Finance Bill (HC Bill 1)

with the application (including any declaration
accompanying it),

(e) the scheme administrator has deliberately obstructed an
officer of Revenue and Customs in the course of an inspection
5under section 153B carried out in connection with the
application (including any declaration accompanying it)
where the inspection has been approved by the tribunal,

(f) the pension scheme has not been established, or is not being
maintained, wholly or mainly for the purpose of making
10payments falling within section 164(1)(a) or (b) (authorised
payments of pensions and lump sums), or

(g) the person who is, or any of the persons who are, the scheme
administrator is not a fit and proper person to be, as the case
may be—

(i) 15the scheme administrator, or

(ii) one of the persons who are the scheme
administrator.”

(4) After subsection (5) insert—

“(5A) The information falling within this subsection is any information—

(a) 20contained in the application, or

(b) otherwise provided to an officer of Revenue and Customs by
the scheme administrator (whether under section 153A or
otherwise) in connection with the application (including any
declaration accompanying it).

(5B) 25The documents falling within this subsection are any documents
produced to an officer of Revenue and Customs by the scheme
administrator (whether under section 153A or otherwise) in
connection with the application (including any declaration
accompanying it).

(5C) 30The reference in subsection (5)(d) to the scheme administrator
having failed to comply with an information notice under section
153A includes a case where the scheme administrator has concealed,
destroyed or otherwise disposed of, or has arranged for the
concealment, destruction or disposal of, a document in breach of
35paragraph 42 or 43 of Schedule 36 to the Finance Act 2008 as applied
by section 153A(3).”

3 After section 153 insert—

“153A Power to require information or documents in relation to applications
for registration

(1) 40This section applies where an application for a pension scheme to be
registered is made.

(2) An officer of Revenue and Customs may by notice (an “information
notice”) require the scheme administrator or any other person—

(a) to provide the officer with any information, or

(b) 45to produce a document to the officer,

if the officer reasonably requires the information or document in
connection with the application (including any declaration
accompanying it).

(3) Paragraphs 6(2), 7, 8, 15, 16, 18 to 20, 23 to 27, 42 and 43 of Schedule
36 to the Finance Act 2008 (information notices etc) apply in relation
to information notices under this section as they apply in relation to
information notices under that Schedule.

(4) 5Where an information notice under this section is given to a person
other than the scheme administrator, an officer of Revenue and
Customs must give a copy of the notice to the scheme administrator.

(5) A person, other than the scheme administrator, who is given an
information notice under this section may appeal against the notice
10or any requirement in the notice.

(6) Paragraph 32 of Schedule 36 to the Finance Act 2008 (procedures for
appeals against information notices) applies for the purposes of an
appeal under subsection (5) as it applies for the purposes of an
appeal under Part 5 of that Schedule.

153B 15 Power to inspect documents in relation to applications for registration

(1) This section applies where an application for a pension scheme to be
registered is made.

(2) An officer of Revenue and Customs may—

(a) enter any business premises of the scheme administrator or
20any other person, and

(b) inspect documents that are on the premises,

if the officer reasonably requires to inspect the documents in
connection with the application (including any declaration
accompanying it).

(3) 25In subsection (2)(a) “business premises” has the meaning given by
paragraph 10(3) of Schedule 36 to the Finance Act 2008 (power to
inspect business premises etc).

(4) Paragraphs 10(2), 12, 15 and 16 of Schedule 36 to the Finance Act 2008
apply in relation to the power of inspection conferred by this section
30as they apply in relation to the power of inspection conferred by
paragraph 10 of that Schedule.

(5) An officer of Revenue and Customs may not inspect a document
under this section if or to the extent that, by virtue of a provision of
Part 4 of Schedule 36 to the Finance Act 2008 (restrictions on powers)
35applied by section 153A(3), an information notice under section 153A
given at the time of the inspection to the occupier of the premises
could not require the occupier to produce the document.

(6) An officer of Revenue and Customs may ask the tribunal to approve
an inspection under this section.

(7) 40Paragraph 13(1A), (2) and (3) of Schedule 36 to the Finance Act 2008
(approval of tribunal for inspections) applies in relation to an
application under subsection (6) as it applies in relation to an
application under paragraph 13 of that Schedule in relation to an
inspection under paragraph 10 of that Schedule.

