The Health and Social Care (Pension Scheme) Regulations (Northern Ireland) 2008

Provisions about tax N.I.

Deduction of tax N.I.

255.—(1) The Department may deduct from any payment under the Scheme any tax which is required to be paid in respect of it.

(2) Without prejudice to the generality of paragraph (1), if a person becoming entitled to a benefit under this Part—

(a) is a benefit crystallisation event under section 216 of the Finance Act 2004, and

(b) a lifetime allowance charge under section 214 of that Act arises when that event occurs,

the tax charged must be paid by the Scheme administrator.

(3) Paragraph (4) applies if—

(a) a member has given the Scheme administrator a statement in accordance with regulation 215 (tax treatment under the Finance Act 2004 of lump sums payable on pensioners' death) that a lump sum payable under that regulation is to be treated as a pension protection lump sum death benefit in accordance with paragraph 14 of Schedule 29 to that Act, and

(b) has not withdrawn that statement.

(4) Without prejudice to the generality of paragraph (1), when the lump sum is paid, the Scheme administrator may deduct the tax payable under section 206 of the Finance Act 2004(special lump sum death benefits charge) from the lump sum.

[F1 (5) Paragraph (6) applies if—

(a) a lump sum death benefit is payable on the death of a pensioner member in accordance with paragraph (2) of regulation 210 (Amount of lump sum: single capacity members and recent leavers (disregarding regulation 180 employments)); and

(b) that lump sum is payable in respect of a member who had reached the age of 75 at the date of the member’s death.

(6) Without prejudice to the generality of paragraph (1), when the lump sum is paid, the Department may deduct the tax payable under section 206 of the Finance Act 2004 (special lump sum death benefits charge).

(7) Paragraph (8) applies if—

(a) an active, non-contributing or pension credit member opts to exchange a relevant pension for a lump sum in accordance with paragraph (3)(a) of regulation 186 (Option for member in serious ill-health to exchange whole pension for lump sum); and

(b) that lump sum payment is made to a member who has reached the age of 75.

(8) Without prejudice to the generality of paragraph (1), when the lump sum is paid, the Department may deduct the tax payable under section 205A of the Finance Act 2004 (serious ill-health lump sum charge).]

[F2 (9) Without prejudice to the generality of paragraph (1), a person who—

(a) is liable to an annual allowance charge in accordance with section 237A of the 2004 Act, and

(b) meets the conditions specified in paragraph (1) of section 237B of that Act,

may give notice in writing to the Department specifying that the Department and that person are to be jointly and severally liable for the payment of the annual allowance charge due in respect of that person in accordance with section 237B of the 2004 Act.

(10) Unless the Department’s liability for an annual allowance charge referred to in paragraph (9) is discharged in accordance with section 237D of the 2004 Act—

(a) that annual allowance charge will be paid by the Department on behalf of the member, and

(b) that person’s present or future benefits in respect of which that charge arises shall be adjusted in accordance with section 237E of the 2004 Act and shall be calculated by reference to advice provided by the Scheme Actuary for that purpose.]

Textual Amendments

F1 Reg. 255(5)-(8) added (6.4.2012) by The Health and Personal Social Services (Superannuation Scheme, Injury Benefits and Additional Voluntary Contributions), Health and Social Care (Pension Scheme) (Amendment) Regulations (Northern Ireland) 2012 (S.R. 2012/42), regs. 1(5), 29

F2 Reg. 255(9)(10) added (11.8.2012) by The Health and Personal Social Services (Superannuation), Health and Social Care (Pension Scheme) (Amendment) Regulations (Northern Ireland) 2012 (S.R. 2012/78), regs. 1(4)(b), 20