House of Commons Amendments

Session 2014 - 15
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Other Bills before Parliament

1169

House of Commons

Notices of Amendments

given up to and including

Monday 1 December 2014

New Amendments handed in are marked thus

Amendments which will comply with the required notice period at their next appearance

Consideration of Bill

Taxation of Pensions Bill, As Amended

New Clauses

Cathy Jamieson

NC1


To move the following Clause—


“Impact on Government revenues

(1)
The Chancellor of the Exchequer shall, within a period of no more than two years

from 6 April 2015, publish and lay before the House of Commons a review of the

impact of the changes made by this Act to the Finance Act 2004 and the Income

Tax (Earnings and Pensions) Act 2003 on Government revenue, with particular

reference to opportunities for tax and national insurance contributions avoidance.

(2)
The information published under subsection (1) should include an assessment of

the impact of this Act on—

(a)
the use of salary sacrifice arrangements;

(b)
income tax receipts; and

(c)
national insurance contributions.”

Cathy Jamieson

NC2


To move the following Clause—


“Pension flexibility: Treasury review

(1)
The Chancellor of the Exchequer shall, within a period of no more than 18 months

from 6 April 2015, publish and lay before the House of Commons a

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comprehensive review of the impact of the changes made by this Act to the

Finance Act 2004 and the Income Tax (Earnings and Pensions) Act 2003.

(2)
The information published under subsection (1) must include—

(a)
the distributional impact, by income decile of the population, of changes

made by this Act to the Finance Act 2004 and Income Tax (Earnings and

Pensions) Act 2003;

(b)
the impact on Exchequer revenues of measures contained within

Schedule 2: Death of a Pension Scheme Member, related to changes to

the taxation of pensions at death;

(c)
a behavioural analysis;

(d)
an analysis of the cumulative impact of this Act on Exchequer revenues;

(e)
an analysis of the impact of this Act on the purchase of annuities.”

As an Amendment to Cathy Jamieson’s proposed New Clause (Pension flexibility:

Treasury review) (NC2):—

Hywel Williams

(a)


Line  13,  at end insert—

“( )
an analysis of the impact of the changes introduced by this Act on the

housing market;”

Cathy Jamieson


Schedule  1,  page  4,  line  25,  at end add—

    “(4)
That the Secretary of State shall be permitted to make regulations imposing a

cap on the charges that may be imposed on members of flexi-access drawdown

funds.”

Mr Chancellor of the Exchequer

Schedule  1,  page  37,  line  37,  after “arrangement”,”, insert ““nominee’s flexi-

access drawdown fund”,”

Member’s explanatory statement

This Amendment, and Amendments 2, 3, 4, 5 and 6, insert two missing definitions into the

amendments made by the Bill in each of the two subsisting versions of section 576A of the Income

Tax (Earnings and Pensions) Act 2003.

Mr Chancellor of the Exchequer

Schedule  1,  page  37,  line  38,  after “annuity””, insert “, “successor’s flexi-access

drawdown fund””

Member’s explanatory statement

See the explanatory statement for Amendment 1.

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, continued

Mr Chancellor of the Exchequer

Schedule  1,  page  37,  line  41,  leave out “and 22A” and insert “, 22A, 27E and 27K”

Member’s explanatory statement

See the explanatory statement for Amendment 1.

Mr Chancellor of the Exchequer

Schedule  1,  page  39,  line  35,  after “arrangement”,”, insert ““nominee’s flexi-

access drawdown fund”,”

Member’s explanatory statement

See the explanatory statement for Amendment 1.

Mr Chancellor of the Exchequer

Schedule  1,  page  39,  line  36,  after “annuity””, insert “, “successor’s flexi-access

drawdown fund””

Member’s explanatory statement

See the explanatory statement for Amendment 1.

Mr Chancellor of the Exchequer

Schedule  1,  page  39,  line  39,  leave out “and 22A” and insert “, 22A, 27E and 27K”

Member’s explanatory statement

See the explanatory statement to Amendment 1.

Mr Chancellor of the Exchequer

Schedule  1,  page  42,  leave out lines 1 to 3

Member’s explanatory statement

This Amendment, and Amendment 8, each remove a subsection inserted by the Bill into a version

of section 576A of the Income Tax (Earnings and Pensions) Act 2003 because the subsections

relate to payments not included in the lists of “relevant withdrawals” inserted by the Bill as

introduced.

Mr Chancellor of the Exchequer

Schedule  1,  page  44,  leave out lines 28 to 30

Member’s explanatory statement

See the explanatory statement for Amendment 7.

