The Pensions (Abolition of Lifetime Allowance Charge etc) Regulations 2024

The Registered Pension Schemes (Provision of Information) Regulations 2006

9.—(1) The Registered Pension Schemes (Provision of Information) Regulations 2006(1) are amended as follows.

(2) Regulation 3 (provision of information by scheme administrator to HMRC) is amended in accordance with paragraphs (3) and (4).

(3) In the Table, for event 24(2) substitute—

“24 Reportable payments of lump sums or lump sum death benefits”

“The scheme makes— (a) a reportable payment of a lump sum to a member (see paragraphs (10) to (14) of this regulation), or (b) a reportable payment of a lump sum death benefit in respect of a member (see paragraphs (15) and (16) of this regulation).

The information is— (a) the member’s name and national insurance number, (b) the nature and amount of the lump sum or lump sum death benefit, (c) the date of the payment, (d) in a case in which the payment is the payment of a lump sum, confirmation that any amount of tax due on the excess as a result of the charge to tax on pension income under Part 9 of ITEPA 2003 has been paid, and (e) each relevant reference number (if any)..

(4) After paragraph (9) insert—

“(10) For the purposes of event 24, a lump sum paid to a member is “reportable” if any of the following four conditions is met.

(11) The first condition is that—

(a) the member becoming entitled to the lump sum constitutes a relevant benefit crystallisation event within the meaning of section 637Q of ITEPA 2003, and

(b) the amount of the payment exceeds the amount of the member’s lump sum allowance that is available on the member becoming so entitled.

(12) The second condition is that—

(a) the member becoming entitled to the lump sum constitutes a relevant benefit crystallisation event within the meaning of section 637S of ITEPA 2003, and

(b) the amount of the payment exceeds the amount of the member’s lump sum and death benefit allowance that is available on the member becoming so entitled.

(13) The third condition is that—

(a) the member becoming entitled to the lump sum constitutes a relevant benefit crystallisation event within the meaning of section 637Q of ITEPA 2003,

(b) the member’s lump sum allowance is, by virtue of any enactment, higher than the standard lump sum allowance, and

(c) the amount of the payment exceeds the amount of the member’s lump sum allowance that would have been available on the member becoming so entitled had that allowance been the standard lump sum allowance.

(14) The fourth condition is that—

(a) the member becoming entitled to the lump sum constitutes a relevant benefit crystallisation event within the meaning of section 637S of ITEPA 2003,

(b) the member’s lump sum and death benefit allowance is, by virtue of any enactment, higher than the standard lump sum and death benefit allowance, and

(c) the amount of the payment exceeds the amount of the member’s lump sum and death benefit allowance that would have been available on the member becoming so entitled had that allowance been the standard lump sum and death benefit allowance.

(15) For the purposes of event 24, a lump sum death benefit paid in respect of a member is “reportable” if the following condition is met.

(16) The condition is that—

(a) the payment constitutes a relevant benefit crystallisation event within the meaning of section 637S of ITEPA 2003, and

(b) the amount of the payment, either alone or when aggregated with other payments of lump sum death benefits from the same scheme that constitute relevant benefit crystallisation events within the meaning of section 637S of ITEPA 2003, exceeds the amount of the standard lump sum and death benefit allowance.

(17) In this regulation—

“the standard lump sum allowance” means the amount specified in section 637P of ITEPA, disregarding the effect of any enactment under which the amount specified in that section is treated as a different amount in relation to any individual;

“the standard lump sum and death benefit allowance” means the amount specified in section 637R of ITEPA, disregarding the effect of any enactment under which the amount specified in that section is treated as a different amount in relation to any individual.” (3).

(5) In regulation 8 (death: provision of information by scheme administrator to personal representatives)—

(a) in paragraph (2), for “defined benefits lump sum death benefit or an uncrystallised funds lump sum death benefit” substitute “relevant lump sum death benefit”;

(b) in paragraph (3)—

(i) in the words after sub-paragraph (b), for “defined benefits lump sum death benefit or an uncrystallised funds lump sum death benefit” substitute “relevant lump sum death benefit”;

(ii) at the end insert “The information is to be provided no later than the last day of the period of 2 months beginning with the day on which a request for it is received from the member’s personal representatives.”.

(6) In regulation 14 (information provided to members by scheme administrators about benefit crystallisation events), in paragraph (2) omit sub-paragraph (ba).

(7) In regulation 14ZA (information provided to member by scheme administrator where it appears member may be first flexibly accessing pension rights), in paragraph (3)(b), for “£4,000” (in both places) substitute “£10,000”.

(8) In regulation 16 (pensions and annuities in payment: information provided to and by insurance companies)—

(a) in paragraphs (2) and (3), for “benefit crystallisation events” substitute “relevant benefit crystallisation events”;

(b) in paragraph (4) omit sub-paragraph (b).

(9) In regulation 17 (payments to insurance companies from drawdown pension funds)—

(a) in paragraph (5)(b), in the words before paragraph (i), for “benefit crystallisation events” substitute “relevant benefit crystallisation events”;

(b) omit paragraph (8).

(10) Omit the italic heading after regulation 18 (retention of records).

(1)

S.I. 2006/567.

(2)

The entry for event 24 was inserted by paragraph 106(3) of Schedule 9 to FA 2024.

(3)

Sections 637A to 637S were added to the Income Tax (Earnings and Pensions) Act 2003 by paragraph 41 of Schedule 9 to FA 2024.