Regulation 12 Redress for income tax charge connected to lifetime allowance

(1)

This regulation applies where a tax redress payment is made in respect of a recipient’s liability to an income tax charge under Part 9 of ITEPA 2003 where—

(a)

one or more benefit crystallisation events occurred in respect of a member under a relevant pension scheme in a tax year in the period beginning with 2015-16 and ending with 2023-24 (“the original events”), and

(b)

a charge to income tax (“the new charge”) subsequently arose in respect of that member in connection with a relevant benefit crystallisation event.

(2)

The qualifying amount is—

(a)

the amount of the new charge, less

(b)

both—

(i)

the amount that the new charge would have been if the amounts crystallised by the original events were calculated on the basis that the rectification exercise had been retrospective, and

(ii)

any overpaid amount that the recipient has not repaid to the relevant pension scheme.

(3)

In this regulation—

“overpaid amount” and “recipient” have the same meaning as in regulation 10;
“relevant benefit crystallisation event” has the same meaning as in section 637S of ITEPA 2003.