# The Special Annual Allowance Charge (Variation of Rate) Order 2010, Article 2: Amendment of paragraph 1(8) of Schedule 35 to the Finance Act 2009


In paragraph 1(8) of Schedule 35 to the Finance Act 2009 (pensions: special annual allowance charge), for “rate of 20%” substitute “appropriate rate” and insert at the end—
“For this purpose “the appropriate rate” is—
(a) 0% in relation to so much (if any) of the chargeable amount as, when added to the reduced net income amount, does not exceed the basic rate limit,
(b) 20% in relation to so much (if any) of the chargeable amount, as when so added, exceeds the basic rate limit but does not exceed the higher rate limit, and
(c) 30% in relation to so much (if any) of the chargeable amount as, when so added, exceeds the higher rate limit.
In this sub-paragraph—
“chargeable amount” means the amount in respect of which the special annual allowance charge is charged, and
“the reduced net income amount” means the amount after taking step 3 in section 23 of ITA 2007 in the case of the individual for the tax year.”.

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Source: https://www.legislation.gov.uk/ukdsi/2010/9780111490464/article/2 (the official version)
Page: https://openlegislation.uk/draft-special-annual-allowance-charge-variation-of-rate-order-2010/article-2
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.