|
| |
|
(b) | in the definition of “non-licence consideration”, omit “as determined |
| |
at the time the swap arrangements are entered into”. |
| |
(5) | For subsection (5B) substitute— |
| |
“(5B) | Subsections (5C) to (5F) apply for the purposes of sections 195A to |
| |
| 5 |
| |
(a) | of the consideration given for disposal A or disposal B, |
| |
(b) | of the non-licence consideration, or |
| |
(c) | of the value of a licence comprised in disposal A or disposal |
| |
| 10 |
| is to be made as at the time the swap arrangements are entered into. |
| |
| But this is subject to subsections (5D) to (5F). |
| |
(5D) | Subsections (5E) and (5F) apply if, under the swap arrangements, |
| |
economic benefits and liabilities under the licences concerned are |
| |
treated as passing at a time (“the effective time”) which falls before |
| 15 |
or after the day on which the arrangements are entered into. |
| |
| |
(a) | of the consideration given for disposal A or disposal B, |
| |
(b) | of the non-licence consideration, or |
| |
(c) | of the value of a licence comprised in disposal A or disposal |
| 20 |
| |
| is to be made as at the effective time. |
| |
(5F) | But if the swap arrangements make provision for an increase in the |
| |
non-licence consideration to reflect the period between the effective |
| |
time and the time it is payable, the non-licence consideration is to be |
| 25 |
treated as if it were the amount found by making a corresponding |
| |
increase in the amount determined under subsection (5E).” |
| |
4 | The amendments made by this Part of this Schedule have effect in relation |
| |
to disposals made on or after 23 March 2011. |
| |
| 30 |
Reinvestment of ring fence assets |
| |
5 | After section 198H of TCGA 1992 (acquisition by member of same group) |
| |
| |
“198I | Exploration, appraisal and development expenditure |
| |
(1) | The incurring of exploration, appraisal and development |
| 35 |
expenditure in the course of a ring fence trade is to be treated for the |
| |
purposes of sections 198A to 198H as the acquisition of assets— |
| |
(a) | which are the new assets mentioned in section 152, |
| |
(b) | which are taken into use, and used only, for the purposes of |
| |
| 40 |
(c) | which are oil assets, and |
| |
(d) | which fall within the classes of assets listed in section 155. |
| |
|
| |
|
| |
|
(2) | The reference in subsection (1) to sections 198A to 198H includes |
| |
sections 152, 153, 175 and 198(1) so far as they apply for the purpose |
| |
of determining whether a disposal and acquisition qualifies for roll- |
| |
over relief or section 153 relief (within the meaning given in section |
| |
| 5 |
(3) | Section 198C has effect in relation to expenditure within subsection |
| |
(1) of this section as if subsection (5) of that section were omitted. |
| |
(4) | References in this section to exploration, appraisal and development |
| |
expenditure are to expenditure on oil and gas exploration, appraisal |
| |
and development activities which is treated as such under generally |
| 10 |
accepted accounting practice. |
| |
(5) | Nothing in this section affects sections 152, 153, 175 and 198(1) so far |
| |
as they apply otherwise than for the purposes of sections 198A to |
| |
| |
| 15 |
“oil asset” has the meaning given in section 198E(5); |
| |
“ring fence trade” has the meaning given in section 198.” |
| |
6 | The amendment made by this Part of this Schedule has effect in relation to |
| |
disposals made on or after 24 March 2010 (whether the deemed acquisition |
| |
takes place before, on or after that date). |
| 20 |
| |
| |
Benefits under pension schemes |
| |
| |
Changes to benefits available under pension schemes etc |
| |
Unsecured and alternatively secured pension to be replaced by drawdown pension |
| 25 |
1 (1) | In Part 4 of FA 2004 (pension schemes etc), section 165 (pension rules) is |
| |
| |
| |
| |
(i) | for “If the member has not reached the age of 75, no payment |
| 30 |
of pension” substitute “No payment of pension”, and |
| |
(ii) | for paragraph (c) substitute— |
| |
| |
(b) | for pension rule 5 substitute— |
