InterpretationU.K.
[F1274APower to split schemesU.K.
(1)The Board of Inland Revenue may make regulations for and in connection with treating registered pension schemes to which this section applies as if they were a number of separate registered pension schemes for such of the purposes of this Part and of provision made under it as are prescribed by the regulations.
(2)This section applies to pension schemes prescribed, or of a description prescribed, by the regulations.
(3)The provision that may be made by the regulations may, in particular, include—
(a)provision as to who is to be treated as the scheme administrator in relation to each of the separate pension schemes, and
(b)any such other modifications of the provision made by and under this Part as appears appropriate in consequence of, or otherwise in connection with, provision made under subsection (1) (including provision so made by virtue of paragraph (a) of this subsection).
(4)The regulations may make different provision for different cases.]
Textual Amendments
F1S. 274A inserted (6.4.2006) by Finance Act 2005 (c. 7), Sch. 10 paras. 50, 64(1)
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).
Modifications etc. (not altering text)
C1S. 275 modified (6.4.2006) by The Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) Regulations 2006 (S.I. 2006/207), regs. 1(1), 11
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.
Modifications etc. (not altering text)
C2S. 276 modified (6.4.2006) by The Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) Regulations 2006 (S.I. 2006/207), regs. 1(1), 12
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.
[F2(3A)For the purposes of this Part the market value of taxable property, or of an interest in taxable property, is to be determined in accordance with section 272 of TCGA 1992.
(3B)Subsection (3A) is subject to any provision made by regulations under paragraph 36(2) of Schedule 29A.]
[F3(4)For the purposes of this section whether a person is connected with another person is determined in accordance with section 993 of ITA 2007.]
Textual Amendments
F2S. 278(3A)(3B) inserted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 158(2), Sch. 21 para. 11
F3S. 278(4) substituted (with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 479 (with Sch. 2)
279Other definitionsU.K.
(1)In this Part—
[F4“abatement”, in relation to a scheme pension [F5to which a person has become entitled] under a public service pension scheme, means the reduction of the pension (including its reduction to nil) in accordance with the rules of the pension scheme by reason of [F6the person's employment] in public service,]
“the Board of Inland Revenue” means the Commissioners of Inland Revenue,
F7...
“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), [F8and]
“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,
F9...
[F10(1A)In this Part, so far as it forms part of the Corporation Tax Acts, expressions which are defined for the purposes of the Income Tax Acts are to be given the same meaning as they have in the Income Tax Acts.]
(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.
Textual Amendments
F4Words in s. 279(1) inserted (6.4.2006) by Finance Act 2005 (c. 7), Sch. 10 paras. 9, 64(1)
F5Words in s. 279(1) inserted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 33(a)
F6Words in s. 279(1) substituted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 33(b)
F7Words in s. 279(1) repealed (with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 480(2)(a), Sch. 3 Pt. 1 (with Sch. 2)
F8Word in s. 279(1) inserted (with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 480(2)(b) (with Sch. 2)
F9Words in s. 279(1) repealed (with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 480(2)(c), Sch. 3 Pt. 1 (with Sch. 2)
F10S. 279(1A) inserted (with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 480(3) (with Sch. 2)
Modifications etc. (not altering text)
C3S. 279 modified (6.4.2006) by The Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) Regulations 2006 (S.I. 2006/207), regs. 1(1), 13
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), F11...
“ITEPA 2003” means the Income Tax (Earnings and Pensions) Act 2003 (c. 1), F12...
[F13 “ITTOIA 2005” means the Income Tax (Trading and Other Income Act) 2005] F14...
“CTA 2009” means the Corporation Tax Act 2009.]
