Taxation of Pensions Bill (HC Bill 97)

(11) If, in the case of a hybrid arrangement, input amount C mentioned in
section 237—

(a) is a relevant input amount for the purposes of section 237 for
the relevant pension input period, and

(b) 5is equal to—

(i) input amount A or B mentioned in section 237 if that
is the only other relevant input amount for the
purposes of section 237 for that period, or

(ii) the greater of input amounts A and B mentioned in
10section 237 if both are relevant input amounts for the
purposes of section 237 for that period,

the pension input amount in respect of the arrangement for that
period is, for the purposes of paragraph (10), treated as being input
amount A or B or, as the case may be, the greater of input amounts A
15and B (and, in either case, not input amount C).

(12) In paragraph (10)(d) and (e) “the unadjusted alternative annual
allowance”, in relation to a tax year, means the amount that would
be the member’s alternative annual allowance under section 227B(2)
for that tax year if any increases under section 228A(2) (carry
20forward of unused allowance from preceding 3 years) are ignored.”

89 In regulation 14B(1) (information mentioned in regulation 14A to be
supplied by scheme administrator at member’s request where no automatic
duty to supply it) for “regulations 14A(2) or (7)” substitute “regulation
14A(2), (7) or (10)”.

90 (1) 25The table in regulation 3(1) (provision of event reports by scheme
administrators to HM Revenue and Customs) is amended as follows.

(2) In column 1 of the entry for reportable event 22 (report where scheme
administrator provides pension savings statement under regulation 14A(1))
after “14A(1)” insert “containing the information specified in regulation
3014A(2)”.

(3) After the entry for reportable event 22 insert—

91 The amendments made by this Part of the Schedule—

(a) 40come into force on 6 April 2015, and

(b) are to be treated as having been made by the Commissioners for Her
Majesty’s Revenue and Customs under such of the powers cited in
the instrument containing the Regulations as are applicable.

Part 7 Overseas pensions

92 In section 169(4) of FA 2004 (regulations about the provision of information
by scheme managers of schemes that are or have been qualifying recognised
5overseas pension schemes) before the “and” at the end of paragraph (b)
insert—

“(ba) give information of a prescribed description to the scheme
manager of a QROPS or former QROPS,

(bb) give information of a prescribed description to the scheme
10administrator of a registered pension scheme,

(bc) give information of a prescribed description to a member, or
former member, of the QROPS or former QROPS,”.

93 (1) Section 251 of FA 2004 (regulations about the provision of information) is
amended as follows.

(2) 15In subsection (4)—

(a) omit the “or” at the end of paragraph (a), and

(b) after paragraph (b) insert—

“(c) requiring scheme administrators of registered
pension schemes to provide information of a
20prescribed description to scheme managers of
qualifying recognised overseas pension schemes, or

(d) requiring members or former members of a relevant
non-UK pension scheme to provide information to
the scheme administrators, or scheme managers, of
25registered pension schemes or other relevant non-UK
pension schemes.”

(3) In subsection (6) at the end insert “; and “relevant non-UK scheme” has the
meaning given by paragraph 1 of Schedule 34”.

94 In paragraph 5 of Schedule 33 to FA 2004 (conditions for scheme to be
30qualifying overseas pension scheme include condition that manager has
undertaken to comply with prescribed benefit crystallisation information
requirements) after sub-paragraph (2) insert—

“(2A) In sub-paragraph (2) “information relating to events that are
benefit crystallisation events”, in relation to any individuals,
35includes (in particular) information relating to occasions that are,
or could (depending on their relative timing) be, the occasions on
which the individuals first flexibly access pension rights for the
purposes of sections 227B to 227F.”

95 (1) Schedule 34 to FA 2004 (application of certain tax charges to non-UK
40schemes) is amended as follows.

(2) In paragraph 1(3) (list of “member payment charges”) before the “and” at the
end of paragraph (d) insert—

“(da) the charges under section 636A(1A) and (1B) of ITEPA
2003 (uncrystallised funds pension lump sums),”.

(3) 45In paragraph 1(4)—

(a) after “The “member payment provisions” are” insert “—

(a)”, and

(b) at the end insert “, and

(b) section 636A(1A) to (1C) of ITEPA 2003.”

