|
| |
|
259 | Winding-up to facilitate payment of lump sums |
| |
(1) | This section applies where the winding-up of a registered pension scheme has |
| |
begun and the Inland Revenue considers the pension scheme is being wound |
| |
up wholly or mainly for the purpose specified in subsection (2). |
| |
(2) | That purpose is facilitating the payment of winding-up lump sums or winding- |
| 5 |
up lump sum death benefits (or both) under the pension scheme. |
| |
(3) | The scheme administrator is liable to a penalty not exceeding the relevant |
| |
| |
(4) | The relevant amount is £3,000 in respect of— |
| |
(a) | each member to whom a winding-up lump sum is paid under the |
| 10 |
| |
(b) | each member in respect of whom a winding-up lump sum death benefit |
| |
is paid under the pension scheme. |
| |
260 | Transfers to insured schemes |
| |
(1) | This section applies where sums held for the purposes of, or representing |
| 15 |
accrued rights under, a registered pension scheme (“the transferor scheme”) |
| |
are transferred so as to become held for the purposes of, or to represent rights |
| |
under, a registered pension scheme that is an insured scheme (“the transferee |
| |
| |
(2) | The scheme administrator of the transferor scheme is liable to a penalty not |
| 20 |
exceeding £3,000 unless the sums are transferred either to the scheme |
| |
administrator of the transferee scheme or to a relevant insurance company. |
| |
| |
| “insured scheme” means a pension scheme all the income and other assets |
| |
of which are invested in policies of insurance, and |
| 25 |
| “relevant insurance company” means an insurance company that issued |
| |
any of the policies of insurance. |
| |
Discharge of tax liability: good faith |
| |
261 | Lifetime allowance charge |
| |
(1) | This section applies where the scheme administrator of a registered pension |
| 30 |
scheme is liable to the lifetime allowance charge in respect of a benefit |
| |
| |
(2) | The scheme administrator may apply to the Inland Revenue for the discharge |
| |
of the scheme administrator’s liability to the lifetime allowance charge in |
| |
respect of the benefit crystallisation event on the ground mentioned in |
| 35 |
| |
| |
(a) | the scheme administrator reasonably believed that there was no |
| |
liability to the lifetime allowance charge in respect of the benefit |
| |
crystallisation event, and |
| 40 |
(b) | in all the circumstances of the case, it would not be just and reasonable |
| |
for the scheme administrator to be liable to the lifetime allowance |
| |
charge in respect of the benefit crystallisation event. |
| |
|
| |
|
| |
|
(4) | On receiving an application under subsection (2), the Inland Revenue must |
| |
decide whether to discharge the scheme administrator’s liability to the lifetime |
| |
allowance charge in respect of the benefit crystallisation event. |
| |
(5) | The scheme administrator may apply to the Inland Revenue for the discharge |
| |
of part of the scheme administrator’s liability to the lifetime allowance charge |
| 5 |
in respect of the benefit crystallisation event on the ground mentioned in |
| |
| |
| |
(a) | the scheme administrator reasonably believed that the amount of the |
| |
lifetime allowance charge in respect of the benefit crystallisation event |
| 10 |
was less than the actual amount, and |
| |
(b) | in all the circumstances of the case, it would not be just and reasonable |
| |
for the scheme administrator to be liable to an amount (“the excess |
| |
amount”) equal to the difference between the amount which the |
| |
scheme administrator believed to be the amount of the charge and the |
| 15 |
| |
(7) | On receiving an application under subsection (5), the Inland Revenue must |
| |
decide whether to discharge the scheme administrator’s liability to the lifetime |
| |
allowance charge in respect of the excess amount (or part of the excess |
| |
| 20 |
(8) | The discharge of the scheme administrator’s liability to the lifetime allowance |
| |
charge (or to the excess amount or part of the excess amount) does not affect |
| |
the liability of any other person to the lifetime allowance charge. |
| |
(9) | The Inland Revenue must notify the scheme administrator of the decision on |
| |
an application under this section. |
| 25 |
(10) | Regulations made by the Board of Inland Revenue may make provision |
| |
supplementing this section; and the regulations may in particular make |
| |
provision as to the time limits for the making of an application. |
| |
262 | Unauthorised payments surcharge and scheme sanction charge |
| |
(1) | This section applies where— |
| 30 |
(a) | a person is liable to the unauthorised payments surcharge in respect of |
| |
an unauthorised payment, or |
| |
(b) | the scheme administrator of a registered pension scheme is liable to the |
| |
scheme sanction charge in respect of a scheme chargeable payment. |
| |
(2) | The person liable to the unauthorised payments surcharge may apply to the |
| 35 |
Inland Revenue for the discharge of the person’s liability to the unauthorised |
