C7C16C18C14C12C2C9C8C4C15C3C17C1C6C13Part 4Pension schemes etc

Annotations:
Modifications etc. (not altering text)
C9

Pt. 4 modified (1.7.2008) (N.I.) (with effect in accordance with reg. 1 of the amending Rule) by The Health and Social Care (Pension Scheme) Regulations (Northern Ireland) 2008 (S.R. 2008/256), regs. 1, 124(1) (with regs. 134, 258)

C4

Pt. 4 applied (21.7.2009) by Finance Act 2009 (c. 10), Sch. 35 para. 18

C15

Pt. 4 modified (19.7.2011) by Finance Act 2011 (c. 11), Sch. 18 para. 14(3)

C3

Pt. 4 applied (with modifications) (with application in accordance with Sch. 22 para. 1 of the amending Act) by Finance Act 2013 (c. 29), Sch. 22 para. 1(2)

C17

Pt. 4 modified (17.7.2014) by Finance Act 2014 (c. 26), Sch. 6 para. 1(2)(3)

C1

Pt. 4: power to amend conferred (17.12.2014) by Taxation of Pensions Act 2014 (c. 30), s. 4(3)

C6

Pt. 4 modified (15.9.2016) by Finance Act 2016 (c. 24), Sch. 4 para. 1

C13

Pt. 4 modified (15.9.2016) by Finance Act 2016 (c. 24), Sch. 4 para. 9(2)

C15Chapter 8Supplementary

Interpretation

274AF15Power to split schemes

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.

C10275Insurance company

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, F66...

F70b

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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).

C5276Relevant valuation factor

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 assumptions

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 value

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.

F393A

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.

F24

For the purposes of this section whether a person is connected with another person is determined in accordance with section 993 of ITA 2007.

C11279Other definitions

1

In this Part—

  • F45“abatement”, in relation to a scheme pension F40to 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 F22the person's employment in public service,

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

  • F24“consumer prices index” means—

    1. a

      the general index for consumer prices published by the Statistics Board, or

    2. b

      if that index is not published for a relevant month, any substituted index or index figures published by the Statistics Board,

  • F68...

  • “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,

  • F64“normal minimum pension age” means—

    1. a

      in relation to, and to a member of, a pension scheme that is not a uniformed services pension scheme—

      1. i

        before 6 April 2010, 50,

      2. ii

        on and after that date but before 6 April 2028, 55, and

      3. iii

        on and after 6 April 2028, 57, and

    2. b

      in relation to, and to a member of, a uniformed services pension scheme—

      1. i

        before 6 April 2010, 50, and

      2. ii

        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), F55and

  • “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,

  • F24“pensionable age” has the meaning given by the rules in paragraph 1 of Schedule 4 to the Pensions Act 1995 or paragraph 1 of Schedule 2 to the Pensions (Northern Ireland) Order 1995,

  • F38“Scottish basic rate limit” means a rate limit set by the Scottish Parliament under section 80C(2A) of the Scotland Act 1998 for the purposes of determining the extent to which a Scottish taxpayer’s income is charged at the Scottish basic rate where a Scottish rate resolution under that Act has set more than one rate for the tax year.

  • F29...

F231A

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.

F521B

In this Part “Master Trust scheme” means a pension scheme—

a

that is a Master Trust scheme within the meaning of the Pension Schemes Act 2017 (see sections 1 and 2 of that Act) or corresponding provision in force in Northern Ireland, and

b

whose operation would be unlawful under Part 1 of that Act (Master Trusts), or corresponding provision in force in Northern Ireland, were the scheme not authorised under that Part or that corresponding provision.

1C

For the purposes of determining whether the condition in subsection (1B)(b) is met, the following are to be ignored—

a

any regulations under section 40 of the Pension Schemes Act 2017 (regulations modifying application of Part 1 of that Act);

b

any provision in force in Northern Ireland corresponding to regulations that could be made under that section.

1D

For the purposes of this Part a Master Trust scheme is “unauthorised” if—

a

it is not authorised under Part 1 of the Pension Schemes Act 2017 or corresponding provision in force in Northern Ireland, and

b

its operation would be unlawful under that Part or that corresponding provision without such authorisation.

1E

Section 1169 of the Companies Act 2006 (dormant companies) applies for the purposes of this Part.

