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Finance Act 2004

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Chapter 8U.K.Supplementary

InterpretationU.K.

275Insurance companyU.K.

(1)In this Part “insurance company” means—

(a)a person who has permission under Part 4 of FISMA 2000 to effect or carry out contracts of long-term insurance, or

(b)an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to FISMA 2000 (certain direct insurance undertakings) which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts of long-term insurance.

(2)Contracts of long-term insurance” means contracts which fall within Part 2 of Schedule 1 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544).

276Relevant valuation factorU.K.

(1)For the purposes of this Part the relevant valuation factor in relation to any registered pension scheme, or any arrangement under a registered pension scheme, is 20.

(2)But the Inland Revenue and the scheme administrator of any registered pension scheme may agree that the relevant valuation factor in relation to the pension scheme, or any arrangement under the pension scheme, is to be a number greater than 20.

277Valuation assumptionsU.K.

For the purposes of this Part the valuation assumptions in relation to a person, benefits and a date are—

(a)if the person has not reached such age (if any) as must have been reached to avoid any reduction in the benefits on account of age, that the person reached that age on the date, and

(b)that the person’s right to receive the benefits had not been occasioned by physical or mental impairment.

278Market valueU.K.

(1)For the purposes of this Part the market value of an asset held for the purposes of a pension scheme is to be determined in accordance with section 272 of TCGA 1992.

(2)Where an asset held for the purposes of a pension scheme is a right or interest in respect of any money lent (directly or indirectly) to any relevant associated person, the value of the asset is to be treated as being the amount owing (including any unpaid interest) on the money lent.

(3)The following are “relevant associated persons”—

(a)any employer who has at any time (whether or not before the making of the loan) made contributions under the pension scheme,

(b)any company connected (at the time of the making of the loan or subsequently) with any such employer,

(c)any person who has at any time (whether or not before the making of the loan) been a member of the pension scheme, and

(d)any person connected (at the time of the making of the loan or subsequently) with any such person.

(4)Section 839 of ICTA (connected persons) applies for the purposes of this section.

279Other definitionsU.K.

(1)In this Part—

  • the Board of Inland Revenue” means the Commissioners of Inland Revenue,

  • charity” has the same meaning as in section 506 of ICTA,

  • employee” and “employer” have the same meaning as in the employment income Parts of ITEPA 2003 (see sections 4 and 5 of that Act) but include (respectively) a former employee and a former employer (and “employment” is to be read accordingly),

  • the Inland Revenue” means any officer of the Board of Inland Revenue,

  • normal minimum pension age” means—

    (a)

    before 6th April 2010, 50, and

    (b)

    on and after that date, 55,

  • pension credit” and “pension debit” have the same meaning as in Chapter 1 of Part 4 of WRPA (see section 46(1) of that Act) or Chapter 1 of Part 5 of WRP(NI)O 1999 (see Article 43(1) of that Order),

  • pension sharing order or provision” means any order or provision mentioned in section 28(1) of WRPA 1999 or Article 25(1) of WRP(NI)O 1999,

  • personal representatives”, in relation to a person who has died, means—

    (a)

    in the United Kingdom, persons responsible for administering the estate of the deceased, and

    (b)

    in a country or territory outside the United Kingdom, the persons having functions under its law equivalent to those of administering the estate of the deceased,

  • retail prices index” means the general index (for all items) published by the Office for National Statistics or, if that index is not published for a relevant month, any substituted index or index figures published by that Office,

  • tax year” means, in relation to income tax, a year for which any Act provides for income tax to be charged, and

  • the tax year 2006-07” means the tax year beginning on 6th April 2006 (and any corresponding expression in which two years are simultaneously mentioned is to be read in the same way).

(2)In this Part references to payments made, or benefits provided, by a pension scheme are to payments made or benefits provided from sums or assets held for the purposes of the pension scheme.

(3)For the purposes of this Part the sums and assets held for the purposes of an arrangement under a pension scheme are so much of the sums and assets held for the purposes of the pension scheme under which the arrangement is made as are properly attributable, in accordance with the provisions of the pension scheme and any just and reasonable apportionment, to the arrangement.

280Abbreviations and general indexU.K.

