House of Commons Public Bill Committee Proceedings

Session 2014 - 15
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Other Bills before Parliament

345

SUPPLEMENT TO THE VOTES AND PROCEEDINGS

Wednesday 3 December 2014

Report Stage Proceedings

Taxation of Pensions Bill, As Amended

New Clauses

Cathy Jamieson

Negatived on division  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

Not called  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

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;

:
346

, continued

(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

Not called  (a)


Line  13,  at end insert—

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

housing market;”

Cathy Jamieson

Not selected  40

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

Agreed to  1

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

access drawdown fund”,”

Mr Chancellor of the Exchequer

Agreed to  2

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

drawdown fund””

Mr Chancellor of the Exchequer

Agreed to  3

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

Mr Chancellor of the Exchequer

Agreed to  4

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

access drawdown fund”,”

Mr Chancellor of the Exchequer

Agreed to  5

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

drawdown fund””

:
347

, continued

Mr Chancellor of the Exchequer

Agreed to  6

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

Mr Chancellor of the Exchequer

Agreed to  7

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

Mr Chancellor of the Exchequer

Agreed to  8

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

Mr Chancellor of the Exchequer

Agreed to  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”

Mr Chancellor of the Exchequer

Agreed to  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.”

Mr Chancellor of the Exchequer

Agreed to  11

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

Mr Chancellor of the Exchequer

Agreed to  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.

:
348

, continued

(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

(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).”

Mr Chancellor of the Exchequer

Agreed to  13

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

Mr Chancellor of the Exchequer

Agreed to  14

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

scheme upon or after becoming”

Mr Chancellor of the Exchequer

Agreed to  15

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

concerned.”

:
349

, continued

Mr Chancellor of the Exchequer

Agreed to  16

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

complied with paragraph (2) or (3),”

Mr Chancellor of the Exchequer

Agreed to  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—

(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.”

Mr Chancellor of the Exchequer

Agreed to  18

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

member (see paragraph (7A))”

Mr Chancellor of the Exchequer

Agreed to  19

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

Mr Chancellor of the Exchequer

Agreed to  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.”

:
350

, continued

Mr Chancellor of the Exchequer

Agreed to  21

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

insert “relevant 13-week period,”

Mr Chancellor of the Exchequer

Agreed to  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”

Mr Chancellor of the Exchequer

Agreed to  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,”

Mr Chancellor of the Exchequer

Agreed to  24

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

scheme upon or after becoming”

Mr Chancellor of the Exchequer

Agreed to  25

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

Mr Chancellor of the Exchequer

Agreed to  26

Schedule  1,  page  49,  line  21,  after second “(3)”, insert “, or has previously

complied with paragraph (2) or (3),”

Mr Chancellor of the Exchequer

Agreed to  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

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

Mr Chancellor of the Exchequer

Agreed to  28

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

pension scheme”

Mr Chancellor of the Exchequer

Agreed to  29

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

:
351

, continued

Mr Chancellor of the Exchequer

Agreed to  30

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

Mr Chancellor of the Exchequer

Agreed to  31

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

Mr Chancellor of the Exchequer

Agreed to  32

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

Mr Chancellor of the Exchequer

Agreed to  33

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

Mr Chancellor of the Exchequer

Agreed to  34

Schedule  1,  page  49,  line  45,  leave out from beginning to end of line 13 on page 50

and insert—

“(1)
Paragraphs (2) and (3) apply if—

(a)
under paragraph 8C of Schedule 28, the drawdown pension fund in

respect of an arrangement relating to an individual under a registered

pension scheme (the “flexed” registered pension scheme) becomes the

individual’s flexi-access drawdown fund in respect of the arrangement,

and

(b)
on the conversion date, 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 conversion date if on that date the individual is an accruing member

of any registered pension scheme, or

(b)
if not, the first day after that date when the individual is an accruing

member of a registered pension scheme.

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

scheme administrator of each other registered pension scheme of which the

individual is an accruing member on the first day of the relevant 13-week

period—

(a)
of the conversion, and

(b)
of the conversion date or (if applicable) of the conversion’s having

occurred more than 2 years before the start of the relevant 13-week

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 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,

inform the scheme administrator of that other scheme—

(a)
of the conversion, and

(b)
of the conversion date or (if applicable) of the conversion’s having

occurred more than 2 years before the activation day;



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