|
| |
|
(b) | deductible under section 75 of ICTA (expenses of management: |
| |
companies with investment business), or |
| |
(c) | brought into account at Step 1 in section 76(5) of ICTA (expenses of |
| |
| |
| for a period beginning before 6th April 2006, it is not allowed to be so |
| 5 |
deducted, so deductible, or available to be so brought into account for that |
| |
or any other period in accordance with section 185 (relief for employers in |
| |
respect of contributions paid). |
| |
Spreading of employer’s contributions |
| |
40 | The power of the Board of Inland Revenue under section 592(6) of ICTA to |
| 10 |
direct that a sum paid under an exempt approved scheme otherwise than by |
| |
way of ordinary annual contribution be treated as an expense to be spread |
| |
over such period of years as the Board think fit continues to apply in relation |
| |
to sums paid before 6th April 2006. |
| |
Taxation of annuities paid under pre-commencement retirement annuity contracts |
| 15 |
41 (1) | Chapter 9 of Part 9 of ITEPA 2003 (taxation of annuities paid under pre- |
| |
commencement retirement annuity contracts) continues to have effect until |
| |
such date as the Treasury may by order appoint. |
| |
(2) | Chapter 5A of that Part (as inserted by Schedule 31) does not have effect in |
| |
relation to any annuity to which Chapter 9 continues to apply by virtue of |
| 20 |
| |
(3) | Section 683 of ITEPA 2003 (PAYE income) has effect accordingly. |
| |
(4) | An order under sub-paragraph (1) may include any appropriate transitional |
| |
| |
Taxation of pensions accruing (but not taxed) pre-commencement and paid or received post- |
| 25 |
| |
42 (1) | If an amount which accrued but was not paid before 6th April 2006 would |
| |
have constituted taxable pension income under Chapter 7 of Part 9 of ITEPA |
| |
2003 (former approved superannuation fund annuities) had it been paid |
| |
before that date, it is to be treated for the purposes of Chapter 5A of Part 9 of |
| 30 |
ITEPA 2003 (as inserted by Schedule 31) as if it accrues when it is paid. |
| |
(2) | If an amount which accrued but was not received before 6th April 2006 |
| |
would have constituted taxable pension income under section 596 of ITEPA |
| |
2003 (personal pension annuities) had it been received before that date, it is |
| |
to be treated for the purposes of Chapter 5A of Part 9 of ITEPA 2003 (as |
| 35 |
inserted by Schedule 31) as if it accrues when it is received. |
| |
Pensions taxed pre-commencement but accruing post-commencement |
| |
43 (1) | If an amount which was paid but had not accrued before 6th April 2006 |
| |
constituted taxable pension income under Chapter 7 of Part 9 of ITEPA 2003 |
| |
(former approved superannuation fund annuities), it does not also |
| 40 |
constitute taxable pension income under Chapter 5A of Part 9 of ITEPA 2003 |
| |
(as inserted by Schedule 31) when it accrues. |
| |
(2) | If an amount which was received but had not accrued before 6th April 2006 |
| |
constituted taxable pension income under section 596 of ITEPA 2003 |
| |
(personal pension annuities), it does not also constitute taxable pension |
| 45 |
|
| |
|
| |
|
income under Chapter 5A of Part 9 of ITEPA 2003 (as inserted by Schedule |
| |
| |
Authorised surplus payments charge: pre-19th March 1986 winding-up |
| |
44 | Section 196 (authorised surplus payments charge) does not apply to any |
| |
payment made in pursuance of the winding-up of a pension scheme if the |
| 5 |
winding-up commenced before 19th March 1986. |
| |
Annual allowance charge: post-commencement contributions to discharge pre-commencement |
| |
| |
45 (1) | This paragraph applies where, during the period beginning with 6th April |
| |
2006 and ending with 7th July 2006, an employer of an individual makes a |
| 10 |
relevant consolidation contribution in respect of the individual under an |
| |
arrangement under a registered pension scheme relating to the individual. |
| |
(2) | The pension input amount in respect of the arrangement during the pension |
| |
input period of the arrangement ending in the tax year 2006-07 is to be |
| |
reduced by the amount of the contribution. |
| 15 |
(3) | “Relevant consolidation contribution” means a contribution made by way of |
| |
discharge of any liability incurred by the employer before 6th April 2006 to |
| |
pay any pension or lump sum to or in respect of the individual. |
| |
Annual allowance charge: enhanced protection |
| |
46 (1) | This paragraph applies if notice of intention to rely on paragraph 12 |
| 20 |
(enhanced protection: no relevant benefit accrual post-commencement) is |
| |
given to the Inland Revenue in accordance with regulations under that |
| |
paragraph in the case of an individual. |
| |
(2) | Sections 216 to 227 (annual allowance charge) do not apply in relation to the |