| |
| 35 |
| The total amount of drawdown pension paid in each |
| |
drawdown pension year in respect of a money purchase |
| |
arrangement must not exceed 100% of the basis amount for |
| |
the drawdown pension year. |
| |
| But this limit does not apply in relation to an arrangement to |
| 40 |
which subsection (3A) applies.”; |
| |
|
| |
|
| |
|
(c) | omit pension rules 6 and 7. |
| |
(3) | After subsection (3) insert— |
| |
“(3A) | This subsection applies to an arrangement if— |
| |
(a) | the member meets the flexible drawdown conditions, |
| |
(b) | the member makes a valid declaration to the scheme |
| 5 |
administrator to that effect, and |
| |
(c) | the declaration is accepted by the scheme administrator. |
| |
(3B) | The member meets the flexible drawdown conditions if— |
| |
(a) | the member satisfied the minimum income requirement on |
| |
| 10 |
(b) | no relevant contributions are paid under any money |
| |
purchase arrangement (other than a cash balance |
| |
arrangement) relating to the member under a registered |
| |
pension scheme in the tax year in which the declaration is |
| |
| 15 |
(c) | at the time of the declaration the member is not an active |
| |
member of any registered pension scheme under which there |
| |
is a defined benefits or cash balance arrangement relating to |
| |
| |
Meaning of “drawdown pension” |
| 20 |
2 | Part 1 of Schedule 28 to FA 2004 (pension rules) is amended as follows. |
| |
3 (1) | In paragraph 4 (meaning of “unsecured pension”), for ““Unsecured |
| |
pension”” substitute ““Drawdown pension””. |
| |
(2) | The heading before paragraph 4 becomes “Drawdown pension”. |
| |
4 | In paragraph 6 (short-term annuity), in sub-paragraph (1)— |
| 25 |
(a) | in paragraph (a), for “member’s unsecured pension fund” substitute |
| |
“member’s drawdown pension fund”; |
| |
(b) | in paragraph (d), omit “and ends before the member reaches the age |
| |
| |
5 | For paragraph 7 (meaning of “income withdrawal”) substitute— |
| 30 |
“7 | “Income withdrawal” means an amount (other than an annuity) |
| |
which the member is entitled to be paid from the member’s |
| |
drawdown pension fund in respect of an arrangement.” |
| |
Member’s drawdown pension fund |
| |
6 (1) | In Part 1 of Schedule 28 to FA 2004, paragraph 8 (member’s unsecured |
| 35 |
pension fund) is amended as follows. |
| |
(2) | In sub-paragraph (1), for “member’s unsecured pension fund” substitute |
| |
“member’s drawdown pension fund”. |
| |
(3) | In sub-paragraph (1A)(a), for “unsecured pension” substitute “drawdown |
| |
| 40 |
(4) | Omit sub-paragraphs (2) and (3). |
| |
|
| |
|
| |
|
(5) | In sub-paragraph (4), for “unsecured pension fund” (in each place) |
| |
substitute “drawdown pension fund”. |
| |
(6) | The heading before paragraph 8 becomes “Member’s drawdown pension fund”. |
| |
Drawdown pension year and basis amount for drawdown pension year |
| |
7 (1) | In Part 1 of Schedule 28 to FA 2004, paragraph 9 (unsecured pension year) is |
| 5 |
| |
(2) | In sub-paragraph (1)— |
| |
(a) | for ““Unsecured pension year”” substitute ““Drawdown pension |
| |
| |
(b) | in paragraph (a), for “unsecured pension” substitute “drawdown |
| 10 |
| |
| |
| “This is subject to paragraph 10B.” |
| |
(3) | For sub-paragraph (2) substitute— |
| |
“(2) | The drawdown pension year in which the member dies is the last |
| 15 |
drawdown pension year and ends immediately before the |
| |
| |
(4) | The heading before paragraph 9 becomes “Drawdown pension year and basis |
| |
amount for drawdown pension year”. |
| |
8 (1) | Paragraph 10 of that Schedule (basis amount) is amended as follows. |
| 20 |
(2) | For sub-paragraph (1) substitute— |
| |
“(A1) | This paragraph applies in relation to drawdown pension years |
| |
beginning on or before the member’s 75th birthday. |
| |
(1) | Subject as follows, the period of three drawdown pension years |
| |
beginning with the first drawdown pension year, and each |
| 25 |
succeeding period of three drawdown pension years, is a |
| |
| |
(1ZA) | But the reference period in which the member reaches the age of |
| |
