Section 228C Annual allowance for, and carry-forward from, 2015-16F1

one beginning with 6 April 2015 and ending with 8 July 2015 (“the pre-alignment tax year”), and

one beginning with 9 July 2015 and ending with 5 April 2016 (“the post-alignment tax year”).

separate annual allowance charges for each of the pre-alignment and post-alignment tax years cannot arise, but a single annual allowance charge for the tax year 2015-16 arises if the individual has a chargeable amount for either or each of the pre-alignment and post-alignment tax years, and

that single annual allowance charge is calculated as if—

the amount specified in section 228(1) (annual allowance for tax year) is treated as being £80,000, and

in each of sections 227ZA(1)(b) and 227B(1)(b) and (2), the reference to £10,000 is treated as a reference to £20,000.

the amount specified in section 228(1) is treated as being nil,

section 227B(2) (amount of alternative annual allowance) has effect as if “AA” were substituted for “AA – £10,000”,

if the chargeable amount in the individual's case for the pre-alignment tax year is the alternative chargeable amount, the reference to £10,000 in each of sections 227ZA(1)(b) and 227B(1)(b) is treated as being a reference to nil, and

if the chargeable amount in the individual's case for the pre-alignment tax year is the default chargeable amount, the reference to £10,000 in each of sections 227ZA(1)(b) and 227B(1)(b) is treated as being a reference—

if—

that excess is treated as being £40,000, and

if—

that excess is treated as being £30,000.

for “either or both of the two” there were substituted “ any one or more of the three ”, and

for “(or, where there is an excess for both of those tax years, the excess for both tax years)” there were substituted “ (or, where there is an excess for two or all three of those tax years, the excess for both or all those tax years) ”.

if—

that excess is treated as being £40,000 (and accordingly the amount aggregated under section 228A(5) in respect of that excess is so much of the £40,000 as has not been used up),

if—

that excess is treated as being £30,000 (and accordingly the amount aggregated under section 228A(5) in respect of that excess is so much of the £30,000 as has not been used up), and

in calculating for the purposes of section 228A(6) the amount of which of the excesses for different tax years had effect to reduce or eliminate the annual allowance charge for the post-alignment tax year, the amount of the excess for the pre-alignment tax year is to be taken to have done so before that for any other tax year and, subject to that, the amount of the excess for an earlier tax year is to be taken to have done so before that for a later year.