(1) Schedule 34 to the Finance Act 2004 (application of certain charges to non-UK pension schemes) is amended as follows.
(2) In paragraph 10 (pension input amount for cash balance and defined benefits arrangements), for sub-paragraph (2) substitute—
“(2) The appropriate fraction is—
where—
EI is the total amount of employment income of the individual from any relevant employment or employments for the tax year, excluding any such income which is exempt income (within the meaning of section 8 of ITEPA 2003),
TE is so much of EI as constitutes taxable earnings from any such employment (within the meaning of section 10(2) of that Act), and
TSI is so much of EI as constitutes taxable specific income from any such employment (within the meaning of section 10(3) to (5) of that Act).”
(3) In paragraph 11 (pension input amount for other money purchase arrangements), for subparagraph (2) substitute—
“(2) The appropriate fraction is—
where—
EI is the total amount of employment income of the individual from any employment or employments with the employer for the tax year, excluding any such income which is exempt income (within the meaning of section 8 of ITEPA 2003),
TE is so much of EI as constitutes taxable earnings from any such employment (within the meaning of section 10(2) of that Act), and
TSI is so much of EI as constitutes taxable specific income from any such employment (within the meaning of section 10(3) to (5) of that Act).”
(4) The amendments made by this Resolution have effect for the tax year 2014-2015 and subsequent tax years.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.