| |
individual for any tax year if that paragraph applies in relation to the |
| 25 |
individual throughout the tax year. |
| |
Saving of sections 605 and 651A of ICTA |
| |
47 | The repeal by this Act of sections 605 and 651A of ICTA (information |
| |
powers) does not affect the operation of those sections, or regulations under |
| |
them, in relation to times before 6th April 2006. |
| 30 |
Continuing operation of section 392 of ITEPA 2003 |
| |
48 | Section 392 of ITEPA 2003 (non-approved schemes: relief where no benefits |
| |
are paid or payable) continues to have effect in relation to a sum charged to |
| |
tax by virtue of section 386 of ITEPA 2003, or section 595 of ICTA, (charges |
| |
on payments to schemes) before 6th April 2006. |
| 35 |
Benefits taxable under Chapter 2 of Part 6 of ITEPA 2003: contributions taxed pre- |
| |
| |
49 (1) | Paragraphs 50 to 52 have effect where— |
| |
(a) | section 394 of ITEPA 2003 (charge on benefits from non-approved |
| |
schemes) operates (or would otherwise operate) by reason of the |
| 40 |
provision of a lump sum under an employer-financed retirement |
| |
benefits scheme on or after 6th April 2006, and |
| |
|
| |
|
| |
|
(b) | before that date an employer has paid any sum or sums, with a view |
| |
to the provision of benefits under the scheme, in respect to which an |
| |
| |
(2) | For the purposes of sub-paragraph (1)(a) section 394 of ITEPA 2003 operates |
| |
| 5 |
(a) | an amount counts as employment income of an individual under |
| |
| |
(b) | the person who is, or persons who are, the responsible person in |
| |
relation to the scheme would be chargeable to tax under Case VI of |
| |
Schedule D by virtue of that section. |
| 10 |
(3) | For the purposes of sub-paragraph (1)(b) an employee has been taxed in |
| |
respect of a sum or sums if— |
| |
(a) | the employee has been assessed to tax by virtue of section 595(1) of |
| |
ICTA (charges on payments) in respect of the sum or sums, or |
| |
(b) | the sum or sums have counted as employment income of the |
| 15 |
employee under section 386(1) of ITEPA 2003 (charges on payments). |
| |
(4) | It is to be assumed, unless the contrary is shown, that none of paragraphs 50 |
| |
| |
50 (1) | This paragraph applies if— |
| |
(a) | all of the income and gains accruing to the scheme are brought into |
| 20 |
| |
(b) | the lump sum is provided to the employee, a relative of the |
| |
employee, the personal representatives of the employee, an ex- |
| |
spouse of the employee or any other individual designated by the |
| |
| 25 |
(2) | In a case where the employer has not paid any sum or sums with a view to |
| |
the provision of benefits under the scheme since before 6th April 2006, |
| |
section 394 of ITEPA 2003 does not apply in relation to the lump sum. |
| |
(3) | In a case where the employer has paid any sum or sums with a view to the |
| |
provision of benefits under the scheme on or after 6th April 2006— |
| 30 |
(a) | section 394 of ITEPA 2003 does not apply in relation to so much of |
| |
the lump sum as does not exceed the amount of the market value of |
| |
the assets of the scheme on 5th April 2006 as increased under sub- |
| |
| |
(b) | only any sum or sums paid by the employee after that date with a |
| 35 |
view to the provision of benefits under the scheme are to be taken |
| |
into account under section 395 of ITEPA 2003 (general rules). |
| |
(4) | The amount referred to in sub-paragraph (3)(a) is to be increased by the |
| |
percentage by which the retail prices index for the month in which the lump |
| |
sum is provided is greater than that for April 2006. |
| 40 |
| |
| “ex-spouse”, in relation to an employee, means the other party to a |
| |
marriage with the employee that has been dissolved or annulled, |
| |
| |
| “relative”, in relation to an employee, means— |
| 45 |
(a) | the wife or husband of the employee, |
| |
(b) | the widow or widower of the employee, |
| |
(c) | a child of the employee, or |
| |
(d) | a dependant of the employee. |
| |
|
| |
|
| |
|
51 (1) | This paragraph applies if any of the income and gains accruing to the |
| |
scheme is not brought into charge to tax. |
| |
(2) | Section 394 of ITEPA 2003 (charge on benefits from non-approved schemes) |
| |
does not apply in relation to so much of the lump sum as does not exceed the |
| |
sum, or the aggregate of the sums, referred to in paragraph 49(1)(b). |
| 5 |
(3) | And the reference in section 395 of that Act (general rules) to the amount of |
| |
the lump sum is to the amount of the remainder of the lump sum. |
| |
52 (1) | This paragraph applies if the scheme— |
| |
(a) | was entered into before 1st September 1993, and |
| |
(b) | has not been varied on or after that date with a view to the provision |