(2)In this Part the following expressions are defined or otherwise explained by the provisions indicated—
| [F17abatement | section 279(1)] |
| accounting period | section 834(1) of ICTA |
| [F18acquiring an interest in property (for the purposes of the taxable property provisions) | paragraphs 12 and 27 to 29 of Schedule 29A] |
| active member (of a pension scheme) | section 151(2) |
| active membership period (insections 221 to 223) | section 221(4) and (5) |
| [F19additional rate | section 6(2) of ITA 2007 (as applied by section 989 of that Act)] |
| amount crystallised | section 216 |
| annual allowance | section 228 |
| annual allowance charge | section 227(1) |
| annuity protection lump sum death benefit | paragraph 16 of Schedule 29 |
| arrangement | section 152(1) |
| authorised surplus payment | section 177 |
| available (in relation to a person’s lifetime allowance) | section 219 |
| basic rate | [F20section 6(2) of ITA 2007 (as applied by section 989 of that Act)] |
| basic rate limit | [F21section [F2210] of ITA 2007 (as applied by section 989 of that Act)] |
| benefits (provided by pension scheme) | section 279(2) |
| benefit crystallisation event | section 216 |
| the Board of Inland Revenue | section 279(1) |
| borrowing (in Chapter 3) | section 163 |
| [F18building (for the purposes of the taxable property provisions) | paragraph 7(2) of Schedule 29A] |
| cash balance arrangement | section 152(3) |
| cash balance benefits | section 152(5) |
| chargeable gain | [F23section 989 of ITA 2007] |
| charity | [F24section 989 of ITA 2007] |
| company | [F25section 992 of ITA 2007] |
| compensation payment | section 178 |
| contribution | sections188(4) to (6) and 195 |
| defined benefits | section 152(7) |
| defined benefits arrangement | section 152(6) |
| defined benefits lump sum death benefit | paragraph 13 of Schedule 29 |
| dependant’s alternatively secured pension fund | paragraph 25 of Schedule 28 |
| [F26dependants' annuity | paragraph 17 of Schedule 28] |
| dependants' scheme pension | paragraph 16 of Schedule 28 |
| [F26dependants' short-term annuity | paragraph 20 of Schedule 28] |
| dependant’s unsecured pension fund | paragraph 22 of Schedule 28 |
| employee and employer (and employment) | section 279(1) |
| employment income | section 7(2) of ITEPA 2003 |
| enhanced lifetime allowance regulations | section 256(2) |
| entitled (in relation to a lump sum) | section 166(2) |
| entitled (in relation to a pension) | section 165(3) |
| higher rate | [F27section 6(2) of ITA 2007 (as applied by section 989 of that Act)] |
| [F28higher rate limit | section 10 of ITA 2007] |
| [F18holding an interest in a person (for the purposes of the taxable property provisions) | paragraph 16(2) to (4) of Schedule 29A] |
| [F18holding an interest in property (for the purposes of the taxable property provisions) | paragraph 13 of Schedule 29A] |
| [F18holding directly an interest in a vehicle (for the purposes of the taxable property provisions) | paragraph 20(3) of Schedule 29A] |
| [F18holding directly an interest in property (for the purposes of the taxable property provisions) | paragraphs 14 and 15 of Schedule 29A] |
| [F18holding indirectly an interest in a vehicle (for the purposes of the taxable property provisions) | paragraph 20(4) of Schedule 29A] |
| [F18holding indirectly an interest in property (for the purposes of the taxable property provisions) | paragraph 16(1) of Schedule 29A] |
| hybrid arrangement | section 152(8) |
| ill-health condition | paragraph 1 of Schedule 28 |
| the individual (in sections 215 to 219) | section 214(5) |
| the Inland Revenue | section 279(1) |
| insurance company | section 275 |
| [F18investment-regulated pension scheme (for the purposes of the taxable property provisions) | paragraphs 1 to 3 of Schedule 29A] |
| 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 charge | section 214(1) |
| lifetime allowance enhancement factors | section 218(5) |
| lifetime allowance excess lump sum | paragraph 11 of Schedule 29 |
| lifetime annuity | paragraph 3 of Schedule 28 |