75 ends with the drawdown pension year in which the member |
| |
| 30 |
(3) | In sub-paragraph (1B)(b)— |
| |
(a) | after “subject to” insert “sub-paragraph (1ZA) and”; |
| |
(b) | for “five unsecured pension years” (in both places) substitute “three |
| |
| |
(4) | In sub-paragraphs (2) and (4)— |
| 35 |
(a) | for “unsecured pension year” substitute “drawdown pension year”; |
| |
(b) | for “member’s unsecured pension fund” substitute “member’s |
| |
| |
(5) | In sub-paragraph (5)— |
| |
(a) | for “an unsecured pension year” substitute “a drawdown pension |
| 40 |
| |
(b) | for “that unsecured pension year” substitute “that drawdown |
| |
| |
|
| |
|
| |
|
(6) | In sub-paragraph (6)— |
| |
(a) | for “unsecured pension year” substitute “drawdown pension year”; |
| |
(b) | for “member’s unsecured pension fund” substitute “member’s |
| |
| |
(7) | After sub-paragraph (6) insert— |
| 5 |
“(6A) | But sub-paragraph (5) does not apply where the operation of that |
| |
sub-paragraph in relation to an additional fund designation |
| |
during a drawdown pension year would reduce the basis amount |
| |
for that drawdown pension year.” |
| |
(8) | In sub-paragraph (7), for “member’s unsecured pension fund” substitute |
| 10 |
“member’s drawdown pension fund”. |
| |
(9) | In sub-paragraph (8), for “unsecured pension” substitute “drawdown |
| |
| |
(10) | In sub-paragraph (8A), for “member’s unsecured pension fund” substitute |
| |
“member’s drawdown pension fund”. |
| 15 |
(11) | In sub-paragraph (9)(b), for “unsecured pension year” substitute |
| |
| |
(12) | After sub-paragraph (10) insert— |
| |
“(11) | Nothing in this paragraph applies in respect of an arrangement to |
| |
which section 165(3A) applies.” |
| 20 |
9 | After paragraph 10 of that Schedule insert— |
| |
“10A (1) | This paragraph applies in relation to drawdown pension years |
| |
beginning after the member’s 75th birthday. |
| |
(2) | For the first drawdown pension year beginning after the member |
| |
reached the age of 75, and each succeeding drawdown pension |
| 25 |
year, the basis amount is the annual amount of the relevant |
| |
annuity which could have been purchased by the application of |
| |
the sums and assets representing the member’s drawdown |
| |
pension fund on the nominated date. |
| |
| But this is subject to sub-paragraph (6). |
| 30 |
(3) | In a case where the member first becomes entitled to drawdown |
| |
pension in respect of the arrangement after reaching the age of 75, |
| |
“the nominated date”, in relation to the first drawdown pension |
| |
year in respect of the arrangement, is the first day of that year. |
| |
(4) | In any other case, “the nominated date”, in relation to the first |
| 35 |
drawdown pension year beginning after the member reached the |
| |
| |
(a) | if the member and the scheme administrator so agree, the |
| |
day immediately before the member’s 75th birthday, or |
| |
(b) | if they do not so agree, such day within the period of 60 |
| 40 |
days ending with the first day of the drawdown pension |
| |
year as is nominated by the scheme administrator (or, if no |
| |
day is nominated by the scheme administrator, the first |
| |
| |
|
| |
|
| |
|
(5) | “The nominated date”, in relation to each other drawdown |
| |
pension year, is such day within the period of 60 days ending with |
| |
the first day of the drawdown pension year as is nominated by the |
| |
scheme administrator (or, if no day is nominated by the scheme |
| |
administrator, is the first day of that year). |
| 5 |
(6) | On the occasion of each additional fund designation during a |
| |
drawdown pension year, the basis amount of that drawdown |
| |
pension year is to be recalculated in accordance with sub- |
| |
| |
(7) | The basis amount for the drawdown pension year is the annual |
| 10 |
amount of the relevant annuity which could have been purchased |
| |
by the application of the sums and assets representing the |
| |
member’s drawdown pension fund immediately after the |
| |
additional fund designation. |
| |
(8) | But sub-paragraph (6) does not apply where the operation of that |
| 15 |
