The Pension Schemes (Categories of Country and Requirements for Overseas Pension Schemes and Recognised Overseas Pension Schemes) Regulations 2006

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There are currently no known outstanding effects for the The Pension Schemes (Categories of Country and Requirements for Overseas Pension Schemes and Recognised Overseas Pension Schemes) Regulations 2006, Section 3.

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Recognised overseas pension schemes: prescribed countries or territories and prescribed [F1requirements] U.K.

This section has no associated Explanatory Memorandum

3.—[F2(1) For the purposes of section 150(8) (recognised overseas pension schemes), in addition to satisfying the requirements set out in regulation 2 above, the pension scheme must—

(a)except where it falls within paragraph (1A), satisfy [F3the requirements in paragraphs (6) and (6A)]; and

(b)satisfy F4...the following requirements—

(i)the requirement that the scheme must be established in a country or territory mentioned in paragraph (2), [F5and]

(ii)[F6for schemes established in Guernsey,] the requirement in paragraph (4) [F7.]

F8(iii). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(1A) A pension scheme falls within this paragraph if it is an overseas public service pension scheme or if it falls within regulation 2(1)(b).

(1B) A pension scheme is an “overseas public service pension scheme” for the purposes of paragraph (1A) [F9and regulation 2(2A)] if—

(a)it is established in a country or territory outside the United Kingdom and is either—

(i)so established by or under the law of that country or territory, or

(ii)approved by the government of that country or territory; and

(b)it is established for the purpose of providing benefits to individuals for or in respect of services rendered to that country or territory or any political subdivision or local authority thereof.]

(2) The countries and territories referred to in [F10paragraph (1)(b)(i)] are—

[F11(a)member States;]

(b)Iceland, Liechtenstein and Norway; and

[F12(c)any country or territory in respect of which there is in force an Order in Council under section 173 of the Finance Act 2006 or section 2 of the Taxation (International and Other Provisions) Act 2010 giving effect in the United Kingdom to an agreement which contains provision about the exchange of information between the parties.]

F13(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F14(4) At the time of the transfer of sums or assets which would, subject to these Regulations, constitute a recognised transfer, where the pension scheme is an exempt pension contract or an exempt pension trust within the meaning of section 157E of the Income Tax (Guernsey) Law, 1975, the scheme must not be open to non-residents of Guernsey.]

F15(4A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F16(5) F17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) Where tax relief in respect of benefits paid from the scheme is available to a member of the scheme who is not resident in the country or territory in which the scheme is established, the same or substantially the same tax relief must—

(a)also be available to members of the scheme who are resident in the country or territory; and

(b)apply regardless of whether the member was resident in the country or territory—

(i)when the member joined the scheme; or

(ii)for any period of time when they were a member of the scheme.

[F18(6A) The benefits payable to the member under the scheme, to the extent that they consist of the member’s relevant transfer fund or ring-fenced transfer funds—

(a)are payable no earlier than they would be if pension rule 1 in section 165 applied; or

(b)if payable earlier, are only payable in circumstances in which they would be authorised member payments if they were made by a registered pension scheme.]

(7) For the purposes of paragraph (6) “tax relief”—

(a)is any tax relief that is available under the system of taxation of personal income in the country or territory in which the scheme is established; and

(b)includes the grant of an exemption from tax other than an exemption which applies by virtue of double taxation arrangements.

(8) In paragraph (7)(b) “double taxation arrangements” means arrangements made between the country or territory in which the scheme is established and another country or territory with a view to affording relief from double taxation.]

Textual Amendments

F1Word in reg. 3 heading substituted (25.5.2012) by The Pension Schemes (Categories of Country and Requirements for Overseas Pension Schemes and Recognised Overseas Pension Schemes) (Amendment) Regulations 2012 (S.I. 2012/1221), regs. 1, 2(2)(a)

F2Reg. 3(1)-(1B) substituted for reg. 3(1) (with effect in accordance with reg. 2 of the amending S.I.) by The Registered Pension Schemes and Overseas Pension Schemes (Miscellaneous Amendments) Regulations 2013 (S.I. 2013/2259), regs. 1, 8

F3Words in reg. 3(1)(a) substituted (6.4.2015) by The Overseas Pension Schemes (Miscellaneous Amendments) Regulations 2015 (S.I. 2015/673), regs. 1, 3(a)

F4Words in reg. 3(1)(b) omitted (6.4.2017) by virtue of The Pension Schemes (Categories of Country and Requirements for Overseas Pension Schemes and Recognised Overseas Pension Schemes) (Amendments) Regulations 2017 (S.I. 2017/398), regs. 1, 4(a)(i)

F5Word in reg. 3(1)(b)(i) inserted (6.4.2017) by The Pension Schemes (Categories of Country and Requirements for Overseas Pension Schemes and Recognised Overseas Pension Schemes) (Amendments) Regulations 2017 (S.I. 2017/398), regs. 1, 4(a)(ii)

F6Words in reg. 3(1)(b)(ii) inserted (6.4.2017) by The Pension Schemes (Categories of Country and Requirements for Overseas Pension Schemes and Recognised Overseas Pension Schemes) (Amendments) Regulations 2017 (S.I. 2017/398), regs. 1, 4(a)(iii)(aa)

F7Full stop in reg. 3(1)(b)(ii) inserted (6.4.2017) by The Pension Schemes (Categories of Country and Requirements for Overseas Pension Schemes and Recognised Overseas Pension Schemes) (Amendments) Regulations 2017 (S.I. 2017/398), regs. 1, 4(a)(iii)(bb)

F8Reg. 3(1)(b)(iii) omitted (6.4.2017) by virtue of The Pension Schemes (Categories of Country and Requirements for Overseas Pension Schemes and Recognised Overseas Pension Schemes) (Amendments) Regulations 2017 (S.I. 2017/398), regs. 1, 4(a)(iii)(bb)

F9Words in reg. 3(1B) inserted (6.4.2017) by The Pension Schemes (Categories of Country and Requirements for Overseas Pension Schemes and Recognised Overseas Pension Schemes) (Amendments) Regulations 2017 (S.I. 2017/398), regs. 1, 4(b)

F10Words in reg. 3(2) substituted (6.4.2012) by The Registered Pension Schemes and Overseas Pension Schemes (Miscellaneous Amendments) Regulations 2012 (S.I. 2012/884), regs. 1(1), 4(b)(i)

F11Reg. 3(2)(a) substituted (31.12.2020) by The Taxes (Amendments) (EU Exit) Regulations 2019 (S.I. 2019/689), regs. 1, 27(3) (with regs. 39-41); 2020 c. 1, Sch. 5 para. 1(1)