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 50

(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) 5of 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
10becomes 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) Paragraph (3) does not apply in connection with the individual
15becoming 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
a particular scheme if the individual has complied with regulation
2014ZB(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) In paragraph (1) (duty to provide annual pension savings statement)—

(a) 25in 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
met,, and

(c) 30after “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) After paragraph (8) insert—

(9) 35The 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
227B to 227F.

40Condition E

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

(10) The information is—

(a) the total of—

(i) the pension input amounts for the relevant pension
input period in respect of each money purchase
10arrangement 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
under the scheme—

(a) 15that 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) the total of—

(i) 20the pension input amounts for the relevant pension
input period in respect of each defined benefits
arrangement relating to the member under the
scheme, and

(ii) the pension input amounts for the relevant pension
25input 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
relevant pension input period is input amount
30C 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) for each hybrid arrangement relating to the member under
35the 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) for which the pension input amount for the relevant
40pension 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
the relevant pension input period in the case of the
45arrangement, 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
tax year, and the fact the member’s money-purchase input
50sub-total for the relevant tax year will be tested against a
£10,000 allowance,

Taxation of Pensions BillPage 52

(e) the unadjusted alternative annual allowance for each of the
three preceding tax years, and the fact that the member’s
money-purchase input sub-total for each of those preceding
years will be tested against a £10,000 allowance or, if any of
5those 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
in the pension savings statement for the pension input period
ending in that year under, as the case may be, sub-
10paragraphs (a) to (c) or paragraph (2)(a).

(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) 15is 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
20section 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
25and 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
30forward 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) 35The 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
4014A(2)”.

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

23 Dual annual allowances

Taxation of Pensions BillPage 53

The scheme administrator is
required to provide a
member with a pension
savings statement under
regulation 14A(1) containing
the information specified in
regulation 14A(10).
The tax year for which the
statement is provided and the
name and national insurance
number of the member
5together with the information
specified in regulation
14A(10)(a) and (b).

91 The amendments made by this Part of the Schedule—

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

(b) 10are 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 15In section 169(4) of FA 2004 (regulations about the provision of information
by scheme managers of schemes that are or have been qualifying recognised
overseas pension schemes) before the “and” at the end of paragraph (b)
insert—

(ba) give information of a prescribed description to the scheme
20manager of a QROPS or former QROPS,

(bb) give information of a prescribed description to the scheme
administrator 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) 25Section 251 of FA 2004 (regulations about the provision of information) is
amended as follows.

(2) In subsection (4)—

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

(b) after paragraph (b) insert—

(c) 30requiring scheme administrators of registered
pension schemes to provide information of a
prescribed description to scheme managers of
qualifying recognised overseas pension schemes, or

(d) requiring members or former members of a relevant
35non-UK pension scheme to provide information to
the scheme administrators, or scheme managers, of
registered pension schemes or other relevant non-UK
pension schemes.

(3) In subsection (6) at the end insert “; and “relevant non-UK scheme” has the
40meaning given by paragraph 1 of Schedule 34”.

94 In paragraph 5 of Schedule 33 to FA 2004 (conditions for scheme to be
qualifying overseas pension scheme include condition that manager has
undertaken to comply with prescribed benefit crystallisation information

Taxation of Pensions BillPage 54

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,
includes (in particular) information relating to occasions that are,
5or 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
schemes) is amended as follows.

(2) 10In 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) In paragraph 1(4)—

(a) 15after “The “member payment provisions” are” insert

(a), and

(b) at the end insert , and

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

(4) After paragraph 5 insert—

5A (1) 20Sub-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) there is an amount of tax under a member payment charge
25that 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) is “pension” for the purposes of Chapter 4 of Part 9 of
30ITEPA 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) In paragraph 6 (tax under member payment charges to be reduced by
35foreign 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) in sub-paragraph (2) after “in consequence of paragraph 1” insert “or
405A”.

(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) contain transitional provisions and savings,.

Taxation of Pensions BillPage 55

(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
5pension 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
10the 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
15is 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) 20Sub-paragraph (2) has effect if at any particular time—

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

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

(c) 25the particular time is not in a tax year in relation to which
the scheme is a currently-relieved non-UK pension scheme
of 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
30scheme, were a registered pension scheme at the particular time.

(3) The reference in sub-paragraph (2) to the individual’s relevant
transfer 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
35money purchase arrangements) after sub-paragraph (2) insert—

(3) Where a calculation under section 233(1) as applied by paragraph
8 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-
40paragraph (1)(b) is the appropriate fraction given by sub-
paragraph (2) for that tax year (even where the period in respect of
which 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
45relation to relevant non-UK schemes, of the annual allowance provisions
and lifetime allowance provisions) before the “and” at the end of paragraph
(b) insert—

(ba) contain transitional provisions and savings,.

Taxation of Pensions BillPage 56

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
Regulations) for “these Regulations” substitute “this Part”.

(3) 5Regulation 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
of paragraph (a) insert—

(aa) 10the 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
of paragraph (a) insert—

(aa) 15the 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
20pension commencement lump sum” insert “or previous uncrystallised funds
pension 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) 25In paragraph (4)(b), in the inserted paragraph 4(6), 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
a recognised overseas pension scheme;.

(9) 30In paragraph (4)(b), in the inserted paragraph 4(7), 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
under a relevant non-UK scheme since the paragraph 15
35BCE occurred;.

(10) After 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
40or part of the member’s lifetime allowance is available—

(a) disregard 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)
45or (2C), as the case may require.

Taxation of Pensions BillPage 57

(2B) Where 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
5member 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) the referable portion of the amount which would have
10crystallised 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.

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

(a) 15the 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
20pension 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
25portion 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.

(11) In paragraph (6), in the inserted paragraph 7(7), before the “and” at the end
30of 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;.

(12) In paragraph (6), in the inserted paragraph 7(8), before the “and” at the end
35of 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;.

(13) 40In 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
pension lump sum paid to or in respect of the member by
a recognised overseas pension scheme;.

(14) 45In 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
pension lump sum to which the member became entitled
under a relevant non-UK scheme since the paragraph 15
50BCE occurred;.

Taxation of Pensions BillPage 58

(15) After Part 3 insert—

“Part 4

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

5Section 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
lifetime allowance”) has effect in relation to relevant non-UK
schemes as if the following provisions were inserted in section 636A
10of that Act after subsection (1C)—

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

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

(i) benefit crystallisation event 8 (see section 216 of, and
15Schedule 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
20amount 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
25commencement 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) 30the 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;

35and 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) 40the 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
45pension 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

Taxation of Pensions BillPage 59

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
disregarding paragraph 2 of Schedule 32 to FA 2004;

5and in this subsection “referable portion” means portion referable to
the 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)—

(16) The amendments made by this paragraph—

(a) 15have 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) 20In this paragraph—

(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
302015) 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”.

Section 3

SCHEDULE 2 35Death of pension scheme member

Part 1 Death benefits: Nominees and successors

Drawdown benefits for nominees and successors of deceased scheme members

1 FA 2004 is amended as follows.

2 (1) 40Section 167 (the pension death benefit rules) is amended as follows.

Previous Next

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