|
| |
|
(4) | In paragraph 24(1) (conditions applying for paragraph 23), for “paragraph |
| |
23” substitute “paragraphs 22 and 23”. |
| |
(5) | In paragraph 25(2) (provisions supplementing paragraph 24), for “23(1)” |
| |
| |
Transitional provision: primary protection |
| 5 |
15 | In paragraph 11D of Schedule 36 (lump sum death benefits to be taken into |
| |
account as part of individual’s pre-commencement rights only if paid under |
| |
policy not significantly varied since 5th April 2006), after sub-paragraph (2) |
| |
| |
“(2A) | A variation of the terms of a policy of life insurance made in order |
| 10 |
to comply with the Employment Equality (Age) Regulations 2006 |
| |
or Employment Equality (Age) Regulations (Northern Ireland) |
| |
2006 (or any regulations amending or replacing them) is to be |
| |
ignored for the purposes of sub-paragraph (2). |
| |
(2B) | Where a policy of life insurance held on 5th April 2006 for the |
| 15 |
purposes of an occupational pension scheme is surrendered and a |
| |
| |
(a) | as part of a retirement-benefit activities compliance |
| |
| |
(b) | to comply with the Employment Equality (Age) |
| 20 |
Regulations 2006 or Employment Equality (Age) |
| |
Regulations (Northern Ireland) 2006 (or any regulations |
| |
amending or replacing them), |
| |
| the new policy is to be treated for the purposes of sub-paragraph |
| |
(2) as if it were the same as the old. |
| 25 |
(2C) | For this purpose a policy of life insurance is surrendered and a |
| |
new one is taken out as part of a retirement-benefit activities |
| |
| |
(a) | the surrender of the old policy and taking out of the new |
| |
policy constitute or form part of a transaction the purpose |
| 30 |
of which is to secure that the activities of the pension |
| |
scheme are limited to retirement-benefit activities within |
| |
the meaning of section 255 of the Pensions Act 2004 or |
| |
Article 232 of the Pensions (Northern Ireland) Order 2005, |
| |
| 35 |
(b) | the rights under the old policy and the new policy are not |
| |
significantly different.” |
| |
Transitional provision: enhanced protection |
| |
16 | Schedule 36 (transitional provision) is amended as follows. |
| |
17 (1) | Paragraph 12 (when enhanced protection ceases) is amended as follows. |
| 40 |
(2) | In paragraph (c) of sub-paragraph (2), for “solely for the purposes of a |
| |
permitted transfer” substitute “in permitted circumstances”. |
| |
(3) | After that sub-paragraph insert— |
| |
“(2A) | An arrangement is made in permitted circumstances if it is |
| |
| 45 |
|
| |
|
| |
|
(a) | for the purposes of a permitted transfer, |
| |
(b) | as part of a retirement-benefit activities compliance |
| |
| |
(c) | as part of an age-equality compliance exercise. |
| |
(2B) | For the purposes of sub-paragraph (2A)(b) an arrangement (“the |
| 5 |
new arrangement”) relating to an individual is made as part of a |
| |
retirement-benefit activities compliance exercise if— |
| |
(a) | it is made in connection with the cancellation of rights |
| |
under another arrangement relating to the individual (“the |
| |
| 10 |
(b) | the old arrangement and the new arrangement relate to the |
| |
| |
(c) | there is a prospective entitlement to pension death benefits |
| |
within section 167(1) or lump sum death benefits within |
| |
section 168(1) (or both) under both the old arrangement |
| 15 |
| |
(d) | the making of the new arrangement and the cancellation of |
| |
the old arrangement constitute or form part of a |
| |
transaction the purpose of which is to secure that the |
| |
activities of the pension scheme under which the |
| 20 |
arrangement is made are limited to retirement-benefit |
| |
activities within the meaning of section 255 of the Pensions |
| |
Act 2004 or Article 232 of the Pensions (Northern Ireland) |
| |
| |
(e) | the rights cancelled under the old arrangement and the |
| 25 |
rights conferred under the new arrangement are not |
| |
| |
(2C) | For the purposes of sub-paragraph (2A)(c) an arrangement (“the |
| |
new arrangement”) is made as part of an age-equality compliance |
| |
| 30 |
(a) | it is made in connection with the cancellation of rights |
| |
under another arrangement relating to the individual (“the |
| |
| |
(b) | the old arrangement and the new arrangement relate to the |
| |
| 35 |
(c) | there is a prospective entitlement to pension death benefits |
| |
within section 167(1) or lump sum death benefits within |
| |
section 168(1) (or both) under both the old arrangement |
| |
and the new arrangement, and |
| |
