The Registered Pension Schemes and Overseas Pension Schemes (Miscellaneous Amendments) Regulations 2012

Amendments to the Pension Schemes (Categories of Country and Requirements for Overseas Pension Schemes and Recognised Overseas Pension Schemes) Regulations 2006

4.  In regulation 3 (recognised overseas pension schemes: prescribed countries or territories and prescribed conditions)—

(a) in paragraph (1) for “the pension scheme must” to the end substitute—

“the pension scheme must satisfy—

(a) the requirement in paragraph (6); and

(b) one or more of the following requirements—

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

(ii) the requirement in paragraph (4),

(iii) the requirement in paragraph (5).”;

(b) in paragraph (2)—

(i) for “paragraph (1)(a)” substitute “paragraph (1)(b)(i)”;

(ii) in sub-paragraph (c) after “any country or territory” insert “, other than New Zealand,”;

(c) in paragraph (4) omit “The requirement is that,”; and

(d) after paragraph (4) insert—

“(5) At the time of a transfer of sums or assets which would, subject to these Regulations, constitute a recognised transfer the scheme must be of a kind specified in Schedule 2 to these Regulations.

(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.

(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.”.