Amendment of the Personal Pension Schemes (Transfer Values) Regulations 1987
3. The Personal Pension Schemes (Transfer Values) Regulations 1987(1) shall be amended as follows —
(a)in regulation 2(a) (i) for the words “Chapter II of Part II of the Finance Act 1970” there shall be substituted the words “Chapter I of Part XIV of the Income and Corporation Taxes Act 1988”;
(b)in regulation 2(a) (ii) for the words “section 26(1) of the Finance Act 1970” there shall be substituted the words “section 612(1) of the Income and Corporation Taxes Act 1988”; and
(c)after regulation 2 there shall be inserted the following regulation —
“Use of cash equivalents for subscribing to self-employed pension arrangements
2A.—(1) For the purposes of paragraph 13(3) of Schedule 1A to the Act (except in prescribed circumstances paragraph 13(2) to be construed as if paragraph (c) were omitted) the prescribed circumstances are that a member of a personal pension scheme who has acquired a right to a cash equivalent under paragraph 12 of Schedule 1A to the Act in respect of rights which are not protected rights has become, or proposes to become, a member of a self-employed pension arrangement.
(2) For the purposes of paragraph 13(2) (c) of Schedule 1A to the Act the prescribed requirements are that the other pension arrangement to which it is proposed to subscribe is a self-employed pension arrangement.
(3) In this regulation “self-employed pension arrangement” means a personal pension scheme within the meaning of Chapter IV of Part XIV of the Income and Corporation Taxes Act 1988 which is approved by the Inland Revenue under that Chapter; but which is neither a personal pension scheme within the meaning of the Social Security Act 1986 nor a contract or a scheme approved under Chapter III of Part XIV of the Income and Corporation Taxes Act 1988.”.
S.I. 1987/1112.