Previous Next

Contents page 1-17 18-19 20-29 30-39 40-49 50-59 60-69 70-76 Last page

Taxation of Pensions BillPage 40

(a) the relevant withdrawals (as defined by section 579CA(4))
within section 579CA(3) for the same temporary period of
non-residence,

exceeds £100,000.

(3) 5For subsection (4) (meaning of “relevant withdrawal”) substitute—

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

(a) is paid to the person in respect of an arrangement relating to
the person under the scheme and would, if the scheme were
10a 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) is paid to the person in respect of an arrangement relating to
15the 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
dependant’s flexi-access drawdown fund in respect of the
20arrangement,

(c) is 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 nominees’ income
withdrawal (within the meaning of paragraph 27D of
25Schedule 28 to FA 2004) paid to the person from the person’s
nominee’s flexi-access drawdown fund in respect of the
arrangement,

(d) is paid to the person in respect of an arrangement relating to
the person under the scheme and would, if the scheme were
30a registered pension scheme, be successors’ income
withdrawal (within the meaning of paragraph 27J of
Schedule 28 to FA 2004) paid to the person from the person’s
successor’s flexi-access drawdown fund in respect of the
arrangement,

(e) 35is 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
short-term annuity (within the meaning of paragraph 6 of
40Schedule 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,

(f) is a payment to the person of an annuity purchased using
sums or assets held for the purposes of an arrangement
45relating 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
paragraph 20 of Schedule 28 to FA 2004) purchased using
sums or assets out of the person’s dependant’s flexi-access
50drawdown fund in respect of the arrangement,

(g) is a payment to the person of an annuity purchased using
sums or assets held for the purposes of an arrangement

Taxation of Pensions BillPage 41

relating to the person under the scheme and would, if the
scheme were a registered pension scheme, be a payment of a
nominees’ short-term annuity (within the meaning of
paragraph 27C of Schedule 28 to FA 2004) purchased using
5sums or assets out of the person’s nominee’s flexi-access
drawdown fund in respect of the arrangement,

(h) 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
10scheme were a registered pension scheme, be a payment of a
successors’ short-term annuity (within the meaning of
paragraph 27H of Schedule 28 to FA 2004) purchased using
sums or assets out of the person’s successor’s flexi-access
drawdown fund in respect of the arrangement,

(i) 15is paid before 6 April 2015 to the person in respect of an
arrangement relating to the person under the scheme which
at 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 had been a
20registered pension scheme, have been income withdrawal or
dependants’ income withdrawal (within the meaning of
paragraphs 7 and 21 of Schedule 28 to FA 2004),

(j) is a payment to the person of an annuity purchased using
sums or assets held for the purposes of an arrangement
25relating to the person under the scheme where—

(i) the payment would, if the scheme were a registered
pension 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
302004, and

(ii) the terms of the contract under which it is paid are
such 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
35be 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

(k) 40is 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
45having 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
50currency 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.

Taxation of Pensions BillPage 42

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

(4) In subsection (9)—

(a) 5for the definition of “flexible drawdown arrangement” substitute—

(b) 10after the definition of “remitted to the United Kingdom” insert—

(5) 15The 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
schemes: temporary non-residents) is amended as follows.

(2) In subsection (1)—

(a) 20for “non-UK income withdrawal under a relevant non-UK scheme”
substitute “withdrawal paid to a person”,

(b) omit paragraph (a), and

(c) at the end insert “, but only if the total amount of the relevant
withdrawals meeting those conditions, and the relevant withdrawals
25(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) In subsection (4) for “non-UK income withdrawal falling within subsection
(1)” substitute “withdrawal that meets the conditions in subsection (1)(b)
30and (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
35the 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) 40is 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
45dependant’s flexi-access drawdown fund in respect of the
arrangement,

(c) is 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 nominees’ income

Taxation of Pensions BillPage 43

withdrawal (within the meaning of paragraph 27D of
Schedule 28 to FA 2004) paid to the person from the person’s
nominee’s flexi-access drawdown fund in respect of the
arrangement,

