|
| |
|
(6) | In this section “care” means accommodation, goods or services which it |
| |
is necessary or desirable to provide to a person because of— |
| |
(a) | mental or physical impairment, or |
| |
(b) | injury, sickness or other infirmity, |
| |
| which is expected to be permanent. |
| 5 |
(7) | In this section “life annuity” means an annuity to which section 656 |
| |
(read with section 657) applies. |
| |
(8) | The Treasury may by order amend— |
| |
(a) | the definition of “immediate needs annuity” in subsection (3) |
| |
| 10 |
(b) | the definitions of “care provider” in subsection (4) above and of |
| |
“the relevant enactment” in subsection (5) above.”. |
| |
(4) | The amendment made by subsection (2) has effect in relation to accounting |
| |
periods beginning on or after 1st January 2005. |
| |
(5) | For the purposes of section 547(5A)(b) of the Taxes Act 1988 (chargeable event |
| 15 |
gains: method of charging gain to tax), an immediate needs annuity made |
| |
before 1st January 2005 shall not be taken, by virtue of the amendment made |
| |
by subsection (2), to fall or to have at any time fallen to be regarded as not |
| |
forming part of an insurance company or friendly society’s basic life assurance |
| |
and general annuity business the income and gains of which are subject to |
| 20 |
| |
(6) | The amendment made by subsection (3) has effect in relation to annual |
| |
payments made on or after 1st October 2004 (whenever the immediate needs |
| |
annuity in question was made). |
| |
145 | Corporation tax: health service bodies |
| 25 |
At the end of section 519A of the Income and Corporation Taxes Act 1988 (c. 1) |
| |
(health service bodies: exemptions from income and corporation tax) add— |
| |
“(3) | The Treasury may by order disapply subsection (1)(b) in relation to a |
| |
specified activity, or class of activity, of an NHS foundation trust. |
| |
(4) | An order under subsection (3) shall make provision for determining the |
| 30 |
amount of the profits relating to an activity that are to be charged to |
| |
corporation tax as a result of the disapplication of subsection (1)(b). |
| |
(5) | An order under subsection (3) may, in particular— |
| |
(a) | make provision for disregarding profits of less than a specified |
| |
amount in respect of a financial year or accounting period or a |
| 35 |
specified part of a financial year or accounting period; |
| |
(b) | make provision for disregarding a specified part of profits in |
| |
respect of a financial year or accounting period or a specified |
| |
part of a financial year or accounting period; |
| |
(c) | make provision for disregarding all or part of profits relating to |
| 40 |
activity in respect of which receipts or turnover (as defined by |
| |
the order) are less than a specified amount in respect of a |
| |
financial year or accounting period or a specified part of a |
| |
financial year or accounting period. |
| |
(6) | An order under subsection (3)— |
| 45 |
|
| |
|
| |
|
(a) | may apply, with or without modification, a provision of the Tax |
| |
| |
(b) | may disapply a provision of the Tax Acts, |
| |
(c) | may make provision similar to a provision of the Tax Acts, and |
| |
(d) | may make provision generally or in relation to a specified body |
| 5 |
| |
(7) | The Treasury may make an order under subsection (3) only— |
| |
(a) | in relation to an activity or class of activity that appears to the |
| |
Treasury to be of a commercial nature, |
| |
(b) | where it appears to the Treasury to be expedient for the purpose |
| 10 |
of avoiding, removing or reducing differences between— |
| |
(i) | the fiscal treatment of the body undertaking the activity, |
| |
| |
(ii) | the fiscal treatment of another body or class of body |
| |
which is of a commercial nature and which undertakes |
| 15 |
or might undertake the same or a similar activity, and |
| |
(c) | if a draft has been laid before, and approved by resolution of, |
| |
| |
(8) | An activity authorised under section 14(1) of the Health and Social Care |
| |
(Community Health and Standards) Act 2003 (c. 43) shall not be treated |
| 20 |
as an activity of a commercial nature for the purposes of subsection |
| |
| |
| |
| |
| 25 |
| |
| |
| |
(1) | This Part contains tax provision about pension schemes and other similar |
| |
| 30 |
(2) | This Chapter defines some basic concepts. |
| |
(3) | As for the rest of this Part— |
| |
| Chapter 2 is about the registration and de-registration of pension |
| |
| |
| Chapter 3 is about the payments that may be made by registered pension |
