# Finance Act 2010, Section 48: Extension of special annual allowance charge


(1) Schedule 35 to FA 2009 (special annual allowance charge) is amended as follows.
(2) In paragraph 1(2) (high-income individual)—
(a) in the first sentence, for “£150,000” substitute “ £130,000 ”, and
(b) insert at the end—
“Paragraph 16A makes special provision about cases in which the individual's relevant income for the tax year 2009-10 is less than £150,000.”
(3) In paragraph 2 (calculation of relevant income)—
(a) in the last sentence of sub-paragraph (1),
(b) in sub-paragraph (2) (in each place), and
(c) in sub-paragraph (3) (in both places),
for “£150,000” substitute “ £130,000 ”.
(4) After sub-paragraph (5) of that paragraph insert—
“(5A) If—
(a) the individual's relevant income for the tax year (whether that is the tax year 2009-10 or a later tax year) would (apart from this sub-paragraph) be less than £130,000 if the reference in sub-paragraph (5) to a scheme made on or after 22 April 2009 were to a scheme made on or after 9 December 2009, and
(b) the individual's relevant income for the tax year 2009-10 is less than £150,000,
the individual's relevant income for the tax year is to be assumed to be less than £130,000.”
(5) In paragraph 11(3)(b), after “22 April” insert “ 2009 ”.
(6) After paragraph 16 insert—
“Individuals with relevant income below £150,000 in 2009-10
16A (1) This paragraph has effect if the individual's relevant income for the tax year 2009-10 is less than £150,000.
(2) References in this Schedule to a pre-22 April 2009 pension input amount are to a pre-9 December 2009 pension input amount.
(3) References in this Schedule to noon on 22 April 2009 are to 9 December 2009.
(4) Other references in this Schedule to 22 April 2009 (except in paragraph 2) are to 9 December 2009.
(5) The reference in paragraph 16(2) to 21 April 2009 is to 8 December 2009.
(6) If the amount arrived at in the case of the individual under sub-paragraph (1) of paragraph 2 for the tax year 2009-10 is less than £150,000, take the steps in that sub-paragraph in relation to the tax year 2007-08 and the tax year 2008-09.
If the result is £150,000 or more for either or both of those earlier tax years the individual's relevant income for the tax year 2009-10 is to be assumed for the purposes of sub-paragraph (1) to be £150,000.
(7) If there is a scheme the main purpose, or one of the main purposes, of which is to secure that the individual's relevant income for the tax year 2009-10 is less than £150,000, it is to be assumed for the purposes of sub-paragraph (1) to be £150,000.”
(7) The amendments made by this section have effect for the tax year 2009-10 and subsequent tax years (but see paragraph 21(2) of Schedule 35 to FA 2009).

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Source: https://www.legislation.gov.uk/ukpga/2010/13/section/48 (the official version)
Page: https://openlegislation.uk/finance-act-2010/section-48
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.