| 10 |
| |
(2) | Section 394 of ITEPA 2003 (charge on benefits from non-approved schemes) |
| |
does not apply in relation to the lump sum. |
| |
| |
53 (1) | This paragraph applies in relation to a fund or scheme— |
| 15 |
(a) | which is not a registered pension scheme or a superannuation fund |
| |
to which section 615(3) of ICTA applies, but |
| |
(b) | to which section 151 of the Inheritance Tax Act 1984 (c. 51) (treatment |
| |
of pension rights) applied immediately before 6th April 2006. |
| |
(2) | If no contributions are made under the fund or scheme on or after that date, |
| 20 |
section 151 of the Inheritance Tax Act 1984 (c. 51) continues to apply to the |
| |
fund or scheme on and after that date for all purposes of that Act. |
| |
(3) | In any other case, paragraphs 54 and 55 apply to the fund or scheme on and |
| |
| |
54 (1) | The proportion of the assets of the fund or scheme which at any time is the |
| 25 |
protected proportion of those assets does not at that time constitute relevant |
| |
property for the purposes of Chapter 3 of Part 3 of the Inheritance Tax Act |
| |
1984 (settlements without interest in possession). |
| |
(2) | “The protected proportion” of the assets of the fund or scheme at a time is—![equation: cross[over[times[char[A],char[C],char[V]],char[V]],num[100.00000000,"100"]]](missing.gif) |
| |
| 30 |
| V is the market value of the assets of the fund or scheme at that time, |
| |
| |
| ACV is the adjusted commencement value, that is an amount equal to |
| |
the market value of the assets of the fund or scheme on 5th April |
| |
2006, but subject to the adjustments provided by sub-paragraph (3). |
| 35 |
| |
(a) | an increase by the percentage by which the retail prices index for the |
| |
month of September immediately preceding the time in question is |
| |
greater than that for April 2006, and |
| |
(b) | a reduction by the amount of any relevant payments made under the |
| 40 |
fund or scheme on or after 6th April 2006 and before that time. |
| |
(4) | “Relevant payments” are payments other than— |
| |
(a) | payments of costs or expenses, or |
| |
(b) | payments which are (or will be) income of any person for any of the |
| |
| 45 |
|
| |
|
| |
|
55 (1) | Section 151 of the Inheritance Tax Act 1984 (treatment of pension rights) |
| |
continues to apply to so much of the assets of the fund or scheme at any time |
| |
as does not exceed the amount that is the protected amount at that time. |
| |
(2) | But sub-paragraph (1) does not affect the operation of subsection (1)(d) of |
| |
section 58 of that Act (because paragraph 54 makes provision about the |
| 5 |
extent to which the assets of the fund or scheme constitute relevant property |
| |
within the meaning given by that section). |
| |
(3) | If inheritance tax has not previously been chargeable (otherwise than only |
| |
because of this paragraph) by reference to the value of the assets of the fund |
| |
or scheme on or after 6th April 2006, the protected amount is an amount |
| 10 |
equal to the amount of the market value of the assets of the fund or scheme |
| |
on 5th April 2006, but subject to the adjustments provided by sub-paragraph |
| |
| |
| |
(a) | an increase by the percentage by which the retail prices index for the |
| 15 |
month of September immediately preceding the time in question is |
| |
greater than that for April 2006, and |
| |
(b) | a reduction by the amount of any relevant payments made under the |
| |
fund or scheme on or after 6th April 2006 and before that time. |
| |
(5) | If inheritance tax would (apart from this paragraph) have previously been |
| 20 |
chargeable by reference to the value of the assets of the fund or scheme on |
| |
one or more occasions on or after 6th April 2006, the protected amount is |
| |
what it was immediately before the occasion, or (where there has been more |
| |
than one) the last occasion, on which inheritance tax would have been so |
| |
chargeable (“the relevant tax occasion”), but— |
| 25 |
(a) | reduced by the value of the property on which inheritance tax would |
| |
have been chargeable on the relevant tax occasion, and |
| |
(b) | subject to the adjustments provided by sub-paragraph (6). |
| |
(6) | The adjustments are — |
| |
(a) | an increase by the percentage by which the retail prices index for the |
| 30 |
month of September immediately preceding the time in question is |
| |
greater than that for the month in which the relevant tax occasion |
| |
| |
(b) | a reduction by the amount of any payments made under the fund or |
| |
scheme since the relevant tax occasion. |
| 35 |
(7) | “Relevant payments” are payments other than— |
| |
(a) | payments of costs or expenses, or |
| |
(b) | payments which are (or will be) income of any person for any of the |
| |
| |
|
| |
|