(d) | the new arrangement is made, and the old arrangement |
| 40 |
cancelled, in order to comply with the Employment |
| |
Equality (Age) Regulations 2006 or Employment Equality |
| |
(Age) Regulations (Northern Ireland) 2006 (or any |
| |
regulations amending or replacing them).” |
| |
(4) | In sub-paragraph (7)— |
| 45 |
| |
(b) | in paragraph (b), omit “held for the purposes of, or representing |
| |
accrued rights under, the arrangement”, and |
| |
(c) | in paragraph (c), for “those” (in both places) substitute “the”. |
| |
(5) | In paragraph (a) of sub-paragraph (8), omit— |
| 50 |
|
| |
|
| |
|
(a) | “, or two or more money purchase arrangements that are not cash |
| |
balance arrangements,”, and |
| |
| |
(6) | After paragraph (b) of that sub-paragraph insert— |
| |
“(c) | where the arrangement is a cash balance arrangement or a |
| 5 |
defined benefits arrangement relating to a present or |
| |
former employment, they are transferred in connection |
| |
with a relevant business transfer so as to become held for |
| |
the purposes of, or to represent rights under, a cash |
| |
balance arrangement or defined benefits arrangement |
| 10 |
made under a registered pension scheme or recognised |
| |
overseas pension scheme, or |
| |
(d) | where the arrangement (“the old arrangement”) is a cash |
| |
balance arrangement or a defined benefits arrangement, |
| |
they are transferred as part of a retirement-benefit |
| 15 |
activities compliance exercise so as to become held for the |
| |
purposes of, or to represent rights under, a cash balance |
| |
arrangement or defined benefits arrangement (“the new |
| |
arrangement”) relating to the same employment as the old |
| |
arrangement and made under a registered pension scheme |
| 20 |
or recognised overseas pension scheme.” |
| |
(7) | After that sub-paragraph insert— |
| |
“(8A) | For the purposes of sub-paragraph (8)(c) “relevant business |
| |
transfer” means a transfer of an undertaking or a business (or part |
| |
of an undertaking or a business) from one person to another— |
| 25 |
(a) | which involves the transfer of at least 20 employees, and |
| |
(b) | in the case of which, if the transferor and the transferee are |
| |
bodies corporate, they would not be treated as members of |
| |
the same group for the purposes of Chapter 4 of Part 10 of |
| |
| 30 |
(8B) | For the purposes of sub-paragraph (8)(d) sums or assets held for |
| |
the purposes of, or representing accrued rights under, the old |
| |
arrangement are transferred as part of a retirement-benefit |
| |
activities compliance exercise if— |
| |
(a) | there is a prospective entitlement to pension death benefits |
| 35 |
within section 167(1) or lump sum death benefits within |
| |
section 168(1) (or both) under both the old arrangement |
| |
and the new arrangement, and |
| |
(b) | the transfer constitutes or forms part of a transaction the |
| |
purpose of which is to secure that the activities of the |
| 40 |
pension scheme under which the old arrangement was |
| |
made are limited to retirement-benefit activities within the |
| |
meaning of section 255 of the Pensions Act 2004 or Article |
| |
232 of the Pensions (Northern Ireland) Order 2005.” |
| |
(8) | In sub-paragraph (9)— |
| 45 |
(a) | in paragraph (a), omit “, or each of the arrangements,” and “and” at |
| |
| |
(b) | in paragraph (b), after “(8)(b)” insert “or (d)” and after “15” insert “to |
| |
| |
|
| |
|
| |
|
(c) | after that paragraph insert “and |
| |
(c) | if the transfer is a permitted transfer by virtue of |
| |
sub-paragraph (8)(c), this paragraph (and |
| |
paragraphs 13, 15 to 17 and 17A(3)) apply as if the |
| |
arrangement to which the transfer is made were the |
| 5 |
same as that from which it is made and (if the |
| |
employment is transferred) as if the employment |
| |
with the transferee were the employment with the |
| |
| |
(9) | After that sub-paragraph insert— |
| 10 |
“(10) | The Treasury may by order amend sub-paragraph (8) (and make |
| |
other amendments consequential on any amendment of that sub- |
| |
| |
18 | In paragraph 14 (relevant contributions), after sub-paragraph (3) insert— |
| |
“(3A) | A variation of the terms of a policy made in order to comply with |
| 15 |
the Employment Equality (Age) Regulations 2006 or Employment |
| |
Equality (Age) Regulations (Northern Ireland) 2006 (or any |
| |
regulations amending or replacing them) is to be ignored for the |
| |
purposes of sub-paragraph (3). |
| |
(3B) | Where a policy of insurance on the life of the individual issued, or |
| 20 |