| 35 |
schemes and related matters, |
| |
| Chapter 4 deals with tax reliefs and exemptions in connection with |
| |
registered pension schemes, |
| |
| Chapter 5 imposes tax charges in connection with registered pension |
| |
| 40 |
| Chapter 6 is about some schemes that are not registered pension schemes, |
| |
| Chapter 7 makes provision about compliance, and |
| |
|
| |
|
| |
|
| Chapter 8 contains interpretation and other supplementary provisions. |
| |
| |
147 | Meaning of “pension scheme” |
| |
(1) | In this Part “pension scheme” means a scheme or other arrangements, |
| |
comprised in one or more instruments or agreements, having or capable of |
| 5 |
having effect so as to provide benefits to or in respect of persons— |
| |
| |
| |
(c) | on having reached a particular age, |
| |
(d) | on the onset of serious ill-health or incapacity, or |
| 10 |
(e) | in similar circumstances. |
| |
(2) | A pension scheme is a registered pension scheme for the purposes of this Part |
| |
at any time if it is at that time registered under Chapter 2. |
| |
(3) | In this Part “public service pension scheme” means a pension scheme— |
| |
(a) | established by or under any enactment, |
| 15 |
(b) | approved by a relevant governmental or Parliamentary person or body, |
| |
| |
(c) | specified in an order made by the Treasury. |
| |
(4) | In subsection (3) “a relevant governmental or Parliamentary person or body” |
| |
| 20 |
(a) | a Minister of the Crown or a government department, |
| |
(b) | the Scottish Parliament, the Scottish Parliamentary Corporate Body or |
| |
a member of the Scottish Executive, |
| |
(c) | the National Assembly for Wales, or |
| |
(d) | the Northern Ireland Assembly, the Northern Ireland Assembly |
| 25 |
Commission, a Northern Ireland Minister, the head of a Northern |
| |
Ireland department or a Northern Ireland department. |
| |
(5) | In this Part “occupational pension scheme” means a pension scheme |
| |
established by an employer or employers and having or capable of having |
| |
effect so as to provide benefits to or in respect of any or all of the employees |
| 30 |
| |
(a) | that employer or those employers, or |
| |
| |
| (whether or not it also has or is capable of having effect so as to provide benefits |
| |
to or in respect of other persons). |
| 35 |
(6) | In this Part “sponsoring employer”, in relation to an occupational pension |
| |
scheme, means the employer, or any of the employers, to or in respect of any |
| |
or all of whose employees the pension scheme has, or is capable of having, |
| |
effect so as to provide benefits. |
| |
(7) | In this Part “recognised overseas pension scheme” means a pension scheme |
| 40 |
| |
(a) | is established in a country or territory, other than the United Kingdom, |
| |
prescribed by regulations made by the Board of Inland Revenue, |
| |
(b) | is regulated as a pension scheme in the country or territory in which it |
| |
| 45 |
|
| |
|
| |
|
(c) | satisfies any requirements so prescribed. |
| |
| |
(1) | In this Part “member” in relation to a pension scheme, means any active |
| |
member, pensioner member, deferred member or pension credit member of |
| |
| 5 |
(2) | For the purposes of this Part a person is an active member of a pension scheme |
| |
if there are presently arrangements made under the pension scheme for the |
| |
accrual of benefits to or in respect of the person. |
| |
(3) | For the purposes of this Part a person is a pensioner member of a pension |
| |
scheme if the person is entitled to the present payment of benefits under the |
| 10 |
pension scheme and is not an active member. |
| |
(4) | A person is a deferred member of a pension scheme if the person has accrued |
| |
rights under the pension scheme and is neither an active member nor a |
| |
| |
(5) | A person is a pension credit member of a pension scheme if the person has |
| 15 |
rights under the pension scheme which are attributable (directly or indirectly) |
| |
| |
149 | Meaning of “arrangement” |
| |
(1) | In this Part “arrangement”, in relation to a member of a pension scheme, means |
| |
an arrangement relating to the member under the pension scheme. |
| 20 |
(2) | For the purposes of this Part an arrangement is a “money purchase |
| |
arrangement” at any time if, at that time, all the benefits that may be provided |
| |
to or in respect of the member under the arrangement are cash balance benefits |
| |
or other money purchase benefits. |
| |
(3) | For the purposes of this Part a money purchase arrangement is a “cash balance |
| 25 |
