|
| |
|
or made pursuant to a written application received by or on behalf of |
| |
the scheme administrator of the pension scheme before that time. |
| |
(4) | To the extent that the amount arrived at under paragraph 3(2) in relation to |
| |
the arrangement is attributable to contributions other than relevant |
| |
additional voluntary contributions it is a protected pension input amount to |
| 5 |
the extent specified in sub-paragraph (5) if the individual has been an active |
| |
member of the pension scheme by reference to the arrangement since before |
| |
22 April 2009 and until the relevant end date. |
| |
(5) | That amount is a protected pension input amount to the extent that it is |
| |
attributable to contributions paid— |
| 10 |
(a) | on a quarterly or more frequent basis since before 22 April 2009 |
| |
without any failure to pay contributions payable on or after that date |
| |
on more than an insignificant number of occasions, and |
| |
(b) | at a rate which has not increased during the period beginning with |
| |
that date and ending with the relevant end date otherwise than in |
| 15 |
accordance with an agreement made before noon on 22 April 2009 or |
| |
made pursuant to a written application received by or on behalf of |
| |
the scheme administrator of the pension scheme before that time. |
| |
(6) | In this paragraph “the relevant end date” means the end of the tax year or, if |
| |
earlier, the time when the individual ceases to be an active member of the |
| 20 |
pension scheme by reference to the arrangement. |
| |
Protected pension input amounts: other existing money purchase arrangements under other |
| |
| |
11 (1) | This paragraph applies in respect of a money purchase arrangement, other |
| |
than a cash balance arrangement, if— |
| 25 |
(a) | the arrangement is under a scheme other than an occupational |
| |
pension scheme or a public service pension scheme and does not |
| |
form part of a group personal pension scheme, and |
| |
(b) | the individual has been an active member of the pension scheme by |
| |
reference to the arrangement since before 22 April 2009 and until the |
| 30 |
| |
(2) | The amount arrived at under paragraph 3(2) in relation to the arrangement |
| |
is a protected pension input amount to the extent that it is attributable to |
| |
| |
(a) | on a quarterly or more frequent basis since before 22 April 2009 |
| 35 |
without any failure to pay contributions payable on or after that date |
| |
on more than an insignificant number of occasions, and |
| |
(b) | at a rate which has not increased during the period beginning with |
| |
that date and ending with the relevant end date otherwise than in |
| |
accordance with an agreement made before that date. |
| 40 |
| |
(a) | was not an active member of the pension scheme by reference to the |
| |
arrangement immediately before 22 April 2009, but |
| |
(b) | a written application to become such an active member was received |
| |
by or on behalf of the scheme administrator of the pension scheme |
| 45 |
| |
|
| |
|
| |
|
| the references to before 22 April 2009 (and to that date) in sub-paragraphs |
| |
(1)(b) and (2) are to the date on which the individual became such an active |
| |
member pursuant to the application. |
| |
(4) | In this paragraph “the relevant end date” means the end of the tax year or, if |
| |
earlier, the time when the individual ceases to be an active member of the |
| 5 |
pension scheme by reference to the arrangement. |
| |
Protected pension input amounts: existing hybrid arrangements |
| |
12 (1) | This paragraph applies in respect of a hybrid arrangement under a pension |
| |
scheme if any one or more of paragraphs 8 to 11 would be applicable in |
| |
| 10 |
(2) | The amount arrived at under paragraph 3(2) in relation to the arrangement |
| |
is a protected pension input amount if and to the extent of the greater or |
| |
greatest amount that it would be if the arrangement were an arrangement |
| |
under whichever (if any) of paragraphs 8 to 11 are applicable in relation to it. |
| |
(3) | Paragraph 8 is applicable in relation to it as in relation to a defined benefits |
| 15 |
arrangement if, in any circumstances, the benefits that may be provided to |
| |
or in respect of the individual under it are defined benefits. |