(d) 5is 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 successors’ income
withdrawal (within the meaning of paragraph 27J of
Schedule 28 to FA 2004) paid to the person from the person’s
10successor’s flexi-access drawdown fund in respect of the
arrangement,

(e) 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
15scheme 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,

(f) 20is 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
25paragraph 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,

(g) is a payment to the person of an annuity purchased using
sums or assets held for the purposes of an arrangement
30relating to the person under the scheme and would, if the
scheme were a registered pension scheme, be a payment of a
nominees’ short-term annuity (within the meaning of
paragraph 27C of Schedule 28 to FA 2004) purchased using
sums or assets out of the person’s nominee’s flexi-access
35drawdown fund in respect of the arrangement,

(h) 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
scheme were a registered pension scheme, be a payment of a
40successors’ short-term annuity (within the meaning of
paragraph 27H of Schedule 28 to FA 2004) purchased using
sums or assets out of the person’s successor’s flexi-access
drawdown fund in respect of the arrangement,

(i) is paid before 6 April 2015 to the person in respect of an
45arrangement relating to the person under the scheme which
at 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
50dependants’ income withdrawal (within the meaning of
paragraphs 7 and 21 of Schedule 28 to FA 2004),

(j) 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—

Taxation of Pensions BillPage 44

(i) the payment would, if the scheme were a registered
pension 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
52004, and

(ii) the terms of the contract under which it is paid are
such 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
10be 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

(k) 15is 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
20having 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
25currency 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)(i) is, if it meets the
conditions in subsection (1)(b) and (c), treated for the purposes of
30this 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—

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

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

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

45Regulations 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—

Taxation of Pensions BillPage 45

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

(b) 5having the effect that the making of a prescribed authorised
payment is not a relevant withdrawal for the purposes of
section 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,
10where 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)—

Part 6 Provision of information

86 20The 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) 25If 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) 30must 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) 35the 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
40for 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) 45the member has a member’s drawdown pension fund
in respect of an arrangement under the scheme, and

Taxation of Pensions BillPage 46

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

a relevant event occurs when a qualifying payment is made
5to 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) a relevant event occurs when a stand-alone lump sum is paid
10on 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
15and 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,
20relating 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
25less 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
30other 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
35registered 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
40the 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
45respect 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) 50by the scheme administrator of another registered
pension scheme,

Taxation of Pensions BillPage 47

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
a reference to—

(a) 5payment 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
represents rights attributable to a disqualifying pension credit.

(6) 10In 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
under regulation 14ZA from the scheme administrator of a
15registered 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) pass on a copy of the statement, or

(b) 20otherwise 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
of which the individual is a member at any time in the period
25beginning 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
individual must before the end of the 31 days beginning with the
30date 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) the date of the relevant event concerned,

35to 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) Paragraph (2) or (3), as the case may be, does not require the
40information 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 Information between scheme administrators on recognised transfers

(1) 45Paragraph (2) applies if—

Taxation of Pensions BillPage 48

(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
scheme (“the recipient scheme”), and

(b) 5the 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
the scheme administrator of the recipient scheme with a statement—

(a) 10stating 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
transferring scheme understands to be the date when the
15member 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,
or

(b) 20if 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
pension rights are to be read in accordance with section 227G.

14ZD 25 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
arrangement relating to an individual under a registered
30pension 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
any other registered pension scheme as a result of
35there 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) The individual must, before the end of the period of 31 days
40beginning (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
or after 6 April 2015,

45provide 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).

Taxation of Pensions BillPage 49

(3) Where 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
5specified in paragraph (4) to the scheme administrator of that other
scheme; 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) 10Paragraph (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) Paragraph (3) does not require that information to be provided to the
15scheme 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
information to be provided to the scheme administrator of a
20particular 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
if—

(a) 25a 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) a contribution is paid in respect of the individual by an
30employer 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) paid under the flexed or any other registered pension
35scheme 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 under which the contribution was paid;

40and 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
28, drawdown pension fund becomes flexi-access drawdown fund

(1) 45Paragraphs (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
arrangement, but this is subject to paragraphs (4) and (5).

Previous Next

Contents page 1-17 18-19 20-29 30-39 40-49 50-59 60-69 70-76 Last page