SCHEDULES

SCHEDULE 5 E+W+S Pension credits: mode of discharge

Disqualification as destination for pension credit E+W+S

7 (1) If a pension credit derives from a pension arrangement which is [F1 a registered pension scheme under section 153 of the Finance Act 2004,] an arrangement is disqualified as a destination for the credit unless— E+W+S

(a) it is also [F2 registered] for those purposes, or

(b) it satisfies such requirements as the Secretary of State may prescribe by regulations.

(2) If the rights by reference to which the amount of a pension credit is determined are or include contracted-out rights or safeguarded rights, an arrangement is disqualified as a destination for the credit unless—

(a) it is of a description prescribed by the Secretary of State by regulations, and

(b) it satisfies such requirements as he may so prescribe.

(3) An occupational pension scheme is disqualified as a destination for a pension credit unless the rights to be acquired under the arrangement by the person entitled to the credit are rights whose value, when calculated in accordance with regulations made by the Secretary of State, equals the credit.

(4) An annuity contract or insurance policy is disqualified as a destination for a pension credit in such circumstances as the Secretary of State may prescribe by regulations.

(5) The requirements which may be prescribed under sub-paragraph (1)(b) include, in particular, requirements of the Inland Revenue.

(6) In sub-paragraph (2)—

• “contracted-out rights” means such rights under, or derived from—

  (a)

  an occupational pension scheme contracted-out by virtue of section 9(2) or (3) of the M1 Pension Schemes Act 1993, or

  (ab)

  [F3 an occupational pension scheme constituting a money purchase contracted-out scheme for the purposes of that Act, or]

  (b)

  a personal pension scheme [F4 which is [F4 constituting]] an appropriate scheme for the purposes of that Act,

  as the Secretary of State may prescribe by regulations;

• “safeguarded rights” has the meaning given by section 68A of the Pension Schemes Act 1993.

Textual Amendments

F1 Words in Sch. 5 para. 7(1) substituted (6.4.2006) by The Taxation of Pension Schemes (Consequential Amendments) Order 2006 (S.I. 2006/745), arts. 1, 15(5)(a)

F2 Word in Sch. 5 para. 7(1)(a) substituted (6.4.2006) by The Taxation of Pension Schemes (Consequential Amendments) Order 2006 (S.I. 2006/745), arts. 1, 15(5)(b)

F3 Sch. 5 para. 7(6)(ab) inserted (26.9.2007 for specified purposes) by Pensions Act 2007 (c. 22), ss. 15(4), 30(2)(b), (3), Sch. 4 para. 40(b) (with Sch. 4 Pt. 3)

F4 Word in Sch. 5 para. 7(6)(b) substituted (26.9.2007 for specified purposes) by Pensions Act 2007 (c. 22), ss. 15(4), 30(2)(b), (3), Sch. 4 para. 40(c) (with Sch. 4 Pt. 3)

Commencement Information

I1 Sch. 5 para. 7 wholly in force at 1.12.2000; Sch. 5 para. 7 in force for certain purposes at Royal Assent see s. 89(1)(5); Sch. 5 para. 7 in force at 1.12.2000 insofar as not already in force by S.I. 2000/1047, art. 2(2)(d), Sch. Pt. IV

Marginal Citations

M1 1993 c. 48.