153C Penalties for failure to comply with information notices etc

(1) This section applies where a person other than the scheme
administrator—

(a) fails to comply with an information notice under section
5153A, or

(b) deliberately obstructs an officer of Revenue and Customs in
the course of an inspection under section 153B that has been
approved by the tribunal.

(2) The reference in subsection (1)(a) to a person who fails to comply
10with an information notice includes a person who conceals, destroys
or otherwise disposes of, or arranges for the concealment,
destruction or disposal of, a document in breach of paragraph 42 or
43 of Schedule 36 to the Finance Act 2008 as applied by section
153A(3).

(3) 15Paragraphs 39(2), 40 and 44 to 49 of Schedule 36 to the Finance Act
2008 (penalties for failure to comply with information notice etc)
apply in relation to the failure or obstruction as they apply in relation
to a failure or obstruction mentioned in paragraph 39(1) of that
Schedule.

153D 20 Penalties for inaccurate information in applications

(1) This section applies where—

(a) an application under section 153 contains information which
is inaccurate,

(b) the inaccuracy is material, and

(c) 25condition A, B or C is met.

(2) Condition A is that the inaccuracy is careless or deliberate.

(3) An inaccuracy is careless if it is due to a failure by the scheme
administrator to take reasonable care.

(4) Condition B is that the scheme administrator knows of the
30inaccuracy at the time the application is made but does not inform an
officer of Revenue and Customs at that time.

(5) Condition C is that the scheme administrator—

(a) discovers the inaccuracy some time later, and

(b) fails to take reasonable steps to inform an officer of Revenue
35and Customs.

(6) The scheme administrator is liable to a penalty not exceeding the
maximum penalty for which the scheme administrator could have
been liable under paragraph 40A of Schedule 36 to the Finance Act
2008 (penalties for inaccurate information and documents) had that
40paragraph applied in relation to the inaccuracy.

(7) Where the information contains more than one material inaccuracy,
a penalty is payable for each inaccuracy.

(8) Paragraphs 46 to 49 of Schedule 36 to the Finance Act 2008
(assessment of penalties etc) apply in relation to a penalty under this
45section as they apply in relation to a penalty under paragraph 40A of
that Schedule.

153E Penalties for inaccurate information or documents provided under
information notice

(1) This section applies where—

(a) in complying with an information notice under section 153A,
5a person provides inaccurate information or produces a
document that contains an inaccuracy, and

(b) the inaccuracy is material.

(2) Paragraphs 40A and 46 to 49 of Schedule 36 to the Finance Act 2008
(penalties for inaccurate information and documents) apply in
10relation to the inaccuracy as they apply in relation to an inaccuracy
connected with an information notice under that Schedule.

153F Penalties for false declarations

(1) This section applies where—

(a) a declaration accompanying an application under section 153
15is false, and

(b) at least one of conditions A to C in section 153D is met
(reading references to an inaccuracy as references to a
falsehood and references to the scheme administrator as
references to the person who made the declaration).

(2) 20The person who made the declaration is liable to a penalty not
exceeding the maximum penalty for which the person could have
been liable under paragraph 40A of Schedule 36 to the Finance Act
2008 (penalties for inaccurate information and documents) had that
paragraph applied in relation to the falsehood.

(3) 25Where the declaration contains more than one falsehood, a penalty is
payable in relation to each falsehood.

(4) Paragraphs 46 to 49 of Schedule 36 to the Finance Act 2008
(assessment of penalties etc) apply in relation to a penalty under this
section as they apply in relation to a penalty under paragraph 40A of
30that Schedule.”

4 After section 156 insert—

“156A Cases where application for registration not decided within 6 months

(1) This section applies where—

(a) an application for a pension scheme to be registered is made,
35but

(b) the scheme administrator is not notified under section 153(6)
within the period of 6 months after the day on which the
application is made.

(2) The scheme administrator may appeal to the tribunal as if, at the end
40of that period of 6 months, the scheme administrator had been
notified under section 153(6) of a decision not to register the scheme;
and section 156(5) to (8) applies accordingly.”

5 (1) The amendments made by paragraphs 2 to 4 are treated as having come into
force on 20 March 2014 and have effect in relation to applications made on
45or after that date.

(2) In relation to an application made before 1 September 2014, section 153(5) of
FA 2004 (as amended by paragraph 2(3)) has effect with the omission of
paragraph (g).

De-registration of pension schemes

6 (1) 5Section 158 (grounds for de-registration) is amended as follows.

