Taxation of Pensions Bill (HC Bill 97)

under paragraph 3(1)(d) or 17(1)(c), as the case may
be, of Schedule 28 to FA 2004 (and any such
regulations are to be treated as having effect for this
purpose), or

(g) 5is a payment to the person under a money purchase
arrangement relating to the person under the scheme that, if
the scheme were a registered pension scheme, would be a
payment to the person of a scheme pension that the person
would for the purposes of Part 4 of FA 2004 be treated as
10having become entitled to at a time on or after 6 April 2015
when fewer than 11 other individuals were entitled to
present payment of a scheme pension under the scheme.

(4A) For the purpose of determining whether the figure specified in
subsection (2) is exceeded, any relevant withdrawal paid in a
15currency other than sterling is to be translated into sterling using the
average exchange rate for the year ending with 31 March in the tax
year in which the relevant withdrawal is paid.

(4B) A relevant withdrawal within subsection (4)(e) is, if it is within
subsection (3), treated for the purposes of this Part as a pension to
20which section 573 applies.”

(4) In subsection (9)—

(a) for the definition of “flexible drawdown arrangement” substitute—

• ““member’s flexi-access drawdown fund” and
  “dependant’s flexi-access drawdown fund” have the
  25same meaning as in Part 4 of FA 2004 (see paragraphs
  8A and 22A of Schedule 28 to FA 2004);”, and

(b) after the definition of “remitted to the United Kingdom” insert—

• ““scheme pension” means a scheme pension within the
  meaning of paragraph 2 of Schedule 28 to FA 2004 or
  30a dependants’ scheme pension within the meaning of
  paragraphs 16 to 16C of that Schedule;”.

(5) The amendments made by this paragraph come into force on 6 April 2015.

84 (1) The version of section 576A which has effect if the year of departure is the
tax year 2012-13 or an earlier tax year (pensions under relevant non-UK
35schemes: temporary non-residents) is amended as follows.

(2) In subsection (1)—

(a) for “non-UK income withdrawal under a relevant non-UK scheme”
substitute “withdrawal paid to a person”,

(b) omit paragraph (a), and

(c) 40at the end insert “, but only if the total amount of the relevant
withdrawals meeting those conditions, and the relevant withdrawals
(as defined by section 579CA(3A)) meeting the conditions in section
579CA(1) for the same set of years of non-residence, exceeds
£100,000”.

(3) 45In subsection (4) for “non-UK income withdrawal falling within subsection
(1)” substitute “withdrawal that meets the conditions in subsection (1)(b)
and (c)”.

(4) After subsection (4) insert—

“(4A) A “relevant withdrawal”, in relation to a person, is an amount paid
under a relevant non-UK scheme that—

(a) is paid to the person in respect of an arrangement relating to
5the person under the scheme and would, if the scheme were
a registered pension scheme, be income withdrawal (within
the meaning of paragraph 7 of Schedule 28 to FA 2004) paid
to the person from the person’s member’s flexi-access
drawdown fund in respect of the arrangement,

(b) 10is paid to the person in respect of an arrangement relating to
the person under the scheme and would, if the scheme were
a registered pension scheme, be dependants’ income
withdrawal (within the meaning of paragraph 21 of Schedule
28 to FA 2004) paid to the person from the person’s
15dependant’s flexi-access drawdown fund in respect of the
arrangement,

(c) is a payment to the person of an annuity purchased using
sums or assets held for the purposes of an arrangement
relating to the person under the scheme and would, if the
20scheme were a registered pension scheme, be a payment of a
short-term annuity (within the meaning of paragraph 6 of
Schedule 28 to FA 2004) purchased using sums or assets out
of the person’s member’s flexi-access drawdown fund in
respect of the arrangement,

(d) 25is a payment to the person of an annuity purchased using
sums or assets held for the purposes of an arrangement
relating to the person under the scheme and would, if the
scheme were a registered pension scheme, be a payment of a
dependants’ short-term annuity (within the meaning of
30paragraph 20 of Schedule 28 to FA 2004) purchased using
sums or assets out of the person’s dependant’s flexi-access
drawdown fund in respect of the arrangement,

(e) is paid before 6 April 2015 to the person in respect of an
arrangement relating to the person under the scheme which
35at the time of the payment was an arrangement to which
section 165(3A) or 167(2A) of FA 2004 (flexible drawdown
arrangements) applied and would, if the scheme were a
registered pension scheme, be income withdrawal or
dependants’ income withdrawal (within the meaning of
40paragraphs 7 and 21 of Schedule 28 to FA 2004),