| |
(4) | Paragraph 9 is applicable in relation to it as in relation to a cash balance |
| |
arrangement if, in any circumstances, the benefits that may be provided to |
| |
or in respect of the individual under it are cash balance benefits. |
| 20 |
(5) | Paragraph 10 or 11 is applicable in relation to it as in relation to a money |
| |
purchase arrangement other than a cash balance arrangement if, in any |
| |
circumstances, the benefits that may be provided to or in respect of the |
| |
individual under it are other money purchase benefits. |
| |
Protected pension input amounts: new and re-activated arrangements |
| 25 |
13 (1) | This paragraph applies in respect of an arrangement if— |
| |
(a) | the arrangement is made or re-activated on or after 22 April 2009, |
| |
| |
(i) | is under an occupational pension scheme or forms part of a |
| |
group personal pension scheme and (in either case) relates to |
| 30 |
an employment of the individual, or |
| |
(ii) | is a public service pension scheme, |
| |
(c) | there is no material change in the rules of the pension scheme under |
| |
which benefits are calculated under the arrangement in the relevant |
| |
period or any such material change in the relevant period affects at |
| 35 |
least 50 active members of the pension scheme, and |
| |
(d) | throughout the relevant period there are at least 20 persons in respect |
| |
of whom arrangements subsist under the pension scheme under |
| |
which benefits are accruing on the same basis as those under the |
| |
| 40 |
(2) | If the arrangement falls within sub-paragraph (1)(b)(i), this paragraph does |
| |
not apply in respect of it if— |
| |
(a) | the provision of benefits under it is not part of the normal pattern of |
| |
pension provision made by the person who is the employer in |
| |
relation to the employment of the individual for the employees of the |
| 45 |
| |
|
| |
|
| |
|
(b) | the persons mentioned in sub-paragraph (1)(d) are not employees of |
| |
| |
(3) | “The relevant period” is the period— |
| |
(a) | beginning when the arrangement is made or re-activated, and |
| |
(b) | ending at the same time as the tax year or, if earlier, the time when |
| 5 |
the individual ceases to be an active member of the pension scheme |
| |
by reference to the arrangement. |
| |
(4) | The amount arrived at under paragraph 3(2) in relation to the arrangement |
| |
is a protected pension input amount except to the extent that it is attributable |
| |
to the payment of added years contributions or additional voluntary |
| 10 |
| |
(5) | “Added years contributions” are contributions paid with a view to securing |
| |
that the calculation of benefits under the arrangement is by reference to a |
| |
period of service in excess of pensionable service by the individual. |
| |
(6) | An arrangement relates to an employment of the individual if— |
| 15 |
(a) | the earnings by reference to which benefits under the arrangement |
| |
are calculated are earnings from the employment, or |
| |
(b) | the person who is the employer in relation to the employment pays |
| |
contributions under the arrangement in respect of the individual. |
| |
(7) | An arrangement is “re-activated” if the individual, having ceased to be an |
| 20 |
active member of the pension scheme by reference to the arrangement, again |
| |
| |
Protected pension input amounts: anti-avoidance |
| |
14 | No amount is a protected pension input amount by virtue of any of |
| |
paragraphs 8 to 13 if the individual is during the tax year a party to a scheme |
| 25 |
the main purpose, or one of the main purposes, of which is to avoid or |
| |
reduce liability to the special annual allowance charge, the annual allowance |
| |
charge or the lifetime allowance charge. |
| |
Relevant refunded amounts |
| |
15 (1) | The amount arrived at under paragraph 3(2) in relation to an arrangement is |
| 30 |
a relevant refunded amount to the extent that it does not exceed the amount |
| |
of a contributions refund lump sum paid to the individual (or the personal |
| |
representatives of the individual). |
| |
(2) | A lump sum is a contributions refund lump sum if— |
| |
(a) | it is paid to the individual by a pension scheme in respect of an |
| 35 |
| |