F711F

For the purposes of this Part a “CMP-derived drawdown pension” means a drawdown pension (within the meaning given by paragraph 4 of Schedule 28) where—

a

the sums or assets constituting the fund from which the pension is payable were transferred from another pension scheme, and

b

before the transfer, those sums or assets were held for the purposes of paying CMP periodic income.

1G

For the purposes of this Part “CMP periodic income” means income payable by virtue of section 36(7)(b) or 87(7)(b) of the Pension Schemes Act 2021 (periodic income paid under collective money purchase arrangement while pursuing continuity option 1).

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.

F64

In this section “uniformed services pension scheme” means a pension scheme that—

a

is established by or under an enactment or Royal Warrant for the benefit of persons described in subsection (5) (whether or not other persons may be members of such a scheme), or

b

is established solely for the receipt of additional voluntary contributions from members of a scheme falling within paragraph (a),

subject to any regulations made under subsection (6).

5

Those persons are persons who are or were—

a

members of the naval, military or air forces of the Crown (including members of any reserve force);

b

members of a police force other than the Civil Nuclear Constabulary;

c

firefighters.

6

The Treasury may by regulations —

a

amend subsection (5) by adding to, varying or omitting descriptions of persons;

b

provide for a pension scheme not falling within subsection (4)(a) or (b) that is specified, or is of a specified description, to be treated as a uniformed services pension scheme;

c

provide for a pension scheme falling within subsection (4)(a) or (b) that is specified, or is of a specified description, to be treated as not being a uniformed services pension scheme.

“Specified” means specified in the regulations.

7

Regulations under subsection (6) may make transitional provision and savings.

280Abbreviations and general index

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)),

  • F9“FISMA 2000” means the Financial Services and Markets Act 2000 (c. 8), ...

  • F17“ITEPA 2003” means the Income Tax (Earnings and Pensions) Act 2003 (c. 1), ...

  • F25F36 “ITTOIA 2005” means the Income Tax (Trading and Other Income Act) 2005 ...

  • F32 “ITA 2007” means the Income Tax Act 2007,

  • F3F49“FA 2008” means the Finance Act 2008, ...

  • F14 “CTA 2009” means the Corporation Tax Act 2009F7and

  • “CTA 2010” means the Corporation Tax Act 2010

  • F13 “FA 2012” means the Finance Act 2012

2

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

F48abatement

section 279(1)

accounting period

section 834(1) of ICTA

F62acquiring 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)

F47additional 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

F12section 6(2) of ITA 2007 (as applied by section 989 of that Act)

basic rate limit

F33section F410 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

F62building (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

F61section 989 of ITA 2007

charity

F69section 989 of ITA 2007

F72CMP-derived drawdown pension

section 279(1F)

F72CMP periodic income

section 279(1G)

F60collective money purchase arrangement

section 152(3A)

F60collective money purchase benefits

section 152(5A)

company

F67section 992 of ITA 2007

compensation payment

section 178

F43consumer prices index

section 279(1)

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

F28. . .

F28. . .

F37dependant (of a member of a registered pension scheme)

paragraph 15 of Schedule 28

F56dependants' annuity

paragraph 17 of Schedule 28

F19dependant's flexi-access drawdown fund

paragraph 22A of Schedule 28

dependants' scheme pension

paragraph 16 of Schedule 28

F56dependants' short-term annuity

paragraph 20 of Schedule 28

F44. . .

F44. . .

F58dependant's drawdown pension fund

paragraph 22 of Schedule 28

F57dormant (in relation to a body corporate)

section 279(1E)

F35drawdown pension fund lump sum death benefit

paragraph 17 of Schedule 29

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)

F19flexi-access drawdown fund lump sum death benefit

paragraph 17A of Schedule 29

higher rate

F26section 6(2) of ITA 2007 (as applied by section 989 of that Act)

F51higher rate limit

section 10 of ITA 2007

F62holding an interest in a person (for the purposes of the taxable property provisions)

paragraph 16(2) to (4) of Schedule 29A

F62holding an interest in property (for the purposes of the taxable property provisions)

paragraph 13 of Schedule 29A

F62holding directly an interest in a vehicle (for the purposes of the taxable property provisions)

paragraph 20(3) of Schedule 29A

F62holding directly an interest in property (for the purposes of the taxable property provisions)

paragraphs 14 and 15 of Schedule 29A

F62holding indirectly an interest in a vehicle (for the purposes of the taxable property provisions)

paragraph 20(4) of Schedule 29A

F62holding 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

F62investment-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

F57Master Trust scheme

section 279(1B) and (1C)

member (of a pension scheme)

section 151(1)

F28. . .

