Finance Act 2004

[F1 272A Liabilities of independent trustee U.K.

(1) This section applies in relation to a person (“P”) who is an independent trustee of a registered pension scheme.

(2) For the purposes of this section and section 272B an “independent trustee” is a trustee of a pension scheme—

(a) who is appointed by, or otherwise pursuant to, an order made—

(i) by the Pensions Regulator under section 7 of the Pensions Act 1995 or Article 7 of the Pensions (Northern Ireland) Order 1995 (appointment of trustees by the Pensions Regulator), or

(ii) by a court on an application made by the Pensions Regulator, and

(b) who is not a trustee of the pension scheme at any time before—

(i) the day on which the trustee's appointment as mentioned in paragraph (a) takes effect, or

(ii) if the trustee is appointed as mentioned in paragraph (a) on more than one occasion, the day on which the first appointment takes effect.

(3) In this section “the relevant day” means—

(a) the day on which P's appointment as trustee of the pension scheme as mentioned in subsection (2)(a) takes effect, or

(b) if P is appointed as trustee of the pension scheme as mentioned in subsection (2)(a) on more than one occasion, the day on which P's first appointment takes effect.

(4) If P is, or is one of the persons who are, the scheme administrator, P does not assume any liability falling within subsection (7) which P would otherwise assume (including by reason of section 272C(3) or (4)).

(5) Subsection (4) does not apply if P is, or is one of the persons who are, the scheme administrator at any time before the relevant day.

(6) In relation to any liability falling within subsection (7), in section 272(4) references to trustees or to persons who control the management of the pension scheme do not include P.

(7) The liabilities falling within this subsection are—

(a) liabilities for the following in respect of payments made (or treated as having been made) by the pension scheme on or before the relevant day—

(i) the short service refund lump sum charge;

F2 (ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(iii) the special lump sum death benefits charge;

(iv) the authorised surplus payments charge;

(v) the scheme sanction charge in respect of scheme chargeable payments falling within section 241(1)(a) or (b);

F3 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c) liabilities for the scheme sanction charge in respect of scheme chargeable payments treated under section 185A or 185F as having been made by the pension scheme in tax years earlier than the one in which the relevant day falls;

(d) any liability for the scheme sanction charge in respect of the relevant fraction of any scheme chargeable payment treated under section 185A as having been made by the pension scheme in the tax year in which the relevant day falls;

(e) where the pension scheme is treated under section 185F as having made a scheme chargeable payment in the tax year in which the relevant day falls and there is a relevant net gain, any liability for the scheme sanction charge in respect of the relevant amount;

(f) any liability to pay interest in respect of a liability mentioned in paragraphs (a) to (e) arising at any time.

(8) For the purposes of subsection (7)(d) “the relevant fraction” is—

where—

A is the number of days in the tax year up to (and including) the relevant day, and

B is the number of days in the tax year.

(9) For the purposes of subsection (7)(e)—

(a) there is a “relevant net gain” if—

(i) the total amount of any gains treated under section 185F as accruing in the tax year on or before the relevant day, exceeds

(ii) the total amount of any losses treated under section 185F as so accruing, and

(b) “the relevant amount” is—

(i) the scheme chargeable payment, or

(ii) if that payment is greater than the excess of gains over losses mentioned in paragraph (a), the amount of that excess.

(10) Subsection (11) applies if—

(a) apart from that subsection, losses in relation to which section 185G(10) applies would be included in the total amount mentioned in subsection (9)(a)(ii), and

(b) the losses exceed the gains—

(i) which are included in the total amount mentioned in subsection (9)(a)(i), and

(ii) from which the losses can be deducted in accordance with section 185G(10).

(11) The losses are not to be included in the total amount mentioned in subsection (9)(a)(ii) so far as they exceed the gains.]

Textual Amendments

F1 Ss. 272A-272C inserted (with effect in accordance with Sch. 7 para. 22 of the amending Act) by Finance Act 2014 (c. 26), Sch. 7 para. 19

F2 S. 272A(7)(a)(ii) omitted (with effect in accordance with Sch. 5 para. 4 of the amending Act) by virtue of Finance Act 2016 (c. 24), Sch. 5 para. 3(1)(b)

F3 S. 272A(7)(b) omitted (for the tax year 2024-25 and subsequent tax years) by virtue of Finance Act 2024 (c. 3), Sch. 9 paras. 10, 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)