(f) is a payment to the person of an annuity purchased using
sums or assets held for the purposes of an arrangement
relating to the person under the scheme where—

(i) the payment would, if the scheme were a registered
45pension scheme, be of a lifetime annuity or
dependants’ annuity within paragraph 3(1A) or
17(1ZA), as the case may be, of Schedule 28 to FA
2004, and

(ii) the terms of the contract under which it is paid are
50such that there will or could be decreases in the
amount of the annuity other than decreases which, if
the scheme were a registered pension scheme, would
be decreases from time to time allowed by regulations

under paragraph 3(1)(d) or 17(1)(c), as the case may
be, of Schedule 28 to FA 2004 (and any such
regulations are to be treated as having effect for this
purpose), or

(g) 5is a payment to the person under a money purchase
arrangement relating to the person under the scheme that, if
the scheme were a registered pension scheme, would be a
payment to the person of a scheme pension that the person
would for the purposes of Part 4 of FA 2004 be treated as
10having become entitled to at a time on or after 6 April 2015
when fewer than 11 other individuals were entitled to
present payment of a scheme pension under the scheme.

(4B) For the purpose of determining whether the figure specified at the
end of subsection (1) is exceeded, any relevant withdrawal paid in a
15currency other than sterling is to be translated into sterling using the
average exchange rate for the year ending with 31 March in the tax
year in which the relevant withdrawal is paid.

(4C) A relevant withdrawal within subsection (4A)(e) is, if it meets the
conditions in subsection (1)(b) and (c), treated for the purposes of
20this Part as a pension to which section 573 applies.”

(5) In each of subsections (5) to (7) omit “non-UK income”.

(6) In subsection (8)—

(a) for the definition of “flexible drawdown arrangement” substitute—

• ““member’s flexi-access drawdown fund” and
  25“dependant’s flexi-access drawdown fund” have the
  same meaning as in Part 4 of FA 2004 (see paragraphs
  8A and 22A of Schedule 28 to FA 2004);”,

(b) omit the definition of “relevant non-UK income withdrawal”, and

(c) before the definition of “year of non-residence” insert—

• 30““scheme pension” means a scheme pension within the
  meaning of paragraph 2 of Schedule 28 to FA 2004 or
  a dependants’ scheme pension within the meaning of
  paragraphs 16 to 16C of that Schedule;”.

(7) The amendments made by this paragraph come into force on 6 April 2015.

35Regulations about the effects of certain authorised payments

85 In section 164 of FA 2004 (authorised payments) after subsection (2) insert—

“(3) The Commissioners for Her Majesty’s Revenue and Customs may by
regulations make provision—

(a) having the effect that the making of a prescribed authorised
40payment does not (directly or indirectly) result in an
individual first flexibly accessing pension rights for the
purposes of sections 227B to 227F,

(b) having the effect that the making of a prescribed authorised
payment is not a relevant withdrawal for the purposes of
45section 579CA of ITEPA 2003, and

(c) having the effect that the making of a prescribed payment by
a pension scheme that is not a registered pension scheme,
where the payment would be an authorised payment if the

scheme were a registered pension scheme, is not a relevant
withdrawal for the purposes of section 576A of ITEPA 2003.

(4) In subsection (3)—

• “authorised payment” means a payment specified in subsection
  5(1), and

• “prescribed” means prescribed in regulations under subsection
  (3).”

Part 6 Provision of information

86 10The Registered Pension Schemes (Provision of Information) Regulations
2006 (S.I. 2006/567S.I. 2006/567) are amended as follows.

87 After regulation 14 insert—

“14ZA Information provided to member by scheme administrator where it
appears member may be first flexibly accessing pension rights

(1) 15If a relevant event (see paragraph (2)) occurs in relation to a member
of a registered pension scheme, the scheme administrator—

(a) must provide the member with a statement—

(i) stating the date of the relevant event, and

(ii) explaining the matters specified in paragraph (3), and

(b) 20must do so before the end of the 31 days beginning with the
date of the relevant event,

but this is subject to paragraph (4).

