[F29ZA(1)For the purposes of determining the annual allowance charge in the case of an individual for a relevant tax year, a pension scheme is to be treated for the purposes of section 227G as a registered pension scheme if—U.K.

(a)in relation to that tax year, or

(b)in relation to any earlier tax year (whether or not a relevant tax year),

the scheme is a currently-relieved non-UK pension scheme and the individual is a currently-relieved member of the scheme.

(2)For the purposes of this paragraph, a tax year is a “relevant tax year” in relation to an individual if—

(a)it is—

(i)the first tax year in relation to which the individual is a currently-relieved member of any currently-relieved non-UK pension scheme, or

(ii)if later, the tax year 2015-16, or

(b)it is a tax year subsequent to the tax year identified under paragraph (a).

9ZB(1)Sub-paragraph (2) has effect if at any particular time—U.K.

(a)an individual is a transfer member of a relevant non-UK scheme,

(b)the scheme is, or at any previous time has been, a qualifying recognised overseas pension scheme, and

(c)the particular time is not in a tax year in relation to which the scheme is a currently-relieved non-UK pension scheme of which the individual is a currently-relieved member.

(2)Section 227G applies in the individual's case as if the scheme, so far as relating to the individual's relevant transfer fund [F3or ring-fenced transfer funds] under the scheme, were a registered pension scheme at the particular time.

(3)The reference in sub-paragraph (2) to the individual's relevant transfer fund under the relevant non-UK scheme is to be read in accordance with paragraph 4.

[F4(4)The reference in sub-paragraph (2) to the individual's ring-fenced transfer funds under the relevant non-UK scheme is to be read in accordance with paragraph 1.]]

[F59A(1)This paragraph applies where an individual—U.K.

(a)is a currently-relieved member of a currently-relieved non-UK pension scheme in relation to a tax year, but

(b)was a member, but not a currently-relieved member, of the currently-relieved non-UK pension scheme in relation to any one or more of the 3 immediately preceding tax years (a “relevant tax year”).

(2)Section 228A has effect in relation to the individual for the tax year as it would if the individual had been a currently-relieved member of the pension scheme for the relevant tax year (or each of the relevant tax years) and paragraphs 10 and 11 of this Schedule were omitted.

9B(1)This paragraph applies where an individual—U.K.

(a)is a member of a registered pension scheme in relation to a tax year, and

(b)was a currently-relieved member of a currently-relieved non-UK pension scheme in relation to any one or more of the 3 immediately preceding tax years (a “relevant tax year”).

(2)Section 228A has effect in relation to the individual for the tax year as it would if the currently-relieved non-UK pension scheme had been a registered pension scheme for the relevant tax year (or each of the relevant tax years).]

10(1)Sections 230 (1) and 234 (1) (cash balance and defined benefits arrangements) apply by virtue of paragraph 8 in relation to an individual who is a currently-relieved member of a currently-relieved non-UK pension scheme in relation to a tax year as if the increase in the value of the individual’s rights under an arrangement under the pension scheme relating to the individual during the tax year were the greater of—U.K.

(a)the appropriate fraction of what it otherwise would be, and

(b)the amount of any contributions paid under the arrangement during the tax year by or on behalf of the individual (otherwise than by an employer) in respect of which relief from tax is given by virtue of Schedule 33 (overseas pension schemes: migrant member relief) or double tax arrangements;

and section 237 (hybrid arrangements) applies accordingly.

[F6(2)The appropriate fraction is—

(3)An employment is a relevant employment if it is an employment with an employer who is a sponsoring employer in relation to the currently-relieved non-UK pension scheme.

11(1)Section 233 (1) (other money purchase arrangements) applies by virtue of paragraph 8 in relation to an individual who is a currently-relieved member of a currently-relieved non-UK pension scheme in relation to a tax year as if—U.K.

(a)the reference in paragraph (a) to relievable pension contributions paid by or on behalf of the individual under an arrangement under the pension scheme relating to the individual were to those in respect of which relief from tax is given by virtue of Schedule 33 (overseas pension schemes: migrant member relief) or double tax arrangements, and

(b)the reference in paragraph (b) to contributions paid in respect of the individual under such an arrangement by an employer of the individual were to the appropriate fraction of contributions so paid;

and section 237 applies accordingly.

[F7(2)The appropriate fraction is—

[F8(3)Where a calculation under section 233(1) as applied by paragraph 8 is being carried out for the purposes of section 227F(3) in respect of a period that ends at the end of a tax year (see paragraph 9 and section 227F(1)), the appropriate fraction for the purposes of sub-paragraph (1)(b) is the appropriate fraction given by sub-paragraph (2) for that tax year (even where the period in respect of which the calculation is being carried out is part only of that tax year).]

12(1)The annual allowance provisions apply by virtue of paragraph 8 in relation to an individual who is a currently-relieved member of a currently-relieved non-UK pension scheme [F9and its scheme manager] subject to any omissions, additions and other modifications contained in regulations made by the Board of Inland Revenue.U.K.

(2)Regulations under sub-paragraph (1) may—

(a)include provision having effect in relation to times before they are made,

(b)confer discretion on the Board of Inland Revenue or the Inland Revenue (subject to a right of appeal against any decision taken in exercise of the discretion),

[F10(ba)contain transitional provisions and savings,] and

(c)make different provision for different cases.