(4) 5After paragraph 5 insert—

“5A (1) Sub-paragraph (2) applies if—

(a) a payment is made (or treated by this Part as made) to or in
respect of a relieved member or transfer member of a
relevant non-UK scheme, and

(b) 10there is an amount of tax under a member payment charge
that would be payable in respect of the payment, or part of
the payment, but for the operation of double taxation
arrangements.

(2) The payment or (as the case may be) that part of it—

(a) 15is “pension” for the purposes of Chapter 4 of Part 9 of
ITEPA 2003 (foreign pensions); and

(b) is to be treated as included in the list, in section 576A of
ITEPA 2003, of payments that are “relevant withdrawals”
for the purposes of that section.”

(5) 20In paragraph 6 (tax under member payment charges to be reduced by
foreign tax in respect of the payment concerned)—

(a) in sub-paragraph (1) after “in consequence of paragraph 1” insert “,
or by virtue of the operation of Chapter 4 of Part 9 of ITEPA 2003 in
consequence of paragraph 5A,”, and

(b) 25in sub-paragraph (2) after “in consequence of paragraph 1” insert “or
5A”.

(6) In paragraph 7(2) (regulations modifying the application, in relation to
relevant non-UK schemes, of the member payment provisions) after
paragraph (b) insert—

“(ba) 30contain transitional provisions and savings,”.

(7) After paragraph 9 insert—

“9ZA (1) For the purposes of determining the annual allowance charge in
the case of an individual for a relevant tax year, a pension scheme
is to be treated for the purposes of section 227G as a registered
35pension scheme if—

(a) in relation to that tax year, or

(b) in relation to any earlier tax year (whether or not a relevant
tax year),

the scheme is a currently-relieved non-UK pension scheme and
40the individual is a currently-relieved member of the scheme.

(2) For the purposes of this paragraph, a tax year is a “relevant tax
year” in relation to an individual if—

(a) it is—

(i) the first tax year in relation to which the individual
45is a currently-relieved member of any currently-
relieved non-UK pension scheme, or

(ii) if later, the tax year 2015-16, or

(b) it is a tax year subsequent to the tax year identified under
paragraph (a).

9ZB (1) Sub-paragraph (2) has effect if at any particular time—

(a) an individual is a transfer member of a relevant non-UK
5scheme,

(b) the scheme is, or at any previous time has been, a
qualifying recognised overseas pension scheme, and

(c) the particular time is not in a tax year in relation to which
the scheme is a currently-relieved non-UK pension scheme
10of which the individual is a currently-relieved member.

(2) Section 227G applies in the individual’s case as if the scheme, so
far as relating to the individual’s relevant transfer fund under the
scheme, were a registered pension scheme at the particular time.

(3) The reference in sub-paragraph (2) to the individual’s relevant
15transfer fund under the relevant non-UK scheme is to be read in
accordance with paragraph 4.”

(8) In paragraph 11 (calculating pension input amounts for certain non-UK
money purchase arrangements) after sub-paragraph (2) insert—

“(3) Where a calculation under section 233(1) as applied by paragraph
208 is being carried out for the purposes of section 227F(3) in respect
of a period that ends at the end of a tax year (see paragraph 9 and
section 227F(1)), the appropriate fraction for the purposes of sub-
paragraph (1)(b) is the appropriate fraction given by sub-
paragraph (2) for that tax year (even where the period in respect of
25which the calculation is being carried out is part only of that tax
year).”

(9) In paragraphs 12(2) and 19(2) (regulations modifying the application, in
relation to relevant non-UK schemes, of the annual allowance provisions
and lifetime allowance provisions) before the “and” at the end of paragraph
30(b) insert—

“(ba) contain transitional provisions and savings,”.

96 (1) The Pension Schemes (Application of UK Provisions to Relevant Non-UK
Schemes) Regulations 2006 (S.I. 2006/207S.I. 2006/207) are amended as follows.

(2) In regulation 5 (Part 4 of FA 2004 is modified in accordance with Part 3 of the
35Regulations) for “these Regulations” substitute “this Part”.

(3) Regulation 15 (modifications of Schedule 29 to FA 2004 in its application to
relevant non-UK schemes) is amended in accordance with sub-paragraphs
(4) to (14).

(4) In paragraph (2), in the inserted paragraph 1(4B), before the “and” at the end
40of paragraph (a) insert—

“(aa) the referable portion of any previous uncrystallised funds
pension lump sum paid to or in respect of the member by
a recognised overseas pension scheme;”.