| loan (in Chapter 3) | section 162 |
| lump sum death benefit | section 168(2) |
| market value | section 278 |
| member (of a pension scheme) | section 151(1) |
| member’s alternatively secured pension fund | paragraph 11 of Schedule 28 |
| member’s unsecured pension fund | paragraph 8 of Schedule 28 |
| money purchase arrangement | section 152(2) |
| money purchase benefits | section 152(4) |
| [F29net income | section 23 of ITA 2007 (as applied by section 989 of that Act),] |
| net pay pension scheme | section 191(9) |
| normal minimum pension age | section 279(1) |
| occupational pension scheme | section 150(5) |
| overseas arrangement active membership period (in sections 224 to 226) | section 224(7) and (8) |
| overseas pension scheme | section 150(7) |
| payment (in Chapter 3) | section 161 |
| payments (made by pension scheme) | section 279(2) |
| pension | section 165(2) |
| pension commencement lump sum | paragraph 1of Schedule 29 |
| pension credit and pension debit | section 279(1) |
| [F30pension death benefit | section 167(2)] |
| pension input amount | section 229 |
| pension input period | section 238 |
| pension protection lump sum death benefit | paragraph 14 of Schedule 29 |
| pension scheme | section 150(1) |
| the pension scheme (in sections 215 to 219) | section 214(5) |
| pension sharing order or provision | section 279(1) |
| pensioner member (of a pension scheme) | section 151(3) |
| period of account | [F31section 989 of ITA 2007] |
| personal representatives | [F32section 989 of ITA 2007] |
| property investment LLP | [F33section 1004 of ITA 2007] |
| public service pension scheme | section 150(3) |
| qualifying recognised overseas pension scheme | section 169(2) |
| recognised overseas pension scheme | section 150(8) |
| recognised overseas scheme arrangement (insections 224 to 226) | section 224(2) and (3) |
| registered pension scheme | section 150(2) |
| [F34related dependants' annuity | paragraph 3(4A) of Schedule 29] |
| [F35related dependants' scheme pension | paragraph 3(7C) of Schedule 29] |
| relevant overseas individual | section 221(3) |
| relevant UK earnings | section 189(2) |
| relevant UK individual | section 189 |
| relevant valuation factor | section 276 |
| relievable pension contributions | section 188(2) and (3) |
| [F18residential property (for the purposes of the taxable property provisions) | paragraphs 7(1), 8 and 9 of Schedule 29A] |
| retail prices index | [F36section 989 of ITA 2007] |
| scheme administrator | section 270 (but see also sections 271 to 274) |
| scheme chargeable payment | section 241 |
| [F18scheme-held taxable property | section 185B(3)] |
| scheme manager | section 169(3) |
| scheme pension | paragraph 2 of Schedule 28 |
| scheme sanction charge | section 239(1) |
| serious ill-health lump sum | paragraph 4 of Schedule 29 |
| short service refund lump sum | paragraph 5 of Schedule 29 |
| short service refund lump sum charge | section 205(1) |
| [F26short-term annuity | paragraph 6 of Schedule 28] |
| special lump sum death benefits charge | section 206(1) |
| sponsoring employer | section 150(6) |
| standard lifetime allowance | section 218(2) and (3) |
| sums and assets held for the purposes of an arrangement | section 279(3) |
| [F18sums and assets held for the purposes of an arrangement (for the purposes of the taxable property provisions) | paragraph 5 of Schedule 29A] |
| [F18taxable property (for the purposes of the taxable property provisions) | paragraphs 6, 10 and 11 of Schedule 29A] |
| [F18the taxable property provisions | paragraph 1(3) of Schedule 29A] |
| tax year | [F37section 4(2) of ITA 2007 (as applied by section 989 of that Act)] |
| the tax year 2006-07 etc. | [F38section 4(4) of ITA 2007 (as applied by section 989 of that Act)] |
| total income | [F39section 23 of ITA 2007 (as applied by section 989 of that Act)] |
| total pension input amount | section 229 |
| F40. . . | F40. . . |
| trivial commutation lump sum | paragraph 7 of Schedule 29 |
| unauthorised employer payment | section 160(4) |
| unauthorised member payment | section 160(2) |