(1)In this Part—

  • NIA 1965” means the National Insurance Act 1965 (c. 51),

  • NIA(NI) 1966” means the National Insurance Act (Northern Ireland) 1966 (c. 6 (N.I.)),

  • TMA 1970” means the Taxes Management Act 1970 (c. 9),

  • ICTA 1970” means the Income and Corporation Taxes Act 1970 (c. 10),

  • ICTA” means the Income and Corporation Taxes Act 1988 (c. 1),

  • SSCBA 1992” means the Social Security Contributions and Benefits Act 1992 (c. 4),

  • SSCB(NI)A 1992” means the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7),

  • TCGA 1992” means the Taxation of Chargeable Gains Act 1992 (c. 12),

  • WRPA 1999” means the Welfare Reform and Pensions Act 1999 (c. 30),

  • WRP(NI)O 1999” means the Welfare Reform and Pensions (Northern Ireland) Order 1999 (S.I. 1999/ 3147 (N.I. 11)),

  • FISMA 2000” means the Financial Services and Markets Act 2000 (c. 8), and

  • ITEPA 2003” means the Income Tax (Earnings and Pensions) Act 2003 (c. 1).

(2)In this Part the following expressions are defined or otherwise explained by the provisions indicated—

accounting periodsection 834(1) of ICTA
active member (of a pension scheme)section 151(2)
active membership period (insections 221 to 223)section 221(4) and (5)
amount crystallisedsection 216
annual allowancesection 228
annual allowance chargesection 227(1)
annuity protection lump sum death benefitparagraph 16 of Schedule 29
arrangementsection 152(1)
authorised surplus paymentsection 177
available (in relation to a person’s lifetime allowance)section 219
basic ratesection 832(1) of ICTA
basic rate limitsection 832(1) of ICTA
benefits (provided by pension scheme)section 279(2)
benefit crystallisation eventsection 216
the Board of Inland Revenuesection 279(1)
borrowing (in Chapter 3)section 163
cash balance arrangementsection 152(3)
cash balance benefitssection 152(5)
chargeable gainsection 832(1) of ICTA
charitysection 279(1)
companysection 832(1) of ICTA
compensation paymentsection 178
contributionsections188(4) to (6) and 195
defined benefitssection 152(7)
defined benefits arrangementsection 152(6)
defined benefits lump sum death benefitparagraph 13 of Schedule 29
dependant’s alternatively secured pension fundparagraph 25 of Schedule 28
dependants' scheme pensionparagraph 16 of Schedule 28
dependant’s unsecured pension fundparagraph 22 of Schedule 28
employee and employer (and employment)section 279(1)
employment incomesection 7(2) of ITEPA 2003
enhanced lifetime allowance regulationssection 256(2)
entitled (in relation to a lump sum)section 166(2)
entitled (in relation to a pension)section 165(3)
higher ratesection 832(1) of ICTA
hybrid arrangementsection 152(8)
ill-health conditionparagraph 1 of Schedule 28
the individual (in sections 215 to 219)section 214(5)
the Inland Revenuesection 279(1)
insurance companysection 275
investments (in relation to a pension scheme)section186(3) and (4)
liability (in Chapter 3)section 163
lifetime allowance (in relation to a person)section 218
lifetime allowance chargesection 214(1)
lifetime allowance enhancement factorssection 218(5)
lifetime allowance excess lump sumparagraph 11 of Schedule 29
lifetime annuityparagraph 3 of Schedule 28
loan (in Chapter 3)section 162
lump sum death benefitsection 168(2)
market valuesection 278
member (of a pension scheme)section 151(1)
member’s alternatively secured pension fundparagraph 11 of Schedule 28
member’s unsecured pension fundparagraph 8 of Schedule 28
money purchase arrangementsection 152(2)
money purchase benefitssection 152(4)
net pay pension schemesection 191(9)
normal minimum pension agesection 279(1)
occupational pension schemesection 150(5)
overseas arrangement active membership period (in sections 224 to 226)section 224(7) and (8)
overseas pension schemesection 150(7)
payment (in Chapter 3)section 161
payments (made by pension scheme)section 279(2)
pensionsection 165(2)
pension commencement lump sumparagraph 1of Schedule 29
pension credit and pension debitsection 279(1)
pension input amountsection 229
pension input periodsection 238
pension protection lump sum death benefitparagraph 14 of Schedule 29
pension schemesection 150(1)
the pension scheme (in sections 215 to 219)section 214(5)
pension sharing order or provisionsection 279(1)
pensioner member (of a pension scheme)section 151(3)
period of accountsection 832(1) of ICTA
personal representativessection 279(1)
property investment LLPsection 842B of ICTA
public service pension schemesection 150(3)
qualifying recognised overseas pension schemesection 169(2)
recognised overseas pension schemesection 150(8)
recognised overseas scheme arrangement (insections 224 to 226)section 224(2) and (3)
registered pension schemesection 150(2)
relevant overseas individualsection 221(3)
relevant UK earningssection 189(2)
relevant UK individualsection 189
relevant valuation factorsection 276
relievable pension contributionssection 188(2) and (3)
retail prices indexsection 279(1)
scheme administratorsection 270 (but see also sections 271 to 274)
scheme chargeable paymentsection 241
scheme managersection 169(3)
scheme pensionparagraph 2 of Schedule 28
scheme sanction chargesection 239(1)
serious ill-health lump sumparagraph 4 of Schedule 29
short service refund lump sumparagraph 5 of Schedule 29
short service refund lump sum chargesection 205(1)
special lump sum death benefits chargesection 206(1)
sponsoring employersection 150(6)
standard lifetime allowancesection 218(2) and (3)
sums and assets held for the purposes of an arrangementsection 279(3)
tax yearsection 279(1)
the tax year 2006-07 etc.section 279(1)
total incomesection 835 of ICTA
total pension input amountsection 229
transfer lump sum death benefitparagraph 19 of Schedule 29
trivial commutation lump sumparagraph 7 of Schedule 29
unauthorised employer paymentsection 160(4)
unauthorised member paymentsection 160(2)
unauthorised paymentsection 160(5)
unauthorised payments chargesection 208(1)
unauthorised payments surchargesection 209(1)
uncrystallised funds lump sum death benefitparagraph 15 of Schedule 29
unsecured pension fund lump sum death benefitparagraph17of Schedule 29
valuation assumptions (in relation to a person)section 277
winding-up lump sumparagraph 10 of Schedule 29
winding-up lump sum death benefitparagraph 21 of Schedule 29