Mr Chancellor of the Exchequer

Schedule  1,  page  46,  line  8,  at end insert—

“( )
if the member is entitled to payment of a lifetime annuity under a flexible

annuity contract as defined by section 227G(8), a relevant event occurs

when the first payment of the annuity is made,

( )
if—

(i)
the member is entitled to payment of a scheme pension under a

money purchase arrangement under the scheme,

(ii)
the member became entitled to the scheme pension on or after 6

April 2015,

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(iii)
the member became entitled to the scheme pension at a time

when fewer than 11 other individuals were entitled to the present

payment of a scheme pension, or dependants’ scheme pension,

under the scheme, and

(iv)
the scheme pension is not payable under an annuity contract

treated under section 153(8) or (8A) as having become a

registered pension scheme,


a relevant event occurs when the first payment of the scheme pension is

made, and”

Member’s explanatory statement

This Amendment inserts, in a list that sets out the events that give rise to an individual first flexibly

accessing pension rights, missing entries corresponding to the new section 227G(7) and (9)

inserted by paragraph 65 of Schedule 1 to the Bill.

Mr Chancellor of the Exchequer

Schedule  1,  page  46,  leave out lines 26 to 41 and insert “and

(c)
the duties under regulation 14ZB and the circumstances in which the

member will have to comply with them.”

Member’s explanatory statement

This Amendment condenses the text currently in the Bill of new regulation 14ZA(3)(c) and (d). New

regulation 14ZA(3) lists matters that are to be explained in statements under new regulation 14ZA

that are provided by scheme administrators to members.

Mr Chancellor of the Exchequer

Schedule  1,  page  47,  line  12,  at end insert “if active or contributing etc”

Member’s explanatory statement

This Amendment adds words to the title of the new regulation 14ZB to reflect changes to be made

in that new regulation by, in particular, Amendment 12.

Mr Chancellor of the Exchequer

Schedule  1,  page  47,  leave out lines 13 to 35 and insert—

“(1)
Paragraphs (2) and (3) apply if—

(a)
an individual receives a statement under regulation 14ZA from the

scheme administrator of a registered pension scheme (the “flexed”

registered pension scheme), and

(b)
on the date of the relevant event concerned, or at any later time, the

individual is an accruing member (see paragraph (6)) of the flexed or any

other registered pension scheme.

(1A)
In this regulation—

“the relevant 13-week period” means the period of 91 days beginning

with—

(a)
the date of receipt if the individual is an accruing member of any

registered pension scheme on any day in the period—

(i)
beginning with the date of the relevant event concerned,

and

(ii)
ending with the date of receipt, or

(b)
if not, the first day after the date of receipt when the individual is

an accruing member of a registered pension scheme, and

“the intervening period” means the period—

(c)
beginning with the date of the relevant event concerned, and

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(d)
ending with the first day of the relevant 13-week period.

(2)
The individual must before the end of the relevant 13-week period—

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

(b)
otherwise give notice—

(i)
of receipt of the statement, and

(ii)
of the date of the relevant event concerned or (if applicable) of

its having occurred more than 2 years before the start of the

relevant 13-week period,


to the scheme administrator of each other registered pension scheme of which the

individual is an accruing member on any day in the intervening period; but this is

subject to paragraph (5).

(3)
Where, in the case of a particular registered pension scheme other than the flexed

scheme, the individual is not an accruing member of that other scheme on any day

in the intervening period but becomes an accruing member of that other scheme

on a day (“the activation day”) after the last day of that period, the individual must

before the end of the 91 days beginning with the activation day—

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

(b)
otherwise give notice—

(i)
of receipt of the statement, and

(ii)
of the date of the relevant event concerned or (if applicable) of

its having occurred more than 2 years before the activation day,


to the scheme administrator of that other scheme; but this is subject to paragraphs

(4) and (5).”

Member’s explanatory statement

This Amendment makes a change in new regulation 14ZB to simplify the obligations for individuals

who have flexibly accessed their pension savings. Information will need to be provided to a scheme

only when the individual is an accruing member of that scheme and within a 91 day period.

Mr Chancellor of the Exchequer

Schedule  1,  page  47,  line  37,  leave out “a” and insert “an accruing”

Member’s explanatory statement

This Amendment, and Amendments 14 and 15, are consequential on Amendment 12 and make

changes in new regulation 14ZB to ensure that an individual does not have to tell the scheme

administrator if they become an accruing member of the scheme as a result of a recognised

transfer.