| |
payments surcharge in respect of the unauthorised payment on the ground |
| |
mentioned in subsection (3). |
| |
(3) | The ground is that in all the circumstances of the case, it would be not be just |
| |
and reasonable for the person to be liable to the unauthorised payments |
| 40 |
surcharge in respect of the payment. |
| |
(4) | On receiving an application by a person under subsection (2) the Inland |
| |
Revenue must decide whether to discharge the person’s liability to the |
| |
unauthorised payments surcharge in respect of the payment. |
| |
(5) | The scheme administrator may apply to the Inland Revenue for the discharge |
| 45 |
of the scheme administrator’s liability to the scheme sanction charge in respect |
| |
|
| |
|
| |
|
of a scheme chargeable payment on the ground mentioned in subsection (6) or |
| |
| |
(6) | In the case of a scheme chargeable payment which is treated as being an |
| |
unauthorised member payment by section 168 (assignment), the ground is |
| |
that, in all the circumstances of the case, it would not be just and reasonable for |
| 5 |
the scheme administrator to be liable to the scheme sanction charge. |
| |
(7) | In any other case, the ground is that— |
| |
(a) | the scheme administrator reasonably believed that the unauthorised |
| |
payment was not a scheme chargeable payment, and |
| |
(b) | in all the circumstances of the case, it would not be just and reasonable |
| 10 |
for the scheme administrator to be liable to the scheme sanction charge |
| |
in respect of the unauthorised payment. |
| |
(8) | On receiving an application under subsection (5), the Inland Revenue must |
| |
decide whether to discharge the scheme administrator’s liability to the scheme |
| |
sanction charge in respect of the unauthorised payment. |
| 15 |
(9) | The Inland Revenue must notify the applicant of the decision on an application |
| |
| |
(10) | Regulations made by the Board of Inland Revenue may make provision |
| |
supplementing this section; and the regulations may in particular make |
| |
provision as to the time limits for the making of an application. |
| 20 |
263 | Appeal against decision on discharge of liability |
| |
(1) | This section applies where the Inland Revenue— |
| |
(a) | decides to refuse an application under section 261(2) (discharge of |
| |
liability to lifetime allowance charge) or section 262 (discharge of |
| |
liability to unauthorised payments surcharge or scheme sanction |
| 25 |
| |
(b) | on an application under section 261(5), decides to refuse the application |
| |
or to discharge the applicant’s liability to the lifetime allowance charge |
| |
in respect of part only of the excess amount. |
| |
(2) | The applicant may appeal against the decision. |
| 30 |
(3) | The appeal is to the General Commissioners, except that the person may elect |
| |
(in accordance with section 46(1) of TMA 1970) to bring the appeal before 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 |
| 35 |
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 applicant was given |
| 40 |
notification of the decision. |
| |
(6) | The Commissioners before whom an appeal under subsection (1)(a) is brought |
| |
must consider whether the applicant’s liability to the lifetime allowance |
| |
charge, unauthorised payments surcharge or scheme sanction charge ought to |
| |
| 45 |
|
| |
|
| |
|
(7) | If they consider that the applicant’s liability ought not to have been discharged, |
| |
they must dismiss the appeal. |
| |
(8) | If they consider that the applicant’s liability ought to have been discharged, |
| |
they must grant the application. |
| |
(9) | The Commissioners before whom an appeal under subsection (1)(b) is brought |
| 5 |
must consider whether the applicant’s liability to the lifetime allowance charge |
| |
ought to have been discharged in respect of the excess amount or a greater part |
| |
| |
(10) | If they consider that the applicant’s liability ought not to have been discharged |
| |
in respect of the excess amount or a greater part of the excess amount, they |
| 10 |
| |
(11) | If they consider that the applicant’s liability ought to have been discharged in |
| |
respect of the excess amount or a greater part of the excess amount, they must |
| |
discharge the applicant’s liability in respect of the excess amount or that part |
| |
| 15 |
| |
264 | Meaning of “scheme administrator” |
| |
(1) | References in this Part to the scheme administrator, in relation to a pension |
| |
scheme, are to the person who is, or persons who are, appointed in accordance |
| |
with the rules of the pension scheme to be responsible for the discharge of the |
| 20 |
functions conferred or imposed on the scheme administrator of the pension |
| |
scheme by and under this Part. |
| |
(2) | But a person cannot be the person who is, or one of the persons who are, the |
| |
scheme administrator of a pension scheme unless the person— |
| |
(a) | is resident in the United Kingdom or another state which is a member |
| 25 |