issued in respect of insurances made, before 6th April 2006 is |
| |
surrendered and a new one is taken out— |
| |
(a) | as part of a retirement-benefit activities compliance |
| |
| |
(b) | as part of an age-equality compliance exercise. |
| 25 |
| the new policy is to be treated for the purposes of sub-paragraph |
| |
(3) as if it were the same as the old. |
| |
(3C) | For the purposes of sub-paragraph (3B)(a) a policy is surrendered, |
| |
and a new policy of life insurance is taken out, as part of a |
| |
retirement-benefit activities compliance exercise if— |
| 30 |
(a) | the surrender of the old policy and the taking out of the |
| |
new policy constitute or form part of a transaction the |
| |
purpose of which is to secure that the activities of the |
| |
pension scheme under which the arrangement is made are |
| |
limited to retirement-benefit activities within the meaning |
| 35 |
of section 255 of the Pensions Act 2004 or Article 232 of the |
| |
Pensions (Northern Ireland) Order 2005, and |
| |
(b) | the rights under the old policy and the new policy are not |
| |
| |
(3D) | For the purposes of sub-paragraph (3B)(b) a policy is surrendered, |
| 40 |
and a new policy of life insurance is taken out, as part of an age- |
| |
equality compliance exercise if— |
| |
(a) | the old policy is surrendered, and the new policy is taken |
| |
out, in order to comply with the Employment Equality |
| |
(Age) Regulations 2006 or Employment Equality (Age) |
| 45 |
Regulations (Northern Ireland) 2006 (or any regulations |
| |
amending or replacing them), and |
| |
(b) | any significant difference between the rights under the old |
| |
policy and the rights under the new policy is attributable |
| |
|
| |
|
| |
|
to the need to comply with those Regulations (or any |
| |
regulations amending or replacing them).” |
| |
19 (1) | Paragraph 15 (relevant benefit accrual) is amended as follows. |
| |
(2) | In sub-paragraph (2), after “arrangement” (in both places) insert “which are |
| |
| 5 |
(3) | In sub-paragraph (7), for “15 and 16” substitute “16 and 17”. |
| |
Inheritance tax: lump sum death benefits |
| |
20 | In section 58 of IHTA 1984 (settlements: “relevant property”), after |
| |
| |
“(2A) | For the purposes of subsection (1)(d) above— |
| 10 |
(a) | property applied to pay lump sum death benefits within |
| |
section 168(1) of the Finance Act 2004 in respect of a member |
| |
of a registered pension scheme is to be taken to be held for the |
| |
purposes of the scheme from the time of the member’s death |
| |
until the payment is made, and |
| 15 |
(b) | property applied to pay lump sum death benefits in respect |
| |
of a member of a section 615(3) scheme is to be taken to be so |
| |
held if the benefits are paid within the period of two years |
| |
beginning with the earlier of the day on which the member’s |
| |
death was first known to the trustees or other persons having |
| 20 |
the control of the fund and the day on which they could first |
| |
reasonably be expected to have known of it.” |
| |
Benefits under employer-financed retirement benefits schemes |
| |
21 | In section 393B of ITEPA 2003 (employer-financed retirement benefits |
| |
schemes: relevant benefits), after subsection (4) insert— |
| 25 |
“(4A) | Regulations under subsection (3)(d) may include provision having |
| |
effect in relation to times before they are made.” |
| |
| |
22 (1) | In section 167(2) of FA 2004 (meaning of “pension death benefit”), for |
| |
““Pension” substitute “In this Part “pension”. |
| 30 |
(2) | In section 280(2) of that Act (index of expressions), insert at the appropriate |
| |
| |
|
23 (1) | In section 1(1) of the Pension Schemes Act 1993 (c. 48) (categories of pension |
| |
schemes), in paragraph (b) of the definition of “personal pension scheme”, |
| 35 |
omit “any of the paragraphs of”. |
| |
(2) | In section 1(1) of the Pension Schemes (Northern Ireland) Act 1993 (c. 49) |
| |
(categories of pension schemes), in paragraph (b) of the definition of |
| |
“personal pension scheme”, omit “any of the paragraphs of”. |
| |
|
| |
|
| |
|
| |
24 (1) | The amendments made by paragraphs 2 to 4 and 23 are deemed to have |
| |
come into force on 6th April 2007. |
| |
(2) | The amendment made by paragraph 5 has effect in relation to payments |
| |
made on or after 6th April 2007. |
| 5 |
(3) | The amendments made by paragraphs 6, 7(2), 9 to 11, 15 to 19 and 22 are |
| |
deemed always to have had effect. |
| |
(4) | The amendment made by paragraph 7(3) has effect in relation to reductions |
| |
occurring on or after 6th April 2007. |