(2) For the purposes of this regulation—

(a) if—

(i) 25the member has a member’s flexi-access drawdown
fund in respect of an arrangement under the scheme,
and

(ii) the fund came into being as a result of sums or assets
being designated on or after 6 April 2015 as available
30for the payment of drawdown pension, or as a result
of the operation of paragraph 8D(2) of Schedule 28,

a relevant event occurs when a qualifying payment is made
to the member from the fund,

(b) if—

(i) 35the member has a member’s drawdown pension fund
in respect of an arrangement under the scheme, and

(ii) the sums and assets that make up the fund become
newly-designated funds by the operation of
paragraph 8B of Schedule 28,

40a relevant event occurs when a qualifying payment is made
to the member from the member’s flexi-access drawdown
fund in respect of the arrangement,

(c) a relevant event occurs when an uncrystallised funds pension
lump sum is paid to the member by the scheme, and

(d) 45a relevant event occurs when a stand-alone lump sum is paid
on or after 6 April 2015 to the member by the scheme in

circumstances where article 25B(2) of the Taxation of Pension
Schemes (Transitional Provisions) Order 2006 applies.

(3) The matters mentioned in paragraph (1)(a)(ii) are—

(a) that a relevant event has occurred in relation to the member
5and that, as a result, the member has flexibly accessed the
member’s pension rights (although may have first done so
previously),

(b) that if in any tax year the total of the pension inputs to money
purchase arrangements, and certain hybrid arrangements,
10relating to the member exceeds £10,000—

(i) there will be an annual allowance tax charge on the
excess, and

(ii) the annual allowance for pension inputs to other
arrangements relating to the member will be £10,000
15less than it would otherwise be,

(c) that the member must, before the end of the 31 days
beginning with the date the member receives the statement,
pass on the information specified in paragraph (a) and the
date of the relevant event to the scheme administrator of each
20other registered pension scheme of which the member is a
member at any time in the period beginning with the date of
the relevant event and ending with the date of receipt of the
statement, and

(d) that, where the member becomes a member of another
25registered pension scheme after the date of receipt of the
statement and otherwise than as a result of a recognised
transfer, the member must pass on the information specified
in paragraph (a) and the date of the relevant event to the
scheme administrator of that other scheme before the end of
30the 31 days beginning with the date of becoming a member of
that other scheme.

(4) The scheme administrator is not required to comply with paragraph
(1) in relation to the relevant event if—

(a) the scheme administrator has complied with paragraph (1) in
35respect of an earlier relevant event, or

(b) the scheme administrator is, at any time before complying
with paragraph (1) in relation to the relevant event,
informed—

(i) by the member, or

(ii) 40by the scheme administrator of another registered
pension scheme,

that the member flexibly accessed pension rights at a time
before the relevant event occurred.

(5) In this regulation, a reference to a qualifying payment from a fund is
45a reference to—

(a) payment of income withdrawal from the fund, or

(b) payment of a short-term annuity purchased using sums or
assets out of the fund,

but does not include payment at a time when the whole of the fund
50represents rights attributable to a disqualifying pension credit.

(6) In paragraph (5) “disqualifying pension credit” is to be read in
accordance with paragraph 2(3) and (4) of Schedule 29.

14ZB Passing-on by member of information under regulation 14ZA

(1) Paragraphs (2) and (3) apply if an individual receives a statement
5under regulation 14ZA from the scheme administrator of a
registered pension scheme, but this is subject to paragraphs (4) and
(5).

(2) The individual must before the end of the 31 days beginning with the
date of receipt—

(a) 10pass on a copy of the statement, or

(b) otherwise give notice of—

(i) receipt of the statement, and

(ii) the date of the relevant event concerned,

to the scheme administrator of each other registered pension scheme
15of which the individual is a member at any time in the period
beginning with the date of the relevant event and ending with the
date of receipt of the statement.

(3) Where the individual becomes a member of another registered
pension scheme after the date of receipt of the statement, the
20individual must before the end of the 31 days beginning with the
date the individual becomes a member of that other scheme—

(a) pass on a copy of the statement, or

(b) otherwise give notice of—

(i) receipt of the statement, and

(ii) 25the date of the relevant event concerned,

to the scheme administrator of that other scheme.

(4) Paragraph (3) does not apply in connection with the individual
becoming a member of any particular scheme if the individual
becomes a member of that scheme as a result of a recognised transfer.

(5) 30Paragraph (2) or (3), as the case may be, does not require the
information concerned to be provided to the scheme administrator of
a particular scheme if the individual has complied with regulation
14ZD(2) or (3) or 14ZE(2) or (3) in relation to the scheme
administrator of that scheme.

