Section 228ZA Tapered reduction of annual allowance: high-income individualF1

If the individual is a high-income individual for the tax year, the amount of the annual allowance for the tax year in the case of the individual is the amount specified for the tax year by or under section 228 reduced (but not below F3£10,000) by—F4

where AI is the individual's adjusted income for the tax year.

If the amount of the reduction under subsection (1) would otherwise not be a multiple of £1, it is to be rounded down to the nearest amount which is a multiple of £1.

The individual is a “high-income individual” for the tax year if—

The individual's “adjusted income” for the tax year is—

The individual's “threshold income” for the tax year is—

In subsection (5)—

• “relevant salary sacrifice arrangements” means arrangements—

  1. (a)

     under which the individual gives up the right to receive general earnings or specific employment income in return for the making of relevant pension provision, and

  2. (b)

     which are made on or after 9 July 2015 (and whether before or after the start of the employment concerned), and

• “relevant flexible remuneration arrangements” means arrangements—

  1. (a)

     under which the individual and an employer of the individual agree that relevant pension provision is to be made rather than the individual receive some description of employment income, and

  2. (b)

     which are made on or after 9 July 2015 (and whether before or after the start of the employment concerned).

In subsection (6) “relevant pension provision” means the payment of contributions (or additional contributions) to a pension scheme in respect of the individual or otherwise (by an employer of the individual or any other person) to secure an increase in the amount of the benefits to which the individual or any person who is a dependant of, or is connected with, the individual is actually or prospectively entitled under a pension scheme.

In subsection (7) “increase” includes increase from nil.

Section 993 of ITA 2007 (meaning of “connected” persons) applies for the purposes of subsection (7).