| |
(5) | The amendments made by paragraph 8 have effect in relation to |
| 10 |
notifications given on or after 6th December 2006. |
| |
(6) | The amendments made by paragraph 12 have effect in relation to lump sums |
| |
paid on or after 6th April 2006. |
| |
(7) | The amendments made by paragraph 13 have effect in relation to deaths |
| |
occurring on or after 6th April 2006. |
| 15 |
(8) | The amendments made by paragraph 14 are deemed to have come into force |
| |
| |
(9) | The amendment made by paragraph 20 has effect in relation to lump sum |
| |
death benefits paid on or after 6th April 2006. |
| |
| 20 |
| |
Exemptions from stamp duty and SDRT: intermediaries, repurchases etc |
| |
| |
1 (1) | Section 80A of FA 1986 (exemption from stamp duty: sales to intermediaries) |
| |
| |
(2) | For subsections (1) to (3) substitute— |
| 25 |
“(1) | Stamp duty shall not be chargeable on an instrument transferring |
| |
stock of a particular kind on sale to a person or the person’s nominee |
| |
| |
(a) | the person is a member of a regulated market on which stock |
| |
of that kind is regularly traded; and |
| 30 |
(b) | the person is an intermediary and is recognised as such by the |
| |
market in accordance with arrangements approved by the |
| |
| |
(1A) | Stamp duty shall not be chargeable on an instrument transferring |
| |
stock of a particular kind on sale to a person or the person’s nominee |
| 35 |
| |
(a) | the person is a member of a multilateral trading facility, or a |
| |
recognised foreign exchange, on which stock of that kind is |
| |
| |
|
| |
|
| |
|
(b) | the person is an intermediary and is recognised as such by the |
| |
facility or exchange in accordance with arrangements |
| |
approved by the Commissioners; and |
| |
(c) | the sale is effected on the facility or exchange. |
| |
(1B) | Stamp duty shall not be chargeable on an instrument transferring |
| 5 |
stock of a particular kind on sale to a person or the person’s nominee |
| |
| |
(a) | the person is an intermediary who is approved for the |
| |
purposes of this section by the Commissioners; and |
| |
(b) | stock of that kind is regularly traded on a regulated market. |
| 10 |
(1C) | Stamp duty shall not be chargeable on an instrument transferring |
| |
stock of a particular kind on sale to a person or the person’s nominee |
| |
| |
(a) | the person is an intermediary who is approved for the |
| |
purposes of this section by the Commissioners; |
| 15 |
(b) | stock of that kind is regularly traded on a multilateral trading |
| |
facility or a recognised foreign exchange; and |
| |
(c) | the sale is effected on the facility or exchange. |
| |
(2) | Stamp duty shall not be chargeable on an instrument transferring |
| |
stock of a particular kind on sale to a person or the person’s nominee |
| 20 |
| |
(a) | the person is a member of a regulated market, a multilateral |
| |
trading facility or a recognised foreign options exchange; |
| |
(b) | options to buy or sell stock of that kind are regularly traded |
| |
on, and are listed by or quoted on, that market, facility or |
| 25 |
| |
(c) | the person is an options intermediary and is recognised as |
| |
such by that market, facility or exchange in accordance with |
| |
arrangements approved by the Commissioners; and |
| |
(d) | stock of that kind is regularly traded on a regulated market. |
| 30 |
(2A) | Stamp duty shall not be chargeable on an instrument transferring |
| |
stock of a particular kind on sale to a person or the person’s nominee |
| |
| |
(a) | the person is a member of a regulated market, a multilateral |
| |
trading facility or a recognised foreign options exchange; |
| 35 |
(b) | options to buy or sell stock of that kind are regularly traded |
| |
on, and are listed by or quoted on, that market, facility or |
| |
| |
(c) | the person is an options intermediary and is recognised as |
| |
such by that market, facility or exchange in accordance with |
| 40 |
arrangements approved by the Commissioners; and |
| |
(d) | the sale is effected on a relevant qualifying exchange on |
| |
which stock of that kind is regularly traded or is effected on |
| |
a relevant qualifying exchange pursuant to the exercise of a |
| |
relevant option and options to buy or sell stock of that kind |
| 45 |
are regularly traded on, and are listed by or quoted on, that |
| |
| |
| and in paragraph (d) “relevant qualifying exchange” means a |
| |
multilateral trading facility, a recognised foreign options exchange |
| |
or a recognised foreign exchange. |
| 50 |
|
| |
|