Section 227B The alternative chargeable amountF1

United Kingdom

(1)

The alternative chargeable amount is the total of—

(a)

the amount (if any) by which the defined-benefit input sub-total exceeds the alternative annual allowance, and

(b)

the amount by which the money-purchase input sub-total exceeds F2£10,000.

F3 F4(F52)

The alternative annual allowance is—

AA - £ £10,000

where F6X is the annual allowance for the year in the case of the individual (see sections 228(1) and 228A).

(3)

The defined-benefit input sub-total is the total of—

(a)

the pension input amounts in respect of each defined benefits arrangement relating to the individual under a registered pension scheme of which the individual is a member (see section 229(2)(c)),

(b)

the pension input amounts in respect of each hybrid arrangement—

(i)

relating to the individual under a registered pension scheme of which the individual is a member, and

(ii)

in respect of which the pension input amount is input amount C mentioned in section 237, and

(c)

any amounts required to be included by section F7... 227F(4) or (6) (pension input periods that end in the year F8and contain the day on which rights are first flexibly accessed F9...).

(4)

Subsection (3)(b) is subject to section 227D (pension input amounts for certain hybrid arrangements).

(5)

If, in the case of a hybrid arrangement, input amount C mentioned in section 237—

(a)

is a relevant input amount for the purposes of section 237, and

(b)

is equal to—

(i)

input amount A F10, AA or B mentioned in section 237 if that is the only other relevant input amount for the purposes of section 237, or

(ii)

the greater F11or greatest of input amounts A F12, AA and B mentioned in section 237 if F13at least two of those amounts are relevant input amounts for the purposes of section 237,

the pension input amount in respect of the arrangement is, for the purposes of subsection (3)(b) and sections 227C(1)(b) and 227D(1)(c), treated as being input amount A F14, AA or B or, as the case may be, the greater F15or greatest of input amounts A , AA and B (and, in either case, not input amount C).

Annotations

Textual amendments

F1: Ss. 227B-227G inserted (17.12.2014) (with effect in accordance with Sch. 1 para. 65(2) of the amending Act) by Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 65(1)
F2: Sum in s. 227B(1)(b) substituted (for the tax year 2023-24 and subsequent tax years) by Finance (No. 2) Act 2023 (c. 30), s. 21(2)(b)(4)
F3: "X" substituted for "AA" in s. 227B(2) formula substituted (1.8.2022) by Finance Act 2021 (c. 26), Sch. 5 paras. 13(2), 25(1); S.I. 2022/874, reg. 2
F4: S. 227B(2) formula: "£10,000" substituted for "£4000" (for the tax year 2023-24 and subsequent tax years) by Finance (No. 2) Act 2023 (c. 30), s. 21(2)(b)(4)
F5: "£4,000" in s. 227B(2) formula substituted (with effect in accordance with s. 7(5) of the amending Act) for "£10,000" by Finance (No. 2) Act 2017 (c. 32), s. 7(3)
F6: Word in s. 227B(2) substituted (1.8.2022) by Finance Act 2021 (c. 26), Sch. 5 paras. 13(2), 25(1); S.I. 2022/874, reg. 2
F7: Words in s. 227B(3)(c) omitted (with effect in accordance with Sch. 4 para. 4(3) of the amending Act) by virtue of Finance (No. 2) Act 2015 (c. 33), Sch. 4 para. 4(2)(a)(i)
F8: Words in s. 227B(3)(c) substituted (with effect in accordance with Sch. 4 para. 4(3) of the amending Act) by Finance (No. 2) Act 2015 (c. 33), Sch. 4 para. 4(2)(a)(ii)
F9: Words in s. 227B(3)(c) omitted (with effect in accordance with Sch. 4 para. 4(3) of the amending Act) by virtue of Finance (No. 2) Act 2015 (c. 33), Sch. 4 para. 4(2)(a)(iii)
F10: Word in s. 227B(5)(b)(i) inserted (1.8.2022) by Finance Act 2021 (c. 26), Sch. 5 paras. 13(3), 25(1); S.I. 2022/874, reg. 2
F11: Words in s. 227B(5)(b)(ii) inserted (1.8.2022) by Finance Act 2021 (c. 26), Sch. 5 paras. 13(4)(a), 25(1); S.I. 2022/874, reg. 2
F12: Word in s. 227B(5)(b)(ii) inserted (1.8.2022) by Finance Act 2021 (c. 26), Sch. 5 paras. 13(4)(b), 25(1); S.I. 2022/874, reg. 2
F13: Words in s. 227B(5)(b)(ii) substituted (1.8.2022) by Finance Act 2021 (c. 26), Sch. 5 paras. 13(4)(c), 25(1); S.I. 2022/874, reg. 2
F14: Word in s. 227B(5) inserted (1.8.2022) by Finance Act 2021 (c. 26), Sch. 5 paras. 13(5)(a), 25(1); S.I. 2022/874, reg. 2
F15: Words in s. 227B(5) inserted (1.8.2022) by Finance Act 2021 (c. 26), Sch. 5 paras. 13(5)(b), 25(1); S.I. 2022/874, reg. 2