(2) In subsection (1)—

(a) before paragraph (a) insert—

“(za) that the pension scheme has not been established, or
is not being maintained, wholly or mainly for the
10purpose of making payments falling within section
164(1)(a) or (b) (authorised payments of pensions and
lump sums),”,

(b) in paragraph (d) for “incorrect” substitute “inaccurate”,

(c) after paragraph (d) insert—

“(da) 15that the scheme administrator fails to produce any
document required to be produced to an officer of
Revenue and Customs by virtue of this Part or Part 1
of Schedule 36 to the Finance Act 2008,

(db) that any document produced to an officer of Revenue
20and Customs by the scheme administrator contains a
material inaccuracy in relation to which at least one of
conditions A to C in subsections (7) to (10) is met,”,
and”

(d) for paragraph (e) substitute—

“(e) 25that any declaration accompanying the application to
register the pension scheme, or otherwise made to an
officer of Revenue and Customs in connection with
the pension scheme, is false in a material particular,

(ea) that the scheme administrator has deliberately
30obstructed an officer of Revenue and Customs in the
course of an inspection under Part 2 of Schedule 36 to
the Finance Act 2008 that has been approved by the
tribunal, or”.

(3) In subsection (1) (as amended by sub-paragraph (2) above)—

(a) 35after paragraph (za) insert—

“(zb) that the person who is, or any of the persons who are,
the scheme administrator is not a fit and proper
person to be, as the case may be—

(i) the scheme administrator, or

(ii) 40one of the persons who are the scheme
administrator,”, and

(b) in paragraph (ea) after “under” insert “section 159B or”.

(4) After subsection (5) insert—

“(6) Subsections (7) to (10) apply for the purposes of subsection (1)(db).

(7) 45Condition A is that the inaccuracy is careless or deliberate.

(8) An inaccuracy is careless if it is due to a failure by the scheme
administrator to take reasonable care.

(9) Condition B is that the scheme administrator knows of the
inaccuracy at the time the document is produced to an officer of
Revenue and Customs but does not inform such an officer at that
time.

(10) 5Condition C is that the scheme administrator—

(a) discovers the inaccuracy some time later, and

(b) fails to take reasonable steps to inform an officer of Revenue
and Customs.”

7 In Chapter 2, after section 159 insert—

“159A 10 Power to require information or documents for purpose of
considering if scheme administrator is fit and proper

(1) An officer of Revenue and Customs may by notice (an “information
notice”) require the scheme administrator of a registered pension
scheme or any other person—

(a) 15to provide the officer with any information, or

(b) to produce a document to the officer,

if the officer reasonably requires the information or document for the
purpose of considering whether the person who is, or any of the
persons who are, the scheme administrator is a fit and proper person
20to be the scheme administrator or one of those persons (as the case
may be).

(2) Paragraphs 6(2), 7, 8, 15, 16, 18 to 20, 23 to 27, 42 and 43 of Schedule
36 to the Finance Act 2008 (information notices etc) apply in relation
to information notices under this section as they apply in relation to
25information notices under that Schedule.

(3) Where an information notice under this section is given to a person
other than the scheme administrator, an officer of Revenue and
Customs must give a copy of the notice to the scheme administrator.

(4) A person who is given an information notice under this section may
30appeal against the notice or any requirement in the notice.

(5) Paragraph 32 of Schedule 36 to the Finance Act 2008 (procedures for
appeals against information notices) applies for the purposes of an
appeal under subsection (4) as it applies for the purposes of an
appeal under Part 5 of that Schedule.

159B 35 Power to inspect documents for purpose of considering if scheme
administrator is fit and proper

(1) An officer of Revenue and Customs may—

(a) enter any business premises of the scheme administrator of a
registered pension scheme or of any other person, and

(b) 40inspect documents that are on the premises,

if the officer reasonably requires to inspect the documents for the
purpose of considering whether the person who is, or any of the
persons who are, the scheme administrator is a fit and proper person
to be the scheme administrator or one of those persons (as the case
45may be).

(2) In subsection (1)(a) “business premises” has the meaning given by
paragraph 10(3) of Schedule 36 to the Finance Act 2008 (power to
inspect business premises etc).

(3) Paragraphs 10(2), 12, 15 and 16 of Schedule 36 to the Finance Act 2008
5apply in relation to the power of inspection conferred by this section
as they apply in relation to the power of inspection conferred by
paragraph 10 of that Schedule.

