Taxation of Pensions Bill (HL Bill 66)

(2) In subsection (2) (relevant withdrawals treated as accruing in the year of
return from temporary non-residence) at the end insert “, but only if the total
amount of—

“(1)(a)the relevant withdrawals within subsection (3), and

(a) 5the relevant withdrawals (as defined by section 579CA(4))
within section 579CA(3) for the same temporary period of
non-residence,

exceeds £100,000”.

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

“(4) 10A “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
a registered pension scheme, be income withdrawal (within
15the 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
the person under the scheme and would, if the scheme were
20a 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
arrangement,

(c) 25is 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
Schedule 28 to FA 2004) paid to the person from the person’s
30nominee’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
a registered pension scheme, be successors’ income
35withdrawal (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) is a payment to the person of an annuity purchased using
40sums 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
Schedule 28 to FA 2004) purchased using sums or assets out
45of 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
relating to the person under the scheme and would, if the
50scheme 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
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
5relating 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
10drawdown 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
15successors’ 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
20arrangement 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
registered pension scheme, have been income withdrawal or
25dependants’ 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—

(i) 30the 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
2004, and

(ii) 35the 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
be decreases from time to time allowed by regulations
40under 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) is a payment to the person under a money purchase
45arrangement 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
having become entitled to at a time on or after 6 April 2015
50when 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

currency 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.”

(4) In subsection (9)—

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

• ““member’s flexi-access drawdown fund” and
  “dependant’s flexi-access drawdown fund” have the
  same meaning as in Part 4 of FA 2004 (see paragraphs
  8A and 22A of Schedule 28 to FA 2004);”, and

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

• ““scheme pension” means a scheme pension within the
  meaning of paragraph 2 of Schedule 28 to FA 2004 or
  a dependants’ scheme pension within the meaning of
  paragraphs 16 to 16C of that Schedule;”.

(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

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—

(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.”

(5) In each of subsections (5) to (7) omit “non-UK income”.

(6) In subsection (8)—

(a) 30for the definition of “flexible drawdown arrangement” substitute—

• ““member’s flexi-access drawdown fund” and
  “dependant’s flexi-access drawdown fund” have the
  same meaning as in Part 4 of FA 2004 (see paragraphs
  8A and 22A of Schedule 28 to FA 2004);”,

(b) 35omit the definition of “relevant non-UK income withdrawal”, and

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

• ““scheme pension” means a scheme pension within the
  meaning of paragraph 2 of Schedule 28 to FA 2004 or
  a dependants’ scheme pension within the meaning of
  40paragraphs 16 to 16C of that Schedule;”.

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

Regulations 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
45regulations make provision—

(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) having the effect that the making of a prescribed authorised
payment is not a relevant withdrawal for the purposes of
5section 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,
where the payment would be an authorised payment if the
scheme were a registered pension scheme, is not a relevant
10withdrawal for the purposes of section 576A of ITEPA 2003.

(4) In subsection (3)—

• “authorised payment” means a payment specified in subsection
  (1), and

• “prescribed” means prescribed in regulations under subsection
  15(3).”

Part 6 Provision of information

86 The Registered Pension Schemes (Provision of Information) Regulations
2006 (S.I. 2006/567S.I. 2006/567) are amended as follows.

87 20After regulation 14 insert—

“14ZA Information provided to member by scheme administrator where it
appears member may be first flexibly accessing pension rights

(1) If a relevant event (see paragraph (2)) occurs in relation to a member
of a registered pension scheme, the scheme administrator—

(a) 25must 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) must do so before the end of the 31 days beginning with the
date of the relevant event,

30but this is subject to paragraph (4).

(2) For the purposes of this regulation—

(a) if—

(i) the member has a member’s flexi-access drawdown
fund in respect of an arrangement under the scheme,
35and

(ii) the fund came into being as a result of sums or assets
being designated on or after 6 April 2015 as available
for the payment of drawdown pension, or as a result
of the operation of paragraph 8D(2) of Schedule 28,

40a relevant event occurs when a qualifying payment is made
to the member from the fund,

(b) if—

(i) the member has a member’s drawdown pension fund
in respect of an arrangement under the scheme, and

(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,

(d) if the member is entitled to payment of a lifetime annuity
10under a flexible annuity contract as defined by section
227G(8), a relevant event occurs when the first payment of
the annuity is made,

(e) if—

(i) the member is entitled to payment of a scheme
15pension 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
20a 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
25contract 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

(f) a relevant event occurs when a stand-alone lump sum is paid
30on 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
35and 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,
40relating 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
45less than it would otherwise be, and

(c) the duties under regulation 14ZB and the circumstances in
which the member will have to comply with them.

(4) The scheme administrator is not required to comply with paragraph
(1) in relation to the relevant event if—

(a) 50the scheme administrator has complied with paragraph (1) in
respect 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) 5by the scheme administrator of another registered
pension scheme,

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
10a reference to—

(a) payment 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
15represents rights attributable to a disqualifying pension credit.

(6) In 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 if active
or contributing etc

(1) 20Paragraphs (3) and (4) 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
25time, the individual is an accruing member (see paragraph
(7)) of the flexed or any other registered pension scheme.

(2) In this regulation—

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

  (a)

  30the 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)

  35ending 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—

  (a)

  40beginning with the date of the relevant event
  concerned, and

  (b)

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

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

(a) 45pass 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
5of which the individual is an accruing member on any day in the
intervening period; but this is subject to paragraph (6).

(4) 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
10an 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) 15of 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
20to paragraphs (5) and (6).

(5) Paragraph (4) does not apply in connection with the individual
becoming an accruing member of any particular scheme if the
individual becomes an accruing member of that scheme upon or
after becoming a member of that scheme as a result of a recognised
25transfer after the date of the relevant event concerned.

(6) Paragraph (3) or (4), 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
14ZD(3) or (4) or 14ZE(3) or (4), or has previously complied with
30paragraph (3) or (4), in relation to the scheme administrator of that
scheme.

(7) 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
35as 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.

(8) 40For 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) 45a 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
5purchase 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.

14ZC 10 Information between scheme administrators on recognised transfers

(1) Paragraph (2) applies if—

(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
15scheme (“the recipient scheme”), and

(b) the 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
20the scheme administrator of the recipient scheme with a statement—

(a) stating 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
25transferring scheme understands to be the date when the
member 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,
30or

(b) if 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
35pension rights are to be read in accordance with section 227G.

14ZD Individual to whom flexible drawdown arrangements applied before
6 April 2015 must tell other schemes if active or contributing etc

(1) Paragraphs (3) and (4) apply if—

(a) at any time before 6 April 2015, section 165(3A) applied to an
40arrangement relating to an individual under a registered
pension scheme (the “flexed” registered pension scheme),
and

(b) on or after 6 April 2015, the individual is an accruing member
(see paragraph (9)) of the flexed or any other registered
45pension scheme.

(2) In this regulation “the relevant 13-week period” means the period of
91 days beginning with—