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

The Pension Schemes (Information Requirements - Qualifying Overseas Pension Schemes, Qualifying Recognised Overseas Pension Schemes and Corresponding Relief) Regulations 2006

8.—(1) The Pension Schemes (Information Requirements - Qualifying Overseas Pension Schemes, Qualifying Recognised Overseas Pension Schemes and Corresponding Relief) Regulations 2006(1) are amended as follows.

(2) In regulation 1 (interpretation)—

(a) at the appropriate places insert—

““available”: a reference to the amount of a member’s overseas transfer allowance that is available at any time is to the amount of that allowance that would be available if a transfer of the kind mentioned in section 244IA(1)(a) were made at that time;”

““block transfer” has the meaning given by section 244AB(2)(a);”

““relevant benefit crystallisation event” has the same meaning as in section 637S of ITEPA 2003 (availability of individual’s lump sum and death benefit allowance);”

““relieved relevant non-UK scheme transfer” has the meaning given by section 244AB(1);”

““used up”, in relation to a transfer of the kind mentioned in section 244IA(1)(a), means the reduction caused by the transfer in the amount of the member’s overseas transfer allowance that would be available on the making of a subsequent transfer of that kind;”;

(b) in the definition of “onward transfer” for “244A” substitute “244AB”.

(3) In regulation 2 (information relating to relevant migrant members and individuals entitled to corresponding relief)—

(a) in the opening words, for “benefit crystallisation” (the first time it occurs) substitute “relevant”;

(b) in paragraphs (1)(a) and (b) and (2), before “benefit crystallisation event” insert “relevant”.

(4) In regulation 3 (information - QROPS and former QROPS)(2)—

(a) in paragraph (2)(da)(i) at the end insert “and, if so, whether under section 244AC or section 244IA”;

(b) in paragraph (2)(da)(iii) omit the “and” at the end;

(c) in paragraph (2)(da), after paragraph (iii) insert—

“(iiia) whether the payment is a transfer of the kind mentioned in section 244IA(1)(a) and, if so, the amount of the member’s overseas transfer allowance used up by the transfer, and”;

(d) in paragraph (2B)(3), for “section 244A(4)” substitute “the definition of “the relevant period” in section 244AB(1)”.

(5) In regulation 3AA (information provided to member of QROPS etc on first flexibly accessing pension rights)(4)—

(a) in paragraph (3)(b), for “£4,000” (in both places) substitute “£10,000”;

(b) in paragraph (3)(c), for the words from “under section 636A(1A) and (1B)” to the end substitute “by virtue of section 637D of ITEPA 2003 (uncrystallised funds pension lump sums), as applied by paragraph 1(1) of Schedule 34 (non-UK schemes: application of certain charges).”;

(c) in paragraph (6), for the words from “is to be read” to the end substitute “has the meaning given by section 278A.”

(6) In regulation 3AD (information provided by QROPS etc about transfers), in paragraph (2)—

(a) in sub-paragraph (d), after “transfer” insert “and, if so, whether under section 244AC or section 244IA”;

(b) omit the “and” at the end of sub-paragraph (f);

(c) after sub-paragraph (f) insert—

“(fa) whether the transfer is a transfer of the kind mentioned in section 244IA(1)(a) and, if so, the amount of the member’s overseas transfer allowance used up by the transfer, and”;

(d) in sub-paragraph (g), for “section 244A(4)” substitute “the definition of “the relevant period” in section 244AB(1)”.

(7) In regulation 3AE (information provided by member of QROPS about onward transfers)(5)—

(a) in paragraph (2)(b), for “section 244A(4)” substitute “the definition of “the relevant period” in section 244AB(1)”;

(b) in paragraph (3), for “section 244A(5)” substitute “section 244AB(1)”;

(c) in paragraph (4)(g) omit the “and” at the end;

(d) in paragraph (4), after sub-paragraph (g) insert—

“(ga) the amount of the member’s overseas transfer allowance that is available at the time the information specified in this paragraph is provided, and”.

(8) In regulation 3AG (information about liability to overseas transfer charge)(6)—

(a) in paragraph (1), after sub-paragraph (b) insert—

“(ba) whether the charge arises under section 244AC or section 244IA,

(bb) whether the transfer is a transfer of the kind mentioned in section 244IA(1)(a) and, if so, the amount of the member’s overseas transfer allowance used up by the transfer,”;

(b) in paragraph (4), for “section 244A(4)” substitute “the definition of “the relevant period” in section 244AB(1)”;

(c) after paragraph (4) insert—

“(5) Paragraph (6) applies if—

(a) a relieved relevant non-UK scheme transfer is made to a QROPS, and

(b) an event occurs before the end of the relevant period for the transfer (see the definition of “the relevant period” in section 244AB(1)) that means that the transfer no longer counts as excluded from the overseas transfer charge or that entitlement to repayment under section 244M arises.

(6) The scheme manager of the QROPS or former QROPS must, within 90 days after the date the scheme manager is notified of the event, provide the member with a notice stating the amount of the overseas transfer charge on the transfer.”.

(1)

S.I. 2006/208.

(2)

Paragraph (2) of regulation 3 was substituted by S.I. 2013/2259. Sub-paragraph (da) was added by paragraph 22 of Schedule 4 to FA 2017 (c. 10).

(3)

Paragraph (2B) of regulation 3 was added by paragraph 22 of Schedule 4 to FA 2017.

(4)

Regulations 3AA to 3AD were added by S.I. 2015/673. The figure in regulation 3AA(3)(b) was substituted by S.I. 2018/5.

(5)

Regulation 3AE was added by paragraph 22 of Schedule 4 to FA 2017 and amended by S.I. 2019/773.

(6)

Regulation 3AG was added by paragraph 22 of Schedule 4 to FA 2017.