(4) An officer of Revenue and Customs may not inspect a document
under this section if or to the extent that, by virtue of a provision of
10Part 4 of Schedule 36 to the Finance Act 2008 (restrictions on powers)
applied by section 159A(2), an information notice under section 159A
given at the time of the inspection to the occupier of the premises
could not require the occupier to produce the document.

(5) An officer of Revenue and Customs may ask the tribunal to approve
15an inspection under this section.

(6) Paragraph 13(1A), (2) and (3) of Schedule 36 to the Finance Act 2008
(approval of tribunal for inspections) applies in relation to an
application under subsection (5) as it applies in relation to an
application under paragraph 13 of that Schedule in relation to an
20inspection under paragraph 10 of that Schedule.

159C Penalties for failure to comply with information notices etc

(1) This section applies where a person—

(a) fails to comply with an information notice under section
159A, or

(b) 25deliberately obstructs an officer of Revenue and Customs in
the course of an inspection under section 159B that has been
approved by the tribunal.

(2) The reference in subsection (1)(a) to a person who fails to comply
with an information notice includes a person who conceals, destroys
30or otherwise disposes of, or arranges for the concealment,
destruction or disposal of, a document in breach of paragraph 42 or
43 of Schedule 36 to the Finance Act 2008 as applied by section
159A(2).

(3) Paragraphs 39(2), 40 and 44 to 49 of Schedule 36 to the Finance Act
352008 (penalties for failure to comply with information notice etc)
apply in relation to the failure or obstruction as they apply in relation
to a failure or obstruction mentioned in paragraph 39(1) of that
Schedule.

159D Penalties for inaccurate information or documents provided under
40information notice

(1) This section applies where—

(a) in complying with an information notice under section 159A,
a person provides inaccurate information or produces a
document that contains an inaccuracy, and

(b) 45the inaccuracy is material.

(2) Paragraphs 40A and 46 to 49 of Schedule 36 to the Finance Act 2008
(penalties for inaccurate information and documents) apply in

relation to the inaccuracy as they apply in relation to an inaccuracy
connected with an information notice under that Schedule.”

8 (1) The amendments made by paragraphs 6 and 7 have effect in relation to
pension schemes whenever registered (including schemes registered by
5virtue of paragraph 1 of Schedule 36 to FA 2004 (deemed registration of
existing schemes)).

(2) The amendments made by paragraph 6(2) and (4) are treated as having come
into force on 20 March 2014.

(3) The amendments made by paragraphs 6(3) and 7 come into force on 1
10September 2014 or, if later, the day after the day on which this Act is passed.

Declarations required from person who is to be a scheme administrator

9 (1) In section 270 (meaning of “scheme administrator”) in subsection (2)—

(a) after paragraph (a) omit “and”, and

(b) after paragraph (b) insert “, and

(c) 15has made to an officer of Revenue and Customs any
other declarations which are reasonably required by
Her Majesty’s Revenue and Customs”.

(2) The amendments made by this paragraph have effect in relation to
appointments on or after 1 September 2014.

20Payments by registered pension schemes: surrender

10 (1) Section 172A (payments by registered pension schemes: surrender) is
amended as follows.

(2) In subsection (5) omit paragraph (d).

(3) After subsection (5) insert—

“(5A) 25Subsection (5)(b) applies only if the entitlement is held (or is to be
held) by the dependant under an arrangement under the pension
scheme relating to the member or dependant.”

11 In section 207 (authorised surplus payments charge) after subsection (6)
insert—

“(6A) 30Subsection (1) does not apply to an authorised surplus payment to
the extent that the payment is funded (directly or indirectly) by a
surrender of (or an agreement to surrender) benefits or rights which
results in the registered pension scheme being treated as making an
unauthorised payment under section 172A.

(6B) 35Terms used in subsection (6A) which are defined in section 172A
have the same meaning as they have in that section.”

12 The amendments made by paragraphs 10 and 11 have effect in relation to
surrenders (or agreements to surrender) made on or after 20 March 2014.

Orders for money etc to be restored to pension schemes

13 (1) 40Section 188 (relief for members’ contributions) is amended as follows.

(2) In subsection (2) after “(3)” insert “or (3A)”.

