Introduction New section 213O Anti-avoidance
74.New section 213O(1) introduces an anti-avoidance rule which applies if there is a high income excess relief charge scheme for the tax year.
75.New section 213O(2) to (5) defines a high income excess relief charge scheme by reference to there being a “scheme” to avoid the whole or part of the high income excess relief charge. The scheme has to involve the individual reducing their gross or relevant income or their total pension savings amount, but subject to such a reduction being redressed by an increase in their income or pension savings amount in a different tax year, or the provision of some other benefit at any other time. The rule also applies to connected persons.
76.New section 213O(6) provides that where the anti-avoidance rule applies, the scheme is to be ignored in determining the individual’s gross or relevant income or pension savings amount.
77.New section 213O(7) clarifies the scope of ‘scheme’ for this purpose.
78.New section 213O(8) defines connected person by reference to the definition in section 993 of ITA.