arrangement” at any time if, at that time, all the benefits that may be provided |
| |
to or in respect of the member under the arrangement are cash balance benefits. |
| |
(4) | In this Part “money purchase benefits”, in relation to a member of a pension |
| |
scheme, means benefits the rate or amount of which is calculated by reference |
| |
to an amount available for the provision of benefits to or in respect of the |
| 30 |
member (whether the amount so available is calculated by reference to |
| |
payments made under the pension scheme by the member or any other person |
| |
in respect of the member or any other factor). |
| |
(5) | In this Part “cash balance benefits” means benefits the rate or amount of which |
| |
is calculated by reference to an amount available for the provision of benefits |
| 35 |
to or in respect of the member calculated otherwise than wholly by reference |
| |
to payments made under the arrangement by the member or by any other |
| |
person in respect of the member (or transfers or other credits). |
| |
(6) | For the purposes of this Part an arrangement is a “defined benefits |
| |
arrangement” at any time if, at that time, all the benefits that may be provided |
| 40 |
to or in respect of the member under the arrangement are defined benefits. |
| |
(7) | In this Part “defined benefits”, in relation to a member of a pension scheme, |
| |
means benefits which are not money purchase benefits (but which are |
| |
|
| |
|
| |
|
calculated by reference to earnings or service of the member or any other factor |
| |
other than an amount available for their provision). |
| |
(8) | For the purposes of this Part an arrangement is a “hybrid arrangement” at any |
| |
time if, at that time, all of the benefits that may be provided to or in respect of |
| |
the member under the arrangement are, depending on the circumstances, to be |
| 5 |
of one of any two or three of the following varieties— |
| |
(a) | cash balance benefits, |
| |
(b) | other money purchase benefits, and |
| |
| |
(9) | Where not all of the benefits that may be provided under an arrangement to or |
| 10 |
in respect of the member are of the same one of those varieties of benefits, the |
| |
arrangement is to be treated for the purposes of this Part as being two or three |
| |
separate arrangements one of which relates to each of the two or three varieties |
| |
of benefits that may be so provided. |
| |
| 15 |
Registration of pension schemes |
| |
| |
150 | Registration of pension schemes |
| |
(1) | An application may be made to the Inland Revenue for a pension scheme to be |
| |
| 20 |
| |
(a) | must contain any information which is reasonably required by the |
| |
Inland Revenue in any form specified by the Board of Inland Revenue, |
| |
| |
(b) | must be accompanied by a declaration that the application is made by |
| 25 |
the scheme administrator (see section 264) and any other declarations |
| |
by the scheme administrator which are reasonably required by the |
| |
| |
(3) | The declarations which the Inland Revenue may require to accompany an |
| |
application for the registration of a pension scheme include, in particular, a |
| 30 |
declaration that the instruments or agreements by which it is constituted do |
| |
not entitle any person to unauthorised payments (see section 157(5)). |
| |
(4) | On receipt of an application for a pension scheme to be registered the Inland |
| |
Revenue must decide whether or not to register the pension scheme. |
| |
(5) | The Inland Revenue’s decision must be to register the pension scheme unless |
| 35 |
| |
(a) | any information contained in the application is incorrect, or |
| |
(b) | any declaration accompanying it is false. |
| |
(6) | The Inland Revenue must notify the scheme administrator of the decision on |
| |
| 40 |
|
| |
|
| |
|
(7) | Unless the Inland Revenue’s decision is not to register the pension scheme, the |
| |
notification must state the day on and after which the pension scheme will be |
| |
a registered pension scheme. |
| |
| |
(a) | by means of which benefits under a registered pension scheme have |
| 5 |
| |
(b) | which does not provide for the immediate payment of benefits, |
| |
| is to be treated as having become a registered pension scheme on the day on |
| |
| |
(9) | Schedule 34 contains (in Part 1) provisions treating certain pension schemes in |
| 10 |
existence immediately before 6th April 2006 as registered pension schemes |
| |
(and related provisions). |
| |
151 | Persons by whom registered pension scheme may be established |