Notes on Part 4

Modifications

C1: Pt. 4 modified (N.I.) (1.4.2006) by The Firemens Pension Scheme Order (Northern Ireland) 2006 (S.R. 2006/210), arts. 1(2), 103
C2: Pt. 4 modified (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 9, 10
C3: Pt. 4 modified (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 12
C4: Pt. 4 modified (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 13(5)
C5: Pt. 4 modified (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 26
C6: Pt. 4 modified (31.12.2007) by Police and Justice Act 2006 (c. 48), s. 53(1), Sch. 3 para. 7; S.I. 2007/3203, art. 3(b)
C7: Pt. 4 modified (1.7.2008) (N.I.) (with effect in accordance with reg. 1 of the amending Rule) by The Health and Social Care (Pension Scheme) Regulations (Northern Ireland) 2008 (S.R. 2008/256), regs. 1, 124(1) (with regs. 134, 258)
C8: Pt. 4 modified by The Taxation of Pension Schemes (Transitional Provisions) Order 2006 (S.I. 2006/572), reg. 5A (as inserted (6.4.2006) by S.I. 2008/2990, arts. 1(1), 3)
C9: Pt. 4 applied (21.7.2009) by Finance Act 2009 (c. 10), Sch. 35 para. 18
C10: Pt. 4 modified (19.7.2011) by Finance Act 2011 (c. 11), Sch. 18 para. 14(3)
C11: Pt. 4 applied (with modifications) (with application in accordance with Sch. 22 para. 1 of the amending Act) by Finance Act 2013 (c. 29), Sch. 22 para. 1(2)
C12: Pt. 4 modified (17.7.2014) by Finance Act 2014 (c. 26), Sch. 6 para. 1(2)(3)
C13: Pt. 4: power to amend conferred (17.12.2014) by Taxation of Pensions Act 2014 (c. 30), s. 4(3)
C14: Pt. 4 modified (15.9.2016) by Finance Act 2016 (c. 24), Sch. 4 para. 1
C15: Pt. 4 modified (15.9.2016) by Finance Act 2016 (c. 24), Sch. 4 para. 9(2)
C16: Pt. 4 modified (with effect in relation to the tax year 2024-25 and subsequent tax years) by The MPs’, Senedd and Assembly Pension Schemes (Tax) Regulations 2025 (S.I. 2025/52), regs. 1(2)(3), 6
C17: Pt. 4 modified (14.7.2026 for the tax year 2014-15 and subsequent tax years) by The Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) Regulations 2026 (S.I. 2026/673), regs. 1(2), 10

Notes on Chapter 5

Modifications

C1: Pt. 4 applied (21.7.2009) by Finance Act 2009 (c. 10), Sch. 35 para. 18
C2: Pt. 4 modified (19.7.2011) by Finance Act 2011 (c. 11), Sch. 18 para. 14(3)
C3: Pt. 4 modified (with effect in relation to the tax year 2024-25 and subsequent tax years) by The MPs’, Senedd and Assembly Pension Schemes (Tax) Regulations 2025 (S.I. 2025/52), regs. 1(2)(3), 6