(3) After subsection (3) insert—

“(3A) This subsection applies to a contribution if the contribution results
from the transfer of property or money, or the payment of a sum,
towards the pension scheme pursuant to a relevant order in a case
5where—

(a) section 266A (members’ liability in respect of unauthorised
member payments) applies, and

(b) relief is claimed under that section in respect of the liability
mentioned in subsection (1)(a) of that section.

(3B) 10In the case of a contribution which is greater than UMP (see section
266A(5)), subsection (3A) does not apply to the contribution so far as
it is greater than UMP.

(3C) In subsection (3A) “relevant order” means an order under any of the
following—

(a) 15section 16(1), 19(4) or 21(2)(a) of the Pensions Act 2004 (orders
for money etc to be restored to pension schemes), or

(b) Article 12(1), 15(4) or 17(2)(a) of the Pensions (Northern
Ireland) Order 2005 (corresponding provision for Northern
Ireland).”

14 (1) 20Section 266A (member’s liability) is amended as follows.

(2) In subsection (1)(b) for the words from “an order” to “Regulator)” substitute
“a relevant order”.

(3) In subsection (5), in the definition of “ASO”—

(a) before the first “order” insert “relevant”, and

(b) 25for the words from the second “order” to “2005” substitute “relevant
order”.

(4) After subsection (6) insert—

“(6A) In this section “relevant order” means an order under any of the
following—

(a) 30section 16(1), 19(4) or 21(2)(a) of the Pensions Act 2004 (orders
for money etc to be restored to pension schemes), or

(b) Article 12(1), 15(4) or 17(2)(a) of the Pensions (Northern
Ireland) Order 2005 (corresponding provision for Northern
Ireland).”

15 (1) 35Section 266B (scheme’s liability) is amended as follows.

(2) In subsection (1)(b) for the words from “an order” to “Regulator)” substitute
“a relevant order”.

(3) In subsection (3), in the definition of “ASO”—

(a) before the first “order” insert “relevant”, and

(b) 40for the words from the second “order” to “2005” substitute “relevant
order”.

(4) After subsection (4) insert—

“(5) In this section “relevant order” means an order under any of the
following—

(a) section 16(1), 19(4) or 21(2)(a) of the Pensions Act 2004 (orders
for money etc to be restored to pension schemes), or

(b) Article 12(1), 15(4) or 17(2)(a) of the Pensions (Northern
Ireland) Order 2005 (corresponding provision for Northern
5Ireland).”

16 The amendments made by paragraphs 13 to 15 have effect in relation to
orders made on or after 1 September 2014.

Liabilities of trustees appointed by Pensions Regulator etc

17 In section 255 (assessments under Part) in subsection (1) after paragraph (e)
10insert—

“(ea) liability under section 272C (former scheme administrator to
retain liability in cases involving independent trustees etc),”.

18 In section 272 (trustees etc liable as scheme administrator) in subsection (4)
after “applying in relation to the pension scheme” insert “or by reason of
15section 272C(7) applying in relation to a liability”.

19 After section 272 insert—

“272A Liabilities of independent trustee

(1) This section applies in relation to a person (“P”) who is an
independent trustee of a registered pension scheme.

(2) 20For the purposes of this section and section 272B an “independent
trustee” is a trustee of a pension scheme—

(a) who is appointed by, or otherwise pursuant to, an order
made—

(i) by the Pensions Regulator under section 7 of the
25Pensions Act 1995 or Article 7 of the Pensions
(Northern Ireland) Order 1995 (appointment of
trustees by the Pensions Regulator), or

(ii) by a court on an application made by the Pensions
Regulator, and

(b) 30who is not a trustee of the pension scheme at any time
before—

(i) the day on which the trustee’s appointment as
mentioned in paragraph (a) takes effect, or

(ii) if the trustee is appointed as mentioned in paragraph
35(a) on more than one occasion, the day on which the
first appointment takes effect.

(3) In this section “the relevant day” means—

(a) the day on which P’s appointment as trustee of the pension
scheme as mentioned in subsection (2)(a) takes effect, or

(b) 40if P is appointed as trustee of the pension scheme as
mentioned in subsection (2)(a) on more than one occasion,
the day on which P’s first appointment takes effect.

(4) If P is, or is one of the persons who are, the scheme administrator, P
does not assume any liability falling within subsection (7) which P
45would otherwise assume (including by reason of section 272C(3) or
(4)).