Modifications etc. (not altering text)
C1Pt. 14 Ch. 5 excluded (1.5.1995) by Finance Act 1995 (c. 4), s. 60(5)
M1(1)Where under [F1section 43 of the Pension Schemes Act 1993] the Secretary of State pays minimum contributions for the purposes of approved personal pension arrangements, the amount of the employee’s share of those contributions shall, instead of being the amount provided for in that Part, be the grossed-up equivalent of the amount so provided for.
(2)For the purposes of this section—
“” of minimum contributions is so much of the contributions as is attributable to [F2so much of the aggregate amount mentioned in section 45(1) of the Pension Schemes Act 1993 as is attributable to the reduction which would fall to be made under section 41(1)(a) of that Act];
“the grossed-up equivalent” of an amount is such sum as, after deduction of income tax at the basic rate in force for the year of assessment for which the contributions are paid, is equal to that amount.
(3)The employee’s share of minimum contributions paid for a year of assessment by the Secretary of State for the purposes of approved personal pension arrangements shall be treated for the purposes of income tax—
(a)as the income for that year of the individual in respect of whom it is paid; and
(b)as contributions paid in that year by that individual under those arrangements.
(4)The Board may make regulations—
(a)providing for the recovery by the Secretary of State from the Board, in such circumstances as may be prescribed by the regulations, of any increase attributable to this section in the sums paid by the Secretary of State out of the National Insurance Fund;
(b)requiring the Secretary of State to give the Board such information as may be so prescribed about minimum contributions paid by the Secretary of State;
(c)prescribing circumstances in which this section or any provision of it shall not apply;
(d)making such provision as appears to the Board to be necessary or expedient for the purposes of supplementing the provisions of this section.
(5)Any payment received by the Secretary of State by virtue of this section shall be paid into the National Insurance Fund.
(6)In relation to Northern Ireland, this section shall have effect as if—
(a)references to the Secretary of State were references to the Department of Health and Social Services for Northern Ireland;
(b)references to [F3section 43, section 45(1) and section 41(1)(a) of the Pension Schemes Act 1993] were references to [F4sections 39, 41(1) and 37(1)(a) of the Pension Schemes (Northern Ireland) Act 1993, respectively]; and
(c)references to the National Insurance Fund were references to the Northern Ireland National Insurance Fund.
Textual Amendments
F1Words in s. 649(1) substituted (7.2.1994) by Pension Schemes Act 1993 (c. 48), ss. 190, 193(2), Sch. 8 para. 20(3) (with ss. 6(8), 164); S.I. 1994/86, art. 2
F2Words in s. 649(2) substituted (7.2.1994) by Pension Schemes Act 1993 (c. 48), ss. 190, 193(2), Sch. 8 para. 20(4) (with ss. 6(8), 164); S.I. 1994/86, art. 2
F3Words in s. 649(6)(b) substituted (7.2.1994) by Pension Schemes Act 1993 (c. 48), ss. 190, 193(2), Sch. 8 para. 20(5) (with ss. 6(8), 164); S.I. 1994/86, art. 2
F4Words in s. 649(6)(b) substituted (7.2.1994) by Pension Schemes (Northern Ireland) Act 1993 (c. 49), ss. 184, 186(2), Sch. 7 para. 22(3); S.R. 1994/17, art. 2
Modifications etc. (not altering text)
C2 For regulations see Part III Vol.5 (under
“Personal pension schemes”).
Marginal Citations
M1Source-1987 (No.2) s.42.