F28. . .

F58member's drawdown pension fund

paragraph 8 of Schedule 28

F19member's flexi-access drawdown fund

paragraph 8A 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)

F34net income

section 23 of ITA 2007 (as applied by section 989 of that Act),

net pay pension scheme

section 191(9)

F37nominee (of a member of a registered pension scheme)

paragraph 27A of Schedule 28

F59nominees' annuity

paragraph 27AA of Schedule 28

F37nominees' drawdown pension

paragraph 27B of Schedule 28

F37nominee's flexi-access drawdown fund

paragraph 27E of Schedule 28

F37nominees' income withdrawal

paragraph 27D of Schedule 28

F37nominees' short-term annuity

paragraph 27C of Schedule 28

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)

F43pensionable age

section 279(1)

pension commencement lump sum

paragraph 1of Schedule 29

pension credit and pension debit

section 279(1)

F10pension death benefit

section 167(2)

pension input amount

section 229

pension input period

F1sections 238 to 238ZB

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

F42section 989 of ITA 2007

personal representatives

F63section 989 of ITA 2007

property investment LLP

F54section 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)

F31related dependants' annuity

paragraph 3(4A) of Schedule 29

F59related nominees' annuity

paragraph 3(4B) of Schedule 29

F20related 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)

F62residential property (for the purposes of the taxable property provisions)

paragraphs 7(1), 8 and 9 of Schedule 29A

retail prices index

F21section 989 of ITA 2007

scheme administrator

section 270 (but see also sections 271 to 274)

scheme chargeable payment

section 241

F62scheme-held taxable property

section 185B(3)

scheme manager

section 169(3)

scheme pension

paragraph 2 of Schedule 28

scheme sanction charge

section 239(1)

F8. . .

F8. . .

F8. . .

F8. . .

F8. . .

F8. . .

F41Scottish taxpayer

section 989 of ITA 2007

serious ill-health lump sum

paragraph 4 of Schedule 29

F53. . .

F53. . .

short service refund lump sum

paragraph 5 of Schedule 29

short service refund lump sum charge

section 205(1)

F56short-term annuity

paragraph 6 of Schedule 28

special lump sum death benefits charge

section F50206

sponsoring employer

section 150(6)

standard lifetime allowance

section 218(2) F27to (2C)

F37successor (of a member of a registered pension scheme)

paragraph 27F of Schedule 28

F59successors' annuity

paragraph 27FA of Schedule 28

F37successors' drawdown pension

paragraph 27G of Schedule 28

F37successor's flexi-access drawdown fund

paragraph 27K of Schedule 28

F37successors' income withdrawal

paragraph 27J of Schedule 28

F37successors' short-term annuity

paragraph 27H of Schedule 28

sums and assets held for the purposes of an arrangement

section 279(3)

F62sums and assets held for the purposes of an arrangement (for the purposes of the taxable property provisions)

paragraph 5 of Schedule 29A

F62taxable property (for the purposes of the taxable property provisions)

paragraphs 6, 10 and 11 of Schedule 29A

F62the taxable property provisions

paragraph 1(3) of Schedule 29A

tax year

F46section 4(2) of ITA 2007 (as applied by section 989 of that Act)

the tax year 2006-07 etc.

F30section 4(4) of ITA 2007 (as applied by section 989 of that Act)

total income

F65section 23 of ITA 2007 (as applied by section 989 of that Act)

total pension input amount

section 229

F16. . .

F16. . .

F18transitional 2013/14 lump sum

paragraph 11A of Schedule 29

trivial commutation lump sum

paragraph 7 of Schedule 29

unauthorised employer payment

section 160(4)

F57unauthorised (in relation to a Master Trust scheme)

section 279(1D)

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

F5uncrystallised funds pension lump sum

paragraph 4A of Schedule 29

F11. . .

F11. . .

valuation assumptions (in relation to a person)

section 277

F62vehicle (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