Other supplementary provisionsU.K.

Valid from 06/04/2006

281Minor and consequential amendmentsU.K.

(1)Schedule 35 contains minor and consequential amendments of enactments in consequence of, or otherwise in connection with, this Part.

(2)The Treasury may by order make such other amendments (including repeals and revocations) as may appear appropriate in consequence of, or otherwise in connection with, this Part—

(a)in any enactment contained in an Act passed before 6th April 2006 or in the Session in which that date falls, and

(b)in any instrument made before that date or in the Session in which that date falls.

(3)An order under subsection (2) may include any transitional provisions or savings appearing to the Treasury to be appropriate.

282Orders and regulationsU.K.

(1)Any power of the Treasury or the Board of Inland Revenue to make any order or regulations under this Part is exercisable by statutory instrument.

(2)Any statutory instrument containing any order or regulations made by the Treasury or the Board of Inland Revenue under this Part is subject to annulment in pursuance of a resolution of the House of Commons.

283Transitionals and savingsU.K.

(1)Schedule 36 contains miscellaneous transitional provisions and savings.

(2)The Treasury may by order make any other transitional provision which may appear appropriate in consequence of, or otherwise in connection with, this Part or the repeals made by this Act in consequence of this Part.

(3)An order under subsection (2) may, in particular, include savings from the effect of any amendment made by this Part or any repeal made by this Act in consequence of this Part.

(4)Nothing in Schedule 36 limits the power conferred by subsection (2).

(5)Nothing in that Schedule or in any provision made by virtue of subsection (2) prejudices the operation of sections 16 and 17 of the Interpretation Act 1978 (c. 30) (effect of repeals).

284CommencementU.K.

(1)Chapters 3 to 7 and section 281 (with Schedule 35) do not come into force until 6th April 2006.

(2)But any power to make an order or regulations under any of those provisions may be exercised at any time after this Act is passed.

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