State or a non-member EEA State, and |
| |
(b) | has made the required declaration to the Inland Revenue. |
| |
(3) | “The required declaration” is a declaration that the person— |
| |
(a) | understands that the person will be responsible for discharging the |
| |
functions conferred or imposed on the scheme administrator of the |
| 30 |
pension scheme by and under this Part, and |
| |
(b) | intends to discharge those functions at all times, whether resident in the |
| |
United Kingdom or another state which is a member State or a non- |
| |
| |
(4) | “Non-member EEA State” means a State which is a contracting party to the |
| 35 |
Agreement on the European Economic Area signed at Oporto on 2nd May 1992 |
| |
(as adjusted by the Protocol signed at Brussels on 17th March 1993) but which |
| |
| |
265 | Liability of scheme administrator |
| |
(1) | Any liability of a person who is, or of any of the persons who are, the scheme |
| 40 |
administrator of a registered pension scheme ceases to be a liability of that |
| |
person on the person ceasing to be, or to be one of the persons who is, the |
| |
scheme administrator of the pension scheme. |
| |
|
| |
|
| |
|
| This subsection does not apply to a liability to pay a penalty and is subject to |
| |
| |
(2) | Where a person becomes, or becomes one of the persons who is, the scheme |
| |
administrator of a registered pension scheme, the person assumes any existing |
| |
liabilities of the scheme administrator of the pension scheme, other than any |
| 5 |
liability to pay a penalty. |
| |
(3) | Subsection (4) applies where, on the person who is or the persons who are the |
| |
scheme administrator of a registered pension scheme ceasing to be the scheme |
| |
administrator, there is no scheme administrator of the pension scheme. |
| |
(4) | Any liability of the person or persons as scheme administrator remains a |
| 10 |
liability of that person or those persons as if still the scheme administrator |
| |
(unless dead or having ceased to exist) until another person becomes, or other |
| |
persons become, the scheme administrator of the pension scheme. |
| |
(5) | But a person who retains, or persons who retain, any liability by virtue of |
| |
subsection (4) may apply to the Inland Revenue to be released from the |
| 15 |
| |
(6) | On receipt of the application the Inland Revenue must decide whether or not |
| |
to release the applicant or applicants from the liability and must notify the |
| |
applicant, or each of the applicants, of the decision. |
| |
(7) | If the decision is not to release the applicant or applicants from the liability the |
| 20 |
applicant or applicants may appeal against the decision. |
| |
(8) | The appeal is to the General Commissioners, except that the applicant or |
| |
applicants may elect (in accordance with section 46(1) of TMA 1970) to bring |
| |
the appeal before the Special Commissioners instead of the General |
| |
| 25 |
(9) | The appeal must be brought within the period of 30 days beginning with the |
| |
day on which the applicant was notified of the decision. |
| |
(10) | 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 |
| 30 |
subject to modifications specified in an order made by the Board of Inland |
| |
| |
(11) | The Commissioners before whom an appeal under this section is brought must |
| |
consider whether the applicant or applicants ought to have been released from |
| |
| 35 |
(12) | If they decide that the applicant or applicants ought not to have been released |
| |
from the liability, they must dismiss the appeal. |
| |
(13) | If they decide that the applicant or applicants ought to have been released from |
| |
the liability, the applicant is, or applicants are, to be treated as having been |
| |
released from the liability (but subject to any further appeal or any |
| 40 |
determination on, or in consequence of, a case stated). |
| |
266 | Trustees etc. liable as scheme administrator |
| |
(1) | This section applies in relation to a registered pension scheme if— |
| |
(a) | there is no scheme administrator of the pension scheme and no-one |
| |
who remains subject to the liabilities of the scheme administrator by |
| 45 |
|
| |
|
| |
|
virtue of section 265(4) (continuation of liability where no scheme |
| |
| |
(b) | the person who is, or all the persons who are, the scheme administrator |
| |
of the pension scheme or remain so subject cannot be traced, or |
| |
(c) | the person who is, or all the persons who are, the scheme administrator |
| 5 |
of the pension scheme or remain so subject are in serious default. |
| |
(2) | Any person who assumes liability by reason of this section applying in relation |
| |
| |
(a) | is liable to pay any tax (and any interest on tax) due from the scheme |
| |
administrator of the pension scheme by virtue of this Part, and |
| 10 |
(b) | is responsible for the discharge of all other obligations imposed on the |
| |
scheme administrator of the pension scheme by or under this Part. |
| |
| |
(a) | the references in paragraph (a) to tax, and interest on tax, include any |