14ZC 35 Information between scheme administrators on recognised transfers

(1) Paragraph (2) applies if—

(a) in connection with a member of a registered pension scheme
(“the transferring scheme”), there is a recognised transfer
from the transferring scheme to another registered pension
40scheme (“the recipient scheme”), and

(b) the scheme administrator of the transferring scheme has
reason to believe that the member first flexibly accessed
pension rights before the transfer.

(2) The scheme administrator of the transferring scheme must provide
45the scheme administrator of the recipient scheme with a statement—

(a) stating that the scheme administrator of the transferring
scheme has reason to believe that the member first flexibly
accessed pension rights before the transfer, and

(b) specifying the date the scheme administrator of the
5transferring scheme understands to be the date when the
member first flexibly accessed pension rights.

(3) The requirement under paragraph (2) is to be complied with
before—

(a) the end of the 31 days beginning with the date of the transfer,
10or

(b) if later, the end of the 31 days beginning with the date when
the scheme administrator of the transferring scheme first has
reason for the belief mentioned in paragraph (1)(b).

(4) References in this regulation to an individual first flexibly accessing
15pension rights are to be read in accordance with section 227G.

14ZD Individual to whom flexible drawdown arrangements applied before
6 April 2015 must tell other schemes if active or contributing etc

(1) Paragraphs (2) and (3) apply if—

(a) at any time before 6 April 2015, section 165(3A) applied to an
20arrangement relating to an individual under a registered
pension scheme (the “flexed” registered pension scheme),
and

(b) on or after 6 April 2015—

(i) the individual is an active member of the flexed or
25any other registered pension scheme as a result of
there presently being arrangements for the accrual of
benefits to or in respect of the individual under a cash
balance arrangement or hybrid arrangement, or

(ii) a relevant contribution is paid (see paragraph (8)).

(2) 30The individual must, before the end of the period of 31 days
beginning (as the case may be) with—

(a) the first day on or after 6 April 2015 when the condition in
paragraph (1)(b)(i) is met in relation to the individual, or

(b) the date of payment of the first relevant contribution paid on
35or after 6 April 2015,

provide the information specified in paragraph (4) to the scheme
administrator of each registered pension scheme of which the
individual is a member on the first day of that period; but this is
subject to paragraphs (5) and (7).

(3) 40Where the individual becomes a member of another registered
pension scheme after the first day of that period, the individual must,
before the end of the 31 days beginning with the date the individual
becomes a member of that other scheme, provide the information
specified in paragraph (4) to the scheme administrator of that other
45scheme; but this is subject to paragraphs (6) and (7).

(4) The information is that, as a result of section 227G(3), the individual
is treated for the purposes of sections 227B to 227F as having first
flexibly accessed pension rights at the start of 6 April 2015.

(5) Paragraph (2) does not require that information to be provided to the
scheme administrator of a particular scheme if, immediately before 6
April 2015, section 165(3A) applied to an arrangement relating to the
individual under that scheme.

(6) 5Paragraph (3) does not require that information to be provided to the
scheme administrator of a particular scheme if the individual
becomes a member of that scheme as a result of a recognised transfer
made to the scheme.

(7) Paragraph (2) or (3), as the case may be, does not require that
10information to be provided to the scheme administrator of a
particular scheme if the individual has complied with regulation
14ZB(2) or (3) or 14ZE(2) or (3) in relation to the scheme
administrator of that scheme.

(8) For the purposes of this regulation, a relevant contribution is paid
15if—

(a) a relievable pension contribution is paid by or on behalf of
the individual under a non-cash-balance money purchase
arrangement relating to the individual under the flexed or
any other registered pension scheme,

(b) 20a contribution is paid in respect of the individual by an
employer of the individual under a non-cash-balance money
purchase arrangement relating to the individual under the
flexed or any other registered pension scheme, or

(c) a contribution—

(i) 25paid under the flexed or any other registered pension
scheme by an employer of the individual, and

(ii) paid otherwise than in respect of any individual,

becomes held for the purposes of a non-cash-balance money
purchase arrangement relating to the individual under the
30scheme under which the contribution was paid;

and in this paragraph “non-cash-balance money purchase
arrangement” means a money purchase arrangement other than a
cash balance arrangement.

14ZE Member to inform other schemes if, under paragraph 8C of Schedule
3528, drawdown pension fund becomes flexi-access drawdown fund

(1) Paragraphs (2) and (3) apply if, under paragraph 8C of Schedule 28,
the drawdown pension fund in respect of an arrangement relating to
an individual under a registered pension scheme becomes the
individual’s flexi-access drawdown fund in respect of the
40arrangement, but this is subject to paragraphs (4) and (5).

