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Finance Bill


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

206

 

(4)   

In subsection (3)(c) “relevant life policy” means—

(a)   

a group life policy as defined in section 539(3) of ICTA (life

policies excluded from charges on gains) with respect to which

the conditions in section 539A of that Act are met,

(b)   

a policy of life insurance the terms of which provide for the

5

payment of benefits on the death of a single individual and with

respect to which condition 1 in that section would be met if it

referred to that individual (rather than each of the individuals

insured under the policy) and conditions 3, 4, 5 and 7 in that

section are met, or

10

(c)   

a policy of life insurance that would be within paragraph (a) or

(b) but for the fact that it provides for a benefit which is an

excluded benefit under or by virtue of paragraph (a), (b) or (d)

of subsection (3).

(5)   

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

15

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—

“(1A)   

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

20

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

who are) the responsible person in relation to”.

(7)   

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

25

(8)   

For sections 395 to 397 substitute—

“395    

Reduction where employee has contributed

(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

30

contribution to the provision of the lump sum.

(2)   

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

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

35

the lump sum.

(3)   

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

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.”

40

(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)

the responsible person in relation to”.

(10)   

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

person”.

45

 

 

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

207

 

(11)   

For section 400 substitute—

“399A   

 Responsible person

(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.

5

(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

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

under a later head.

10

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

15

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

20

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

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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

30

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—

35

 

“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”.

 

40

 

Part 6)

  
 

 

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

208

 

Chapter 7

Compliance

Information

244     

Registered pension scheme return

(1)   

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

5

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

(b)   

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

relating to information contained in the return which may reasonably

10

be required by the notice.

(2)   

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

information relating to—

(a)   

contributions made under the pension scheme,

(b)   

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

15

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

purposes of the pension scheme,

(d)   

other receipts of the pension scheme,

20

(e)   

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

(f)   

the liabilities of the pension scheme,

(g)   

the provision of benefits by the pension scheme,

(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

25

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

(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

30

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.

(5)   

The period may be—

(a)   

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

35

(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.

(6)   

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

specified in regulations made by the Board of Inland Revenue.

40

(7)   

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

tax year must be delivered—

 

 

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

209

 

(a)   

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

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).

5

(8)   

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

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

10

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

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

245     

Information: general requirements

(1)   

The Board of Inland Revenue may by regulations make provision requiring

persons of a prescribed description—

15

(a)   

to provide to the Inland Revenue, in a form specified by the Board of

Inland Revenue, information of a prescribed description relating to any

of the matters mentioned in subsection (2), and

(b)   

to preserve for a prescribed period any documents relating to such

information.

20

(2)   

Those matters are—

(a)   

any matter relating to a registered pension scheme,

(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

25

application for registration has been made,

(d)   

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

for the purposes of a registered pension scheme,

(e)   

the coming into operation of an employer-financed retirement benefits

scheme, and

30

(f)   

the provision of relevant benefits under an employer-financed

retirement benefits scheme.

(3)   

In subsection (2)—

   

“employer-financed retirement benefits scheme”, and

   

“relevant benefits”,

35

   

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

393A and 393B of that Act).

(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

40

prescribed description to persons of such of the descriptions mentioned

in subsection (5) as are prescribed, or

(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.

45

(5)   

Those persons are—

 

 

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

210

 

(a)   

members of a registered pension scheme,

(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, provided,

5

(d)   

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

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.

10

246     

Notices requiring documents or particulars

(1)   

The Inland Revenue may by notice require any person of a description

prescribed by regulations made by the Board of Inland Revenue—

(a)   

to produce to the Inland Revenue, or to make available for inspection

by the Inland Revenue, any documents within the person’s possession

15

or power relating to any of the matters mentioned in subsection (3)

which the Inland Revenue may reasonably require, and

(b)   

to provide to the Inland Revenue any particulars relating to any of

those matters which the Inland Revenue may reasonably require.

(2)   

The Inland Revenue may by notice require any other person to produce to the

20

Inland Revenue, or to make available for inspection by the Inland Revenue,

any documents within the person’s possession or power which—

(a)   

relate to any of the matters mentioned in subsection (3), and

(b)   

were created not more than six years before the day on which the notice

is given,

25

   

and which the Inland Revenue may reasonably require.

(3)   

The matters referred to in subsections (1) and (2) are—

(a)   

any matter relating to a registered pension scheme,

(b)   

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

registered pension scheme,

30

(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

for the purposes of a registered pension scheme,

(e)   

the coming into operation of an employer-financed retirement benefits

35

scheme, and

(f)   

the provision of relevant benefits under an employer-financed

retirement benefits scheme.

