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Finance Bill


Finance Bill
Part 4 — Pension schemes etc
Chapter 6 — Employer-financed retirement benefits schemes

194

 

(5)   

In subsection (1)(e) “pension sharing order or provision” means any

such order or provision as is mentioned in section 28(1) of WRPA 1999

or Article 25(1) of WRP(NI)O 1999.

(4)   

Section 394 (charge on benefit) is amended as follows.

(5)   

After subsection (1) insert—

5

“(1A)   

Subsection (1) does not apply in relation to the benefit if the total

amount of the benefits to which this Chapter applies received by the

individual in the relevant tax year does not exceed £100.”

(6)   

In subsection (2)—

(a)   

for “administrator of” substitute “person who is (or persons who are)

10

the responsible person in relation to”, and

(b)   

insert at the end “and is assessable accordingly.”

(7)   

In subsection (3), for “subsections (1) and (2)” substitute “this section”.

(8)   

For sections 395 to 397 substitute—

“395    

Reduction where employee has contributed

15

(1)   

This section applies in relation to a relevant benefit under an employer-

financed retirement benefits scheme in the form of a lump sum where,

under the scheme, an employee has paid any sum or sums by way of

contribution to the provision of the lump sum.

(2)   

The amount which, by virtue of section 394, counts as employment

20

income, or is chargeable to tax under Case VI of Schedule D, is the

amount of the lump sum reduced by the sum, or the aggregate of the

sums, paid by the employee by way of contribution to the provision of

the lump sum.

(3)   

A reduction under this section may not be claimed in respect of the

25

same contribution in relation to more than one lump sum.

(4)   

It is to be assumed, unless the contrary is shown, that no reduction is

applicable under this section.”

(9)   

In subsection (1) of section 399 (valuation of benefit in form of loan), for

“administrator of” substitute “person who is (or any of the persons who are)

30

the responsible person in relation to”.

(10)   

In subsection (2) of that section, for “administrator” substitute “responsible

person”.

(11)   

For section 400 substitute—

“399A   

 Responsible person

35

(1)   

The following heads specify the person who is, or persons who are, the

responsible person in relation to an employer-financed retirement

benefits scheme for the purposes of this Chapter.

(2)   

But if a person is, or persons are, the responsible person in relation to

the scheme by virtue of being specified under one head, no-one is the

40

responsible person in relation to the scheme by virtue of being specified

under a later head.

 

 

Finance Bill
Part 4 — Pension schemes etc
Chapter 7 — Compliance

195

 

Head 1

If there are one or more trustees of the scheme who are resident in the

United Kingdom, that trustee or each of those trustees.

Head 2

If there are one or more persons who control the management of the

5

scheme, that person or each of those persons.

Head 3

If alive or still in existence, the employer, or any of the employers, who

established the scheme and any person by whom that employer, or any

of those employers, has been directly or indirectly succeeded in relation

10

to the provision of benefits under the scheme.

Head 4

Any employer of employees to or in respect of whom benefits are, or

are to be, provided under the scheme.

Head 5

15

If there are one or more trustees of the scheme who are not resident in

the United Kingdom, that trustee or each of those trustees.

400     

Interpretation

In this Chapter—

“employer-financed retirement benefits scheme” has the meaning

20

given by section 393A;

“relevant benefits” has the meaning given by section 393B; and

“responsible person” has the meaning given by section 399A.”

(12)   

In Part 2 of Schedule 1 to ITEPA 2003 (defined expressions), insert at the

appropriate places—

25

 

“employer-financed retirement benefits

section 393A”

 
 

scheme (in Chapter 2 of Part 6)

  
 

“relevant benefits (in Chapter 2 of Part

section 393B”

 
 

6)

  
 

“responsible person (in Chapter 2 of

section 399A”.

 

30

 

Part 6)

  

Chapter 7

Compliance

Information

237     

Registered pension scheme return

35

(1)   

The Inland Revenue may, in relation to any tax year, by notice require the

scheme administrator of a registered pension scheme—

(a)   

to make and deliver to the Inland Revenue a return containing any

information reasonably required by the notice, and

 

 

Finance Bill
Part 4 — Pension schemes etc
Chapter 7 — Compliance

196

 

(b)   

to deliver with the return any accounts, statements or other documents

relating to information contained in the return which may reasonably

be required by the notice.