| |
that has become due before this section applied in relation to the |
| 15 |
pension scheme and remains unpaid, and |
| |
(b) | the reference in paragraph (b) to obligations includes any that have |
| |
become due before this section applied in relation to the pension |
| |
scheme and remain unsatisfied, other than any liability to pay a penalty |
| |
which has become due before this section so applied. |
| 20 |
(4) | The following heads specify the persons who assume liability by reason of this |
| |
section applying in relation to the pension scheme; but if— |
| |
(a) | a person assumes, or persons assume, liability by virtue of being |
| |
specified under one head, and |
| |
(b) | that person, or any of those persons, can be traced and is not in default, |
| 25 |
| no-one assumes liability by virtue of being specified under a later head. |
| |
| |
| |
If there are one or more trustees of the pension scheme who are resident in the |
| |
United Kingdom, that trustee or each of those trustees. |
| 30 |
| |
If there are one or more persons who control the management of the pension |
| |
scheme, that person or each of those persons. |
| |
| |
If alive or still in existence, the person, or any of the persons, who established |
| 35 |
the pension scheme and any person by whom that person, or any of those |
| |
persons, has been directly or indirectly succeeded in relation to the provision |
| |
of benefits under the pension scheme. |
| |
| |
If the pension scheme is an occupational pension scheme, any sponsoring |
| 40 |
| |
| |
If there are one or more trustees of the pension scheme who are not resident in |
| |
the United Kingdom, that trustee or each of those trustees. |
| |
(5) | Where a person assumes liability by reason of this section applying in relation |
| 45 |
to the pension scheme, the Inland Revenue must, as soon as is reasonably |
| |
practicable, notify the person of that fact; but failure to do so does not affect the |
| |
| |
|
| |
|
| |
|
(6) | For the purposes of this section a person is in default if the person— |
| |
(a) | has failed to pay all or any of the tax (or interest on tax) due from the |
| |
person by virtue of this Part, or |
| |
(b) | has failed to discharge any other obligation imposed on the person by |
| |
| 5 |
| and a person in default is in serious default if the Inland Revenue considers the |
| |
failure to be of a serious nature. |
| |
267 | Members liable as scheme administrator |
| |
(1) | This section applies in relation to a registered pension scheme if— |
| |
(a) | a person has, or persons have, assumed liability by reason of section 266 |
| 10 |
(trustees etc.) applying in relation to the pension scheme, |
| |
(b) | the person has, or the persons have, become liable to pay tax (or interest |
| |
on tax) which became due by virtue of section 235 (scheme sanction |
| |
charge) or section 238 (de-registration charge) before section 266 |
| |
applied in relation to the pension scheme, |
| 15 |
(c) | that person, or each of those persons, has failed (in whole or in part) to |
| |
satisfy the liability, and |
| |
(d) | that person, or each of those persons, has either died or ceased to exist |
| |
or is a person in whose case the Inland Revenue considers the person’s |
| |
failure to satisfy the liability to be of a serious nature. |
| 20 |
(2) | Any person who was a member of the pension scheme at any time during the |
| |
relevant three-year period is liable to pay the appropriate share of the unpaid |
| |
| |
(a) | any of the conditions in subsection (5) is met, and |
| |
(b) | the Inland Revenue notifies the person of the person’s liability to do so. |
| 25 |
(3) | “The relevant three-year period” is the period of three years ending with the |
| |
date on which the liability to pay the tax arose. |
| |
(4) | The “appropriate share of the unpaid amount”, in the case of a person, is![equation: cross[over[times[char[A],char[A],char[P]],times[char[A],char[A]]],times[char[U],
char[T]]]](missing.gif) |
| |
| |
| AA is an amount equal to aggregate of the amount of the sums and the |
| 30 |
market value of the assets held for the purposes of the pension scheme |
| |
at the time when the liability to pay the tax arose, |
| |
| AAP is an amount equal to so much of AA as is held for the purposes of |
| |
such of the arrangements under the pension scheme as relate to the |
| |
person or a person connected with the person, and |
| 35 |
| UT is so much of the tax (and any interest on it) as remains unpaid. |
| |
(5) | The conditions referred to in subsection (2)(a) are— |
| |
(a) | that the pension scheme was established by a person or body specified |
| |
in section 151(1)(a) to (g) (insurance companies etc.) and was not an |
| |
occupational pension scheme, |
| 40 |
(b) | that at any time during the relevant three-year period the pension |
| |
scheme received a transfer value in which there were represented |
| |
relevant personal pension contributions made by or in respect of the |
| |
| |
|
| |
|