(5) In paragraph (2), in the inserted paragraph 1(4C), before the “and” at the end
45of paragraph (a) insert—

“(aa) the referable portion of any previous uncrystallised funds
pension lump sum to which the member became entitled

under a relevant non-UK scheme since the paragraph 15
BCE occurred;”.

(6) In paragraph (3)(a), in the inserted definition of “RP”, after “any previous
pension commencement lump sum” insert “or previous uncrystallised funds
5pension lump sum”.

(7) In paragraph (3)(b), in the inserted paragraph 2(7ZA), after “to a pension
commencement lump sum,” insert “or to an uncrystallised funds pension
lump sum,”.

(8) In paragraph (4)(b), in the inserted paragraph 4(6), before the “and” at the
10end of paragraph (a) insert—

“(aa) the referable portion of any previous uncrystallised funds
pension lump sum paid to or in respect of the member by
a recognised overseas pension scheme;”.

(9) In paragraph (4)(b), in the inserted paragraph 4(7), before the “and” at the
15end of paragraph (a) insert—

“(aa) the referable portion of any earlier uncrystallised funds
pension lump sum to which the member became entitled
under a relevant non-UK scheme since the paragraph 15
BCE occurred;”.

(10) 20After paragraph (4) insert—

“(4A) In paragraph 4A (uncrystallised funds pension lump sums) after
sub-paragraph (2) insert—

“(2A) In determining for the purposes of sub-paragraph (1)(b) whether all
or part of the member’s lifetime allowance is available—

(a) 25disregard any amount treated as crystallising by virtue of a
relevant BCE, and

(b) the amount of the allowance available is reduced by the
amount determined in accordance with sub-paragraph (2B)
or (2C), as the case may require.

(2B) 30Where benefit crystallisation event 8 has occurred, the member’s
lifetime allowance that is available is reduced by the aggregate of—

(a) the referable portion of any previous pension
commencement lump sum paid to or in respect of the
member by a recognised overseas pension scheme,

(b) 35the referable portion of any previous uncrystallised funds
pension lump sum paid to or in respect of the member by a
recognised overseas pension scheme, and

(c) the referable portion of the amount which would have
crystallised by virtue of the member becoming entitled to a
40pension, had the scheme paying it been a registered pension
scheme and disregarding paragraph 2 of Schedule 32.

(2C) Where the paragraph 15 BCE has occurred, the member’s lifetime
allowance that is available is reduced by the aggregate of—

(a) the referable portion of any earlier pension commencement
45lump sum to which the member became entitled under a
relevant non-UK scheme since the paragraph 15 BCE
occurred,

(b) the referable portion of any earlier uncrystallised funds
pension lump sum to which the member became entitled
under a relevant non-UK scheme since the paragraph 15 BCE
occurred, and

(c) 5in respect of any pension to which the member has become
entitled since the paragraph 15 BCE occurred, the referable
portion of the amount which would have crystallised by
virtue of the member’s becoming entitled to the pension, had
the scheme paying it been a registered pension scheme and
10disregarding paragraph 2 of Schedule 32.””

(11) In paragraph (6), in the inserted paragraph 7(7), before the “and” at the end
of paragraph (a) insert—

“(aa) the referable portion of any previous uncrystallised funds
pension lump sum paid to or in respect of the member by
15a recognised overseas pension scheme;”.

(12) In paragraph (6), in the inserted paragraph 7(8), before the “and” at the end
of paragraph (a) insert—

“(aa) the referable portion of any earlier uncrystallised funds
pension lump sum to which the member became entitled
20under a relevant non-UK scheme since the paragraph 15
BCE occurred;”.

(13) In paragraph (7), in the inserted paragraph 10(5), before the “and” at the end
of paragraph (a) insert—

“(aa) the referable portion of any previous uncrystallised funds
25pension lump sum paid to or in respect of the member by
a recognised overseas pension scheme;”.

(14) In paragraph (7), in the inserted paragraph 10(6), before the “and” at the end
of paragraph (a) insert—

“(aa) the referable portion of any earlier uncrystallised funds
30pension lump sum to which the member became entitled
under a relevant non-UK scheme since the paragraph 15
BCE occurred;”.