(2)   

The information that may be required to be included in the return is any

information relating to—

5

(a)   

contributions made under the pension scheme,

(b)   

transfers of sums or assets held for the purposes of, or representing

accrued rights under, another pension scheme so as to become held for

the purposes of, or to represent rights under, the pension scheme,

(c)   

income and gains derived from investments or deposits held for the

10

purposes of the pension scheme,

(d)   

other receipts of the pension scheme,

(e)   

the sums and other assets held for the purposes of the pension scheme,

(f)   

the liabilities of the pension scheme,

(g)   

the payment of benefits by the pension scheme,

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(h)   

transfers of sums or assets held for the purposes of, or representing

accrued rights under, the pension scheme so as to become held for the

purposes of, or to represent rights under, another pension scheme,

(i)   

other expenditure of the pension scheme,

(j)   

the membership of the pension scheme, or

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(k)   

any other matter relating to the administration of the pension scheme.

(3)   

The information that may be required to be included in the return may be

limited to information concerning any particular arrangement or

arrangements under the pension scheme.

(4)   

The notice must specify the period to be covered by the return.

25

(5)   

The period may be—

(a)   

the whole or any specified part of the tax year, or

(b)   

if audited accounts of the pension scheme have been prepared for any

period or periods ending in the tax year, the period or periods covered

by the accounts.

30

(6)   

“Audited accounts” means accounts audited by a person of a description

specified in regulations made by the Board of Inland Revenue.

(7)   

A return relating to the whole or part of, or to a period or periods ending in, a

tax year must be delivered—

(a)   

where the notice requiring the return is given after the 31st October in

35

the next tax year, before the end of the period of three months

beginning with the day on which the notice is given, and

(b)   

otherwise, not later than the 31st January in the next tax year (but

subject as follows).

(8)   

If, in a case within paragraph (b) of subsection (7), the winding-up of the

40

pension scheme has been completed before 31st October in the next tax year,

the return must be delivered before the end of the period of three months

beginning with the day on which the winding-up is completed.

(9)   

But subsection (8) does not apply if the end of that period is before the end of

the period of three months beginning with the day on which the notice is given;

45

and in that case the return must be delivered before the end of that period.

 

 

Finance Bill
Part 4 — Pension schemes etc
Chapter 7 — Compliance

197

 

238     

Information: general requirements

(1)   

The Board of Inland Revenue may by regulations make provision requiring

persons of a prescribed description—

(a)   

to provide to the Inland Revenue information of a prescribed

description relating to any of the matters mentioned in subsection (2),

5

and

(b)   

to preserve for a prescribed period any documents relating to such

information.

(2)   

Those matters are—

(a)   

any matter relating to a registered pension scheme,

10

(b)   

any matter relating to a pension scheme which has ceased to be a

registered pension scheme,

(c)   

any matter relating to a pension scheme in relation to which an

application for registration has been made,

(d)   

any matter relating to an annuity purchased with sums or assets held

15

for the purposes of a registered pension scheme,

(e)   

the coming into operation of an employer-financed retirement benefits

scheme, and

(f)   

the payment of relevant benefits under an employer-financed

retirement benefits scheme.

20

(3)   

In subsection (2)—

   

“employer-financed retirement benefits scheme”, and

   

“relevant benefits”,

   

have the same meaning as in Chapter 2 of Part 6 of ITEPA 2003 (see sections

393A and 393B of that Act).

25

(4)   

The Board of Inland Revenue may by regulations make provision—

(a)   

requiring scheme administrators of registered pension schemes or

other persons of a prescribed description to provide information of a

prescribed description to persons of such of the descriptions mentioned

in subsection (5) as are prescribed, or

30

(b)   

requiring persons of such of the descriptions specified in subsection (5)

as are prescribed to provide information of a prescribed description to

the scheme administrators of registered pension schemes.

(5)   

Those persons are—

(a)   

members of a registered pension scheme,

35

(b)   

persons who have ceased to be members of a registered pension

scheme,

(c)   

persons to whom benefits under a registered pension scheme are being,

or have been, paid,

(d)   

the personal representatives of any person within paragraphs (a) to (c),

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and

(e)   

insurance companies who pay annuities purchased with sums or assets

held for the purposes of registered pension schemes.

(6)   

“Prescribed”, in relation to regulations, means prescribed by the regulations.

 

 

 
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