(2) The individual must, before the end of the 31 days beginning with
the conversion date, inform the scheme administrator of each other
registered pension scheme of which the individual is a member on
the conversion date—

(a) 45of the conversion, and

(b) of the conversion date.

(3) Where the individual becomes a member of another registered
pension scheme after the conversion date, the individual must,
before the end of the 31 days beginning with the date the individual

becomes a member of that other scheme, inform the scheme
administrator of that other scheme—

(a) of the conversion, and

(b) of the conversion date.

(4) 5Paragraph (3) does not apply in connection with the individual
becoming a member of any particular scheme if the individual
becomes a member of that scheme as a result of a recognised transfer.

(5) Paragraph (2) or (3), as the case may be, does not require the
information concerned to be provided to the scheme administrator of
10a particular scheme if the individual has complied with regulation
14ZB(2) or (3) or 14ZD(2) or (3) in relation to the scheme
administrator of that scheme.”

88 (1) Regulation 14A (annual allowance: annual provision of information by
scheme administrator to member) is amended as follows.

(2) 15In paragraph (1) (duty to provide annual pension savings statement)—

(a) in paragraph (b) at the beginning insert “either—

(i)”,

(b) in paragraph (b) at the end insert “or

(ii) both of the conditions in paragraph (9) are
20met,”, and

(c) after “containing the information” insert “specified in paragraph (10)
if the condition in sub-paragraph (b)(ii) is met but otherwise
containing the information”.

(3) In the first sentence of paragraph (8) for “(1)” substitute “(1)(a)”.

(4) 25After paragraph (8) insert—

“(9) The conditions referred to in paragraph (1)(b)(ii) are as follows.

Condition D

The scheme administrator has reason to believe that the member has
first flexibly accessed pension rights for the purposes of sections
30227B to 227F.

Condition E

That the overall total of the following amounts is more than
£10,000—

• for each money purchase arrangement relating to the
  35member under the scheme, the pension input amount for the
  relevant pension input period in respect of the arrangement,
  and

• for each hybrid arrangement relating to the member under
  the scheme, the greater of such of input amounts A and B
  40mentioned in section 237 as are, for the purposes of section
  237, relevant input amounts for the relevant pension input
  period in the case of the arrangement.

(10) The information is—

(a) the total of—

(i) 45the pension input amounts for the relevant pension
input period in respect of each money purchase

arrangement relating to the member under the
scheme, and

(ii) the pension input amounts for the relevant pension
input period in respect of each hybrid arrangement
5under the scheme—

(a) that relates to the member, and

(b) for which the pension input amount for the
relevant pension input period is input amount
A or B mentioned in section 237,

(b) 10the total of—

(i) the pension input amounts for the relevant pension
input period in respect of each defined benefits
arrangements relating to the member under the
scheme, and

(ii) 15the pension input amounts for the relevant pension
input period in respect of each hybrid arrangement
under the scheme—

(a) that relates to the member,

(b) for which the pension input amount for the
20relevant pension input period is input amount
C mentioned in section 237, and

(c) that is made before 14 October 2014 and has
not become a hybrid arrangement (whether or
not for the first time) on or after that day,

(c) 25for each hybrid arrangement relating to the member under
the scheme—

(i) that is made on or after 14 October 2014 or has become
a hybrid arrangement (whether or not for the first
time) on or after that day, and

(ii) 30for which the pension input amount for the relevant
pension input period is input amount C mentioned in
section 237,

which of input amounts A, B and C mentioned in section 237
is a relevant input amount for the purposes of section 237 for
35the relevant pension input period in the case of the
arrangement, and the amount of each of those input amounts
that in the case of the arrangement is a relevant input amount
for those purposes for that period,

(d) the unadjusted alternative annual allowance for the relevant
40tax year, and the fact the member’s money-purchase input
sub-total for the relevant tax year will be tested against a
£10,000 allowance,

(e) the unadjusted alternative annual allowance for each of the
three preceding tax years, and the fact that the member’s
45money-purchase input sub-total for each of those preceding
years will be tested against a £10,000 allowance or, if any of
those preceding years is earlier than the tax year 2015-16, the
annual allowance for each such earlier year, and

(f) for each of those three preceding years, the information given
50in the pension savings statement for the pension input period
ending in that year under, as the case may be, sub-
paragraphs (a) to (c) or paragraph (2)(a).