| unauthorised payment | section 160(5) |
| unauthorised payments charge | section 208(1) |
| unauthorised payments surcharge | section 209(1) |
| uncrystallised funds lump sum death benefit | paragraph 15 of Schedule 29 |
| unsecured pension fund lump sum death benefit | paragraph17of Schedule 29 |
| valuation assumptions (in relation to a person) | section 277 |
| [F18vehicle (in the taxable property provisions) | paragraph 20(2) of Schedule 29A] |
| winding-up lump sum | paragraph 10 of Schedule 29 |
| winding-up lump sum death benefit | paragraph 21 of Schedule 29 |
Textual Amendments
F11Word in s. 280(1) repealed (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 652, Sch. 3 (with Sch. 2)
F12Word in s. 280(1) repealed (with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 481(2), Sch. 3 Pt. 1 (with Sch. 2)
F13Words in s. 280(1) inserted (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 652 (with Sch. 2)
F14Word in s. 280(1) repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 580(a), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)
F15Words in s. 280(1) inserted (with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 481(2) (with Sch. 2)
F16Words in s. 280(1) inserted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 580(b) (with Sch. 2 Pts. 1, 2)
F17Words in s. 280(2) inserted (6.4.2006) by Finance Act 2005 (c. 7), Sch. 10 paras. 10, 64(1)
F18Words in s. 280(2) inserted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 158(2), Sch. 21 para. 12
F19Words in s. 280(2) inserted (with effect in accordance with s. 68(5) of the amending Act) by Finance Act 2010 (c. 13), s. 68(2)
F20Words in s. 280(2) substituted (with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 481(3)(a) (with Sch. 2)
F21Words in s. 280(2) substituted (with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 481(3)(b) (with Sch. 2)
F22Word in s. 280(2) substituted (with effect in accordance with s. 68(6) of the amending Act) by Finance Act 2010 (c. 13), s. 68(3)
F23Words in s. 280(2) substituted (with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 481(3)(c) (with Sch. 2)
F24Words in s. 280(2) substituted (with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 481(3)(d) (with Sch. 2)
F25Words in s. 280(2) substituted (with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 481(3)(e) (with Sch. 2)
F26Words in s. 280(2) inserted (6.4.2006) by Finance Act 2005 (c. 7), Sch. 10 paras. 17, 64(1)
F27Words in s. 280(2) substituted (with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 481(3)(f) (with Sch. 2)
F28Words in s. 280(2) inserted (with effect in accordance with s. 68(5) of the amending Act) by Finance Act 2010 (c. 13), s. 68(4)
F29Words in s. 280(2) inserted (with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 481(3)(g) (with Sch. 2)
F30Words in s. 280(2) inserted (retrospective to 6.4.2006) by Finance Act 2007 (c. 11), Sch. 20 paras. 22(2), 24(3)
F31Words in s. 280(2) substituted (with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 481(3)(h) (with Sch. 2)
F32Words in s. 280(2) substituted (with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 481(3)(i) (with Sch. 2)
F33Words in s. 280(2) substituted (with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 481(3)(j) (with Sch. 2)
F34Words in s. 280(2) inserted (6.4.2006) by Finance Act 2005 (c. 7), Sch. 10 paras. 33, 64(1)
F35Words in s. 280(2) inserted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 26
F36Words in s. 280(2) substituted (with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 481(3)(k) (with Sch. 2)
F37Words in s. 280(2) substituted (with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 481(3)(l) (with Sch. 2)
F38Words in s. 280(2) substituted (with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 481(3)(m) (with Sch. 2)
F39Words in s. 280(2) substituted (with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 481(3)(n) (with Sch. 2)
F40S. 280(2) entry repealed (19.7.2007) (with effect in accordance with Sch. 19 para. 29(3) of the amending Act) by Finance Act 2007 (c. 11), Sch. 19 para. 8, Sch. 27 Pt. 3(1)