(b) | it is not a lump sum of any of the descriptions listed in section 166(1) |
| |
| |
(c) | it is paid during the period of one year beginning immediately after |
| |
| 40 |
(d) | its amount does not exceed the adjusted contributions amount for |
| |
| |
(e) | the individual is a high-income individual for the tax year. |
| |
(3) | The adjusted contributions amount for the tax year is the amount of any |
| |
relevant relievable pension contributions less any relevant deductions. |
| 45 |
|
| |
|
| |
|
(4) | “Relevant relievable pension contributions” are contributions which— |
| |
(a) | are relievable pension contributions in relation to the individual, and |
| |
(b) | are paid to the pension scheme under the arrangement in the tax |
| |
| |
| 5 |
(5) | If the pension scheme is an occupational pension scheme or a public service |
| |
pension scheme or forms part of a group personal pension scheme, |
| |
contributions are relevant relievable pension contributions only if they— |
| |
(a) | are additional voluntary contributions, and |
| |
(b) | are not relevant additional voluntary contributions within the |
| 10 |
meaning of paragraph 9(3) or 10(3). |
| |
(6) | If the pension scheme is not an occupational pension scheme or a public |
| |
service pension scheme and does not form part of a group personal pension |
| |
| |
(a) | contributions are not relevant relievable pension contributions if |
| 15 |
they fall within paragraph 11(2), and |
| |
(b) | if the tax year is the tax year 2009-10, contributions paid before 22 |
| |
April 2009 are not relevant relievable pension contributions if they |
| |
were paid pursuant to an agreement for the payment of |
| |
contributions on a quarterly or more frequent basis. |
| 20 |
(7) | “Relevant deductions” are— |
| |
(a) | the amount of any previous contributions refund lump sum |
| |
previously paid by the pension scheme since the end of the tax year |
| |
in respect of the arrangement, |
| |
(b) | the amount of any pension debit to which the rights of the individual |
| 25 |
under the arrangement became subject in the tax year, |
| |
(c) | where during the tax year there was a transfer relating to the |
| |
individual of any sums or assets held for the purposes of, or |
| |
representing accrued rights under, the arrangement so as to become |
| |
held for the purposes of, or to represent rights under any other |
| 30 |
pension scheme that is a registered pension scheme or a qualifying |
| |
recognised overseas pension scheme, the amount of any sums, and |
| |
the market value of any assets, transferred, and |
| |
(d) | the amount crystallised by any benefit crystallisation events which |
| |
occurred in relation to the individual and the arrangement in the tax |
| 35 |
| |
Pre-22 April 2009 pension input amount |
| |
16 (1) | This paragraph makes provision for the extent (if any) to which the amount |
| |
arrived at under paragraph 3(2) in relation to an arrangement is a pre-22 |
| |
April 2009 pension input amount. |
| 40 |
(2) | In relation to a defined benefits arrangement or cash balance arrangement, a |
| |
pre-22 April 2009 pension input amount is such proportion of what would |
| |
otherwise be the amount arrived at under paragraph 3(2) as, on a just and |
| |
reasonable apportionment, relates to the period beginning with 6 April 2009 |
| |
and ending with 21 April 2009. |
| 45 |
(3) | In relation to a money purchase arrangement that is not a cash balance |
| |
arrangement, a pre-22 April 2009 pension input amount is so much of the |
| |
amount of the contributions within section 233 of FA 2004 as are paid in the |
| |
|
| |
|
| |
|
period beginning with 6 April 2009 and ending with 21 April 2009, other |
| |
than any contributions paid pursuant to an agreement for the payment of |
| |
contributions on a quarterly or more frequent basis. |
| |
(4) | In relation to a hybrid arrangement, a pre-22 April 2009 pension input |
| |
amount is the greater or greatest of the amounts under the sub-paragraph or |
| 5 |
sub-paragraphs applicable in relation to it. |
| |
| |
(a) | sub-paragraph (2) is applicable in relation to the arrangement if, in |
| |
any circumstances, the benefits that may be provided to or in respect |
| |
of the individual under it are defined benefits or cash balance |