(15) After Part 3 insert—

““Part 4

18 35Modifications to section 636A of ITEPA 2003 in respect of relevant
non-UK schemes

Section 636A(1B) of the Income Tax (Earnings and Pensions) Act
2003 (income tax on uncrystallised funds pension lump sums under
registered pension schemes: meaning of “member’s available
40lifetime allowance”) has effect in relation to relevant non-UK
schemes as if the following provisions were inserted in section 636A
of that Act after subsection (1C)—

(1D) In determining the member’s available lifetime allowance for the
purposes of subsection (1B)—

(a) 45disregard any amount treated as crystallising by virtue of—

(i) benefit crystallisation event 8 (see section 216 of, and
Schedule 32 to, FA 2004), or

(ii) the benefit crystallisation event treated as occurring
by virtue of paragraph 15 of Schedule 34 to FA 2004
(“the paragraph 15 BCE”), and

(b) the amount of the allowance available is reduced by the
5amount determined in accordance with subsection (1E) or
(1F), as the case may require.

(1E) Where benefit crystallisation event 8 has occurred, the member’s
available lifetime allowance is reduced by the aggregate of—

(a) the referable portion of any previous pension
10commencement lump sum paid to or in respect of the
member by a recognised overseas pension scheme,

(b) the referable portion of any previous uncrystallised funds
pension lump sum paid to or in respect of the member by a
recognised overseas pension scheme, and

(c) 15the referable portion of the amount which would have
crystallised by virtue of the member becoming entitled to a
pension, had the scheme paying it been a registered pension
scheme and disregarding paragraph 2 of Schedule 32 to FA
2004;

20and in this subsection “referable portion” means portion referable to
the member’s relevant transfer fund (within the meaning given by
paragraph 4 of Schedule 34 to FA 2004).

(1F) Where the paragraph 15 BCE has occurred, the member’s available
lifetime allowance is reduced by the aggregate of—

(a) 25the referable portion of any earlier pension commencement
lump sum to which the member became entitled under a
relevant non-UK scheme since the paragraph 15 BCE
occurred,

(b) the referable portion of any earlier uncrystallised funds
30pension lump sum to which the member became entitled
under a relevant non-UK scheme since the paragraph 15 BCE
occurred, and

(c) in respect of any pension to which the member has become
entitled since the paragraph 15 BCE occurred, the referable
35portion of the amount which would have crystallised by
virtue of the member’s becoming entitled to the pension, had
the scheme paying it been a registered pension scheme and
disregarding paragraph 2 of Schedule 32 to FA 2004;

and in this subsection “referable portion” means portion referable to
40the member’s UK tax-relieved fund (within the meaning given by
paragraph 3 of Schedule 34 to FA 2004).

(1G) In subsections (1E) and (1F)—

• “recognised overseas pension scheme” and “pension” have the
  same meaning as in Part 4 of FA 2004 (see section 280(2) of FA
  452004), and

• “relevant non-UK scheme” has the same meaning as in
  Schedule 34 to FA 2004 (see paragraph 1 of that Schedule).””

(16) The amendments made by this paragraph—

(a) have effect in relation to lump sums paid on or after 6 April 2015, and

(b) are to be treated as having been made by the Commissioners for Her
Majesty’s Revenue and Customs under such of the powers conferred
on them by Schedule 34 to FA 2004 (as amended by this Schedule) as
are applicable.

97 (1) 5In this paragraph—

• “the 2013 Regulations” means the Registered Pension Schemes and
  Overseas Pension Schemes (Miscellaneous Amendments)
  Regulations 2013 (S.I. 2013/2259S.I. 2013/2259), and

• “the 2006 Regulations” means the Pension Schemes (Information
  10Requirements for Qualifying Overseas Pension Schemes, Qualifying
  Recognised Overseas Pension Schemes and Corresponding Relief)
  Regulations 2006 (S.I. 2006/208S.I. 2006/208).

(2) In regulation 3 of the 2013 Regulations (paragraph 3(1A) of the 2006
Regulations has effect in relation to 5-year periods ending on or after 1 April
152015) for “1st April 2015” substitute “6 April 2016”.

(3) In regulation 3(1C)(a) of the 2006 Regulations (transitional modification of
the time limit in regulation 3(1A)) for “1st April 2010” substitute “6 April
2011”.