sub-paragraph in relation to an additional fund designation |
| |
during a drawdown pension year would reduce the basis amount |
| |
for that drawdown pension year. |
| |
(9) | “Additional fund designation” has the meaning given by |
| |
| 20 |
(10) | Paragraph 14 defines “relevant annuity”. |
| |
(11) | Nothing in this paragraph applies in respect of an arrangement to |
| |
which section 165(3A) applies. |
| |
10B (1) | This paragraph applies if the member has reached the age of 75. |
| |
(2) | Sub-paragraph (3) applies if, at any time during a drawdown |
| 25 |
pension year in respect of an arrangement (“the current |
| |
drawdown pension year”), the member notifies the scheme |
| |
administrator that the member wishes the drawdown pension |
| |
year following the current drawdown pension year to begin on the |
| |
day on which the next drawdown pension year in respect of |
| 30 |
another arrangement relating to the member under the pension |
| |
scheme (including any arrangement relating to that person as a |
| |
| |
(3) | The scheme administrator may determine— |
| |
(a) | that the current drawdown pension year is to end |
| 35 |
immediately before that day, and |
| |
(b) | that the period of 12 months beginning with that day, and |
| |
each succeeding period of 12 months, is a drawdown |
| |
pension year in respect of the arrangement. |
| |
(4) | The scheme administrator may not make a determination under |
| 40 |
this paragraph more than once in relation to the same |
| |
| |
|
| |
|
| |
|
Flexible drawdown: minimum income requirement etc |
| |
10 | In Part 1 of Schedule 28 to FA 2004, after paragraph 14 insert— |
| |
“Minimum income requirement |
| |
14A (1) | The member satisfies the minimum income requirement at any |
| |
time in a tax year if the amount of relevant income payable to the |
| 5 |
member for that tax year is not less than the minimum income |
| |
| |
(2) | The minimum income threshold is £20,000. |
| |
(3) | “Relevant income” means any of the following kinds of income— |
| |
(a) | payments of a scheme pension or dependants’ scheme |
| 10 |
pension provided by a registered pension scheme; |
| |
(b) | payments of a lifetime annuity or dependants’ annuity |
| |
made by a registered pension scheme; |
| |
(c) | payments under an overseas pension scheme which, if the |
| |
scheme were a registered pension scheme, would fall |
| 15 |
within paragraph (a) or (b); |
| |
(d) | payments of a social security pension; |
| |
(e) | payments under the financial assistance scheme which are |
| |
payable until the member’s death; |
| |
(f) | payments made under that scheme in anticipation of, and |
| 20 |
on account of, payments falling within paragraph (e). |
| |
(4) | But “relevant income” does not include— |
| |
(a) | drawdown pension or dependants’ drawdown pension, or |
| |
(b) | any payments under an overseas pension scheme which, if |
| |
the scheme were a registered pension scheme, would be |
| 25 |
drawdown pension or dependants’ drawdown pension. |
| |
(5) | A payment of any pension or annuity within sub-paragraph (3), or |
| |
a payment under the financial assistance scheme, is not to be |
| |
regarded as relevant income unless the member has, at any time |
| |
before the time mentioned in sub-paragraph (1), already received |
| 30 |
a payment of that pension or annuity or (as the case may be) a |
| |
payment under that scheme. |
| |
(6) | For the purposes of sub-paragraph (1), the amount of any relevant |
| |
income payable in a currency other than sterling is to be taken to |
| |
be the equivalent amount in sterling, calculated by reference to an |
| 35 |
appropriate spot rate of exchange prevailing on the relevant day. |
| |
| |
“financial assistance scheme” means the scheme provided for |
| |
by regulations under section 286 of the Pensions Act 2004; |
| |
“social security pension” means— |
| 40 |
(a) | any pension, benefit or allowance to which section |
| |
577 of ITEPA 2003 applies, and |
| |
(b) | any pension, benefit or allowance which— |
| |
(i) | is payable under the law of a country or |
| |
territory outside the United Kingdom, and |
| 45 |
|
| |
|