| |
(1) | An application to register a pension scheme may be made only if the pension |
| |
scheme is an occupational pension scheme or has been established by— |
| 15 |
(a) | an insurance company (see section 269), |
| |
(b) | a unit trust scheme manager, |
| |
(c) | an operator, trustee or depositary of a recognised EEA collective |
| |
| |
(d) | an authorised open-ended investment company, |
| 20 |
| |
| |
(g) | an EEA investment portfolio manager. |
| |
(2) | But subsection (1) does not apply to a public service pension scheme. |
| |
(3) | Section 152 defines terms used in subsection (1)(b) to (g). |
| 25 |
(4) | The Treasury may by order amend this section and section 152. |
| |
152 | Persons by whom scheme may be established: supplementary |
| |
(1) | This section has effect for defining terms used in section 151(1)(b) to (g). |
| |
(2) | “Unit trust scheme manager” means— |
| |
(a) | a person who has permission under Part 4 of FISMA 2000 to manage |
| 30 |
unit trust schemes authorised under section 243 of FISMA 2000, or |
| |
(b) | a firm which has permission under paragraph 4 of Schedule 4 to FISMA |
| |
2000 (as a result of qualifying for authorisation under paragraph 2 of |
| |
that Schedule: Treaty firms) to manage unit trust schemes authorised |
| |
| 35 |
(3) | “Recognised EEA collective investment scheme” means a collective investment |
| |
scheme (within the meaning given by section 235 of FISMA 2000) which is |
| |
recognised by virtue of section 264 of FISMA 2000 (schemes constituted in |
| |
| |
(4) | “Authorised open-ended investment company” has the meaning given by |
| 40 |
section 237(3) of FISMA 2000. |
| |
(5) | “Building society” means a building society within the Building Societies Act |
| |
| |
|
| |
|
| |
|
| |
(a) | a person falling within section 840A(1)(b) of ICTA (persons, other than |
| |
building societies etc. permitted to accept deposits), or |
| |
(b) | a body corporate which is a subsidiary or holding company of a person |
| |
falling within section 840A(1)(b) of ICTA or is a subsidiary of the |
| 5 |
holding company of such a person. |
| |
| In paragraph (b) “subsidiary” and “holding company” are to be read in |
| |
accordance with section 736 of the Companies Act 1985 (c. 6) or Article 4 of the |
| |
Companies (Northern Ireland) Order 1986 (S.I. 1986/1032 (N.I. 6)). |
| |
(7) | “EEA investment portfolio manager” means an institution which— |
| 10 |
(a) | is an EEA firm of the kind mentioned in paragraph 5(a), (b) or (c) of |
| |
Schedule 3 to FISMA 2000 (certain credit and financial institutions), |
| |
(b) | qualifies for authorisation under paragraph 12(1) or (2) of that |
| |
| |
(c) | has permission under FISMA 2000 to manage portfolios of investments. |
| 15 |
153 | Appeal against decision not to register |
| |
(1) | This section applies where, on an application for a pension scheme to be |
| |
registered, the Inland Revenue’s decision is not to register the pension scheme. |
| |
(2) | The scheme administrator may appeal against the decision. |
| |
(3) | The appeal is to the General Commissioners, except that the scheme |
| 20 |
administrator may elect (in accordance with section 46(1) of TMA 1970) to |
| |
bring the appeal before the Special Commissioners instead of the General |
| |
| |
(4) | Paragraphs 1, 2, 8 and 9 of Schedule 3 to TMA 1970 (rules for assigning |
| |
proceedings to General Commissioners) have effect to identify the General |
| 25 |
Commissioners before whom an appeal under this section is to be brought, but |
| |
subject to modifications specified in an order made by the Board of Inland |
| |
| |
(5) | An appeal under this section against a decision must be brought within the |
| |
period of 30 days beginning with the day on which the scheme administrator |
| 30 |
was notified of the decision. |
| |
(6) | The Commissioners before whom an appeal under this section is brought must |
| |
consider whether the pension scheme ought to have been registered by the |
| |
| |
(7) | If they decide that the pension scheme ought not to have been registered by the |
| 35 |
Inland Revenue, they must dismiss the appeal. |
| |
(8) | If they decide that the pension scheme ought to have been registered by the |
| |
Inland Revenue, the pension scheme is to be treated as having been registered |
| |
on such date as the Commissioners determine (but subject to any further |
| |
appeal or any determination on, or in consequence of, a case stated). |
| 40 |
| |
| |
(1) | The Inland Revenue may withdraw the registration of a pension scheme. |
| |
|
| |
|