| 10 |
| |
(b) | sub-paragraph (3) is applicable in relation to the arrangement if, in |
| |
any circumstances, the benefits that may be provided to or in respect |
| |
of the individual under it are other money purchase benefits. |
| |
Taxation of contributions refund lump sums |
| 15 |
17 | Part 4 of FA 2004 applies in relation to a contributions refund lump sum as |
| |
if it were a short service refund lump sum in excess of the limit specified in |
| |
section 205(4)(a) of that Act (so that it is not an unauthorised payment and is |
| |
liable to tax at the rate chargeable on a short service refund lump sum). |
| |
| 20 |
18 (1) | The Treasury may by order made by statutory instrument amend paragraph |
| |
1(8) so as to vary the rate of the special annual allowance charge. |
| |
(2) | An order under sub-paragraph (1) may make provision for there to be |
| |
different rates in different circumstances. |
| |
(3) | The Treasury may by order made by statutory instrument amend |
| 25 |
| |
(4) | An order under sub-paragraph (3) may make provision having effect in |
| |
relation to times before it is made if it does not increase any person’s liability |
| |
| |
(5) | No order may be made under sub-paragraph (1) unless a draft of the |
| 30 |
statutory instrument containing it has been laid before, and approved by a |
| |
resolution of, the House of Commons. |
| |
(6) | A statutory instrument containing an order under sub-paragraph (3) is |
| |
subject to annulment in pursuance of a resolution of the House of Commons. |
| |
Currently-relieved non-UK pension schemes |
| 35 |
19 (1) | The Treasury may by order made by statutory instrument make provision |
| |
for this Schedule to apply in relation to individuals who are members of |
| |
currently-relieved non-UK pension schemes subject to such modifications as |
| |
are specified in the order. |
| |
(2) | An order under sub-paragraph (1) may— |
| 40 |
(a) | include provision having effect in relation to times before it is made, |
| |
(b) | confer discretion on the Commissioners for Her Majesty’s Revenue |
| |
and Customs or officers of Revenue and Customs, and |
| |
|
| |
|
| |
|
(c) | make different provision for different cases. |
| |
(3) | A statutory instrument containing an order under sub-paragraph (1) is |
| |
subject to annulment in pursuance of a resolution of the House of Commons. |
| |
Tax years to which Schedule applies |
| |
20 (1) | This Schedule has effect for the tax year 2009-10 and subsequent tax years |
| 5 |
(with the result that paragraph 17 has effect for the tax year 2010-11 and |
| |
| |
(2) | But the Treasury may by order make provision for this Schedule to cease to |
| |
have effect after the tax year specified in the order (but so that paragraph 17 |
| |
continues to have effect for the following tax year). |
| 10 |
| |
21 | In paragraph 49 of Schedule 36 to FA 2004 (annual allowance charge: |
| |
enhanced protection), insert at the end— |
| |
“(3) | This paragraph does not apply for the purposes of the special |
| |
annual allowance charge.” |
| 15 |
| |
| |
“group personal pension scheme” means arrangements administered |
| |
on a group basis under a personal pension scheme which are |
| |
available to employees of the same employer or of employers which |
| 20 |
are members of the same group of companies; |
| |
“personal pension scheme” means a pension scheme that is neither an |
| |
occupational pension scheme nor a public service pension scheme; |
| |
“scheme” (otherwise than in the expression “pension scheme”) includes |
| |
any arrangement, agreement, understanding, transaction or series of |
| 25 |
transactions (whether or not legally enforceable). |
| |
(2) | For the purposes of the definition of “group personal pension scheme” a |
| |
company and all of its 75% subsidiaries form a group; and if any of those |
| |
subsidiaries have 75% subsidiaries the group includes them and their 75% |
| |
subsidiaries, and so on; and for this purpose “75% subsidiary” has the |
| 30 |
meaning given by section 838 of ICTA. |
| |
(3) | Expressions used in this Schedule and in any provisions of Part 4 of FA 2004 |
| |
have the same meaning in this Schedule as they have in the provisions of |
| |
that Part in which they are used. |
| |
|
| |
|