Part 4: Income tax, corporation tax and capital gains tax Section 23 and Schedule 4: Pensions: annual allowance Details of the section and Schedule 4 Part 5: Other amendments
Paragraph 11(2) and (3) amend section 227 and section 227ZA of FA 2004 respectively. The changes mean that where an individual is not liable to the annual allowance charge for the pre-alignment tax year, then they are treated as having a default chargeable amount of nil for that period. This ensures that they are entitled to £40,000 of carry forward from the pre-alignment tax year to the post-alignment tax year.