(4)   

In subsection (3)—

   

“employer-financed retirement benefits scheme”, and

40

   

“relevant benefits”,

   

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

393A and 393B of that Act).

(5)   

A notice under this section must specify the period within which it is to be

complied with; and that period may not end earlier than the period of 30 days

45

beginning with the day on which the notice is given.

 

 

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

211

 

(6)   

A notice under subsection (2) must specify the pension scheme or employer-

financed retirement benefits scheme to which it relates.

(7)   

The Inland Revenue must notify the scheme administrator of the pension

scheme, or the responsible person in relation to the employer-financed

retirement benefits scheme, to which such a notice relates that the notice has

5

been given no later than the end of the period of 30 days beginning with the

day on which it is given.

(8)   

In subsection (7) “responsible person” has the same meaning as in Chapter 2 of

Part 6 of ITEPA 2003 (see section 399A of that Act).

(9)   

A person may comply with a notice under this section requiring the production

10

of a document by producing a copy of the document.

(10)   

But where a person produces a copy of a document in compliance with a notice

under this section the Inland Revenue may by notice require the production of

the original for inspection within a period specified in the notice; and that

period may not end earlier than the period of 30 days beginning with the day

15

on which the notice is given.

(11)   

The Inland Revenue may take copies of, or make extracts from, any document

produced in compliance with a notice under this section.

(12)   

A notice under this section does not require a person—

(a)   

to produce or make available for inspection any document, or

20

(b)   

to provide any particulars,

   

relating to any pending appeal by the person relating to tax.

247     

Appeal against notices

(1)   

The person to whom a notice under section 246(1) or (2) (notices requiring

documents or particulars) is given may appeal against any requirement

25

imposed by the notice.

(2)   

The appeal must be brought within the period of 30 days beginning with the

date on which the notice is given.

(3)   

The appeal is to the General Commissioners, except that the appellant may

elect (in accordance with section 46(1) of TMA 1970) to bring the appeal before

30

the Special Commissioners instead of the General Commissioners.

(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

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

35

Revenue.

(5)   

An appeal under this section against a requirement imposed by a notice must

be brought within the period of 30 days beginning with the day on which the

notice was given.

(6)   

The Commissioners before whom an appeal under this section is brought must

40

consider whether the production of the document, or provision of the

particulars, to which the appeal relates was reasonably required by the Inland

Revenue.

 

 

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

212

 

(7)   

If they decide that it was, they must confirm the notice so far as relating to that

requirement.

(8)   

If they decide that it was not, they must set aside the notice so far as relating to

that requirement.

(9)   

If the notice is confirmed it has effect in relation to the requirement to which

5

the appeal relates as if it specified as the period within which it must be

complied with the period of 30 days beginning with the day on which the

appeal was determined.

(10)   

The determination of the Commissioners is final and conclusive.

Accounting and assessment

10

248     

Accounting for tax by scheme administrators

(1)   

A scheme administrator of a registered pension scheme must make returns to

the Inland Revenue of the income tax to which the scheme administrator is

liable under this Part.

(2)   

A return is to be made for each period of three months ending with 31st March,

15

30th June, 30th September or 31st December if tax has been charged on the

scheme administrator by virtue of this Part in that period.

(3)   

A return for any period must be made before the end of the period of 45 days

beginning with the day immediately following the end of that period.

(4)   

A return must—

20

(a)   

show the income tax to which the scheme administrator is liable, and

(b)   

include such particulars of the events or other circumstances giving rise

to the liability (including particulars as to the persons to whom the

events or other circumstances relate) as are required to be included in

returns under this section by regulations made by the Board of Inland

25

Revenue.

(5)   

The income tax required to be shown in a return is due at the time by which the

return is to be made and is payable without the making of an assessment.

(6)   

The Board of Inland Revenue may by regulations make provision for and in

connection with—

30

(a)   

the charging of interest on tax due under this section which is not paid

on or before the due date,

(b)   

the making of amended returns by scheme administrators in the event

of error in a return under this section,

(c)   

the making of assessments, repayments or adjustments in cases where

35

the correct tax due under this section has not been paid on or before the

due date, and

(d)   

otherwise for supplementing this section.

(7)   

The regulations may, in particular—

(a)   

modify the operation of any provision of the Tax Acts, or

40

(b)   

provide for the application of any provision of the Tax Acts (with or

without modifications).

 

 

 
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