Mr Chancellor of the Exchequer

Schedule  1,  page  47,  line  38,  after “becomes”, insert “an accruing member of that

scheme upon or after becoming”

Member’s explanatory statement

See the explanatory statement for Amendment 13.

Mr Chancellor of the Exchequer

Schedule  1,  page  47,  line  38,  at end insert “after the date of the relevant event

concerned.”

Member’s explanatory statement

See the explanatory statement for Amendment 13.

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, continued

Mr Chancellor of the Exchequer

Schedule  1,  page  47,  line  42,  after second “(3)”, insert “, or has previously

complied with paragraph (2) or (3),”

Member’s explanatory statement

This Amendment ensures that a member of a pension scheme does not have to provide information

under new regulation 14ZB more than once to the same pension scheme.

Mr Chancellor of the Exchequer

Schedule  1,  page  47,  line  43,  at end insert—

“(6)
For the purposes of this regulation, the individual is an accruing member of a

registered pension scheme on any particular day if—

(a)
the individual is an active member of the scheme on that day 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

(b)
a relevant contribution is made under the scheme on that day.

(7)
For the purposes of this regulation, a relevant contribution is made under a

registered pension scheme if—

(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 scheme,

(b)
a 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 scheme, or

(c)
a contribution—

(i)
paid under the 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 scheme;


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

money purchase arrangement other than a cash balance arrangement.”

Member’s explanatory statement

This Amendment defines terms used in the provisions inserted by Amendment 12. The definitions

are largely based on the text currently in the Bill of new regulation 14ZD(1)(b) and (8).

Mr Chancellor of the Exchequer

Schedule  1,  page  48,  line  33,  leave out “active member” and insert “accruing

member (see paragraph (7A))”

Member’s explanatory statement

This Amendment makes a change in new regulation 14ZD to bring that new regulation into line

with the changes made by Amendment 12 in new regulation 14ZB.

Mr Chancellor of the Exchequer

Schedule  1,  page  48,  line  34,  leave out from “scheme” to end of line 38

Member’s explanatory statement

This Amendment makes a change in new regulation 14ZD to bring that new regulation into line

with the changes made by Amendment 12 in new regulation 14ZB. The text left out is replaced by

the new regulation 14ZD(7A) inserted by Amendment 27.

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, continued

Mr Chancellor of the Exchequer

Schedule  1,  page  48,  line  38,  at end insert—

“(1A)
In this regulation “the relevant 13-week period” means the period of 91 days

beginning with—

(a)
6 April 2015 if on that date the individual is an accruing member of any

registered pension scheme, or

(b)
if not, the first day after 6 April 2015 when the individual is an accruing

member of a registered pension scheme.”

Member’s explanatory statement

This Amendment makes a change in new regulation 14ZD to bring that new regulation into line

with the changes made by Amendment 12 in new regulation 14ZB.

Mr Chancellor of the Exchequer

Schedule  1,  page  48,  line  39,  leave out from second “the” to end of line 44 and

insert “relevant 13-week period,”

Member’s explanatory statement

This Amendment makes a change in new regulation 14ZD to bring that new regulation into line

with the changes made by Amendment 12 in new regulation 14ZB.

Mr Chancellor of the Exchequer

Schedule  1,  page  48,  line  47,  leave out “a member on the first day of that” and

insert “an accruing member on the first day of the relevant 13-week”

Member’s explanatory statement

This Amendment makes a change in new regulation 14ZD to bring that new regulation into line

with the changes made by Amendment 12 in new regulation 14ZB.

Mr Chancellor of the Exchequer

Schedule  1,  page  49,  line  1,  leave out from “Where” to “provide” in line 4 and

insert “, in the case of a particular registered pension scheme other than the flexed scheme,

the individual is not an accruing member of that other scheme on the first day of the

relevant 13-week period but becomes an accruing member of that other scheme on a day

(“the activation day”) after the first day of that period, the individual must, before the end

of the 91 days beginning with the activation day,”

Member’s explanatory statement

This Amendment makes a change in new regulation 14ZD to bring that new regulation into line

with the changes made by Amendment 12 in new regulation 14ZB.

Mr Chancellor of the Exchequer

Schedule  1,  page  49,  line  16,  after “becomes”, insert “an accruing member of that

scheme upon or after becoming”

Member’s explanatory statement

This Amendment, and Amendment 25, are consequential on Amendments changing earlier

provisions of new regulation 14ZD and further change that regulation to ensure that an individual

does not have to tell the scheme administrator if they become an accruing member of the scheme

as a result of a recognised transfer.



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