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1145

 

House of Commons

 
 

Notices of Amendments

 

given on

 

Monday 24 November 2014

 

Consideration of Bill


 

Taxation of Pensions Bill, As Amended


 

Mr Chancellor of the Exchequer 

 

1

 

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 

 

2

 

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.

 

Mr Chancellor of the Exchequer 

 

3

 

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 

 

4

 

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 

 

5

 

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.


 
 

Notices of Amendments: 24 November 2014                  

1146

 

Taxation of Pensions Bill, continued

 
 

Mr Chancellor of the Exchequer 

 

6

 

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 

 

7

 

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 

 

8

 

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 

 

9

 

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,

 

(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 

 

10

 

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


 
 

Notices of Amendments: 24 November 2014                  

1147

 

Taxation of Pensions Bill, continued

 
 

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 

 

11

 

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

 

12

 

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

 

(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


 
 

Notices of Amendments: 24 November 2014                  

1148

 

Taxation of Pensions Bill, continued

 
 

(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 

 

13

 

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 

 

14

 

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 

 

15

 

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.

 

Mr Chancellor of the Exchequer 

 

16

 

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 

 

17

 

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—


 
 

Notices of Amendments: 24 November 2014                  

1149

 

Taxation of Pensions Bill, continued

 
 

(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 

 

18

 

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 

 

19

 

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.

 

Mr Chancellor of the Exchequer 

 

20

 

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 

 

21

 

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.


 
 

Notices of Amendments: 24 November 2014                  

1150

 

Taxation of Pensions Bill, continued

 
 

Mr Chancellor of the Exchequer 

 

22

 

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 

 

23

 

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

 

24

 

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.

 

Mr Chancellor of the Exchequer

 

25

 

Schedule  1,  page  49,  line  17,  at end insert “after 6 April 2015.”

 

Member’s explanatory statement

 

See the explanatory statement for Amendment 24.

 

Mr Chancellor of the Exchequer

 

26

 

Schedule  1,  page  49,  line  21,  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 14ZD more than once to the same pension scheme.

 

Mr Chancellor of the Exchequer 

 

27

 

Schedule  1,  page  49,  line  22,  at end insert—

 

“(7A)    

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


 
 

Notices of Amendments: 24 November 2014                  

1151

 

Taxation of Pensions Bill, continued

 
 

(b)    

a relevant contribution is made under the scheme on that day.”

 

Member’s explanatory statement

 

This Amendment inserts a definition of a phrase used in the text inserted by the Amendments

 

making changes in the earlier provisions of new regulation 14ZD. It replaces the text left out by

 

Amendment 19.

 

Mr Chancellor of the Exchequer 

 

28

 

Schedule  1,  page  49,  line  23,  leave out “paid” and insert “made under a registered

 

pension scheme”

 

Member’s explanatory statement

 

This Amendment adjusts the definition of “relevant contribution” in new regulation 14ZD to bring

 

it into line with the definition inserted into new regulation 14ZB by Amendment 17.

 

Mr Chancellor of the Exchequer 

 

29

 

Schedule  1,  page  49,  line  27,  leave out “flexed or any other registered pension”

 

Member’s explanatory statement

 

This Amendment is consequential on Amendment 28 and further adjusts the definition of “relevant

 

contribution” in new regulation 14ZD to bring it into line with the definition inserted into new

 

regulation 14ZB by Amendment 17.

 

Mr Chancellor of the Exchequer 

 

30

 

Schedule  1,  page  49,  line  32,  leave out “flexed or any other registered pension”

 

Member’s explanatory statement

 

This Amendment is consequential on Amendment 28 and further adjusts the definition of “relevant

 

contribution” in new regulation 14ZD to bring it into line with the definition inserted into new

 

regulation 14ZB by Amendment 17.

 

Mr Chancellor of the Exchequer 

 

31

 

Schedule  1,  page  49,  line  34,  leave out “flexed or any other registered pension”

 

Member’s explanatory statement

 

This Amendment is consequential on Amendment 28 and further adjusts the definition of “relevant

 

contribution” in new regulation 14ZD to bring it into line with the definition inserted into new

 

regulation 14ZB by Amendment 17.

 

Mr Chancellor of the Exchequer 

 

32

 

Schedule  1,  page  49,  line  39,  leave out “under which the contribution was paid”

 

Member’s explanatory statement

 

This Amendment is consequential on Amendment 28 and further adjusts the definition of “relevant

 

contribution” in new regulation 14ZD to bring it into line with the definition inserted into new

 

regulation 14ZB by Amendment 17.

 

Mr Chancellor of the Exchequer 

 

33

 

Schedule  1,  page  49,  line  43,  after “if”, insert “active or contributing etc and”

 

Member’s explanatory statement

 

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

 

in that new regulation by, in particular, Amendment 34.


 
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