SCHEDULES
SCHEDULE 35Pension schemes etc: minor and consequential amendments
Income and Corporation Taxes Act 1988 (c. 1)
I12
The Income and Corporation Taxes Act 1988 (c. 1) is amended as follows.
I23
In section 21A(2) (Schedule A: computation of amount chargeable), insert at the end—
sections 196 to 200 of the Finance Act 2004 (registered pension schemes); section 246 of that Act (employer-financed retirement benefits schemes).
I34
In section 56(3)(b)
(transfers in deposits and debts: exemption for pensions), for “592(2), 613, 614 (1) to (3) or 620(6)” substitute “
613(4) or 614(2) or (3) or section 186 of the Finance Act 2004
”
.
F15
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I46
In section 129B(2)
(stock lending fees), for “sections 592(2), 608(2)(a), 613(4), 614(3), 620(6) and 643(2)” substitute “
sections 613(4) and 614(3) and section 186 of the Finance Act 2004
”
.
F217
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F118
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I59
In section 266 (1)
(life assurance premiums), for “sections 274 and 619(6) and Schedules 14 and 15,” substitute “
section 274 and Schedules 14 and 15 and sections 192 to 194 of the Finance Act 2004,
”
.
I610
1
Section 266A (life assurance premiums paid by employer) is amended as follows.
2
In subsection (1), for “a non-approved” substitute “
an employer-financed
”
.
3
For subsections (3) to (6) substitute—
3
4
If a sum within subsection (1) is paid with a view to the provision of benefits for or in respect of more than one employee of the employer, part of it is to be treated as paid for or in respect of each of them.
5
The amount treated as paid for or in respect of each employee is—
where—
A is the sum paid,
B is the amount which would have had to be paid to secure the benefits to be provided for or in respect of the employee in question, and
C is the total amount which would have had to be paid to secure the benefits to be provided for or in respect of all the employees if separate payments had been made in the case of each of them.
6
This section does not apply if—
a
in the year of assessment in which the sum is paid the earnings from the employee’s employment are (or, if there are none, would be if there were any) earnings charged on remittance, or
b
the employee is not domiciled in the United Kingdom in the tax year in which the sum is paid and the conditions in subsection (7) are met.
7
Those conditions are—
a
that the employment is with a foreign employer, and
b
that, on a claim made by the employee, the Board are satisfied that the pension scheme corresponds to a registered pension scheme.
8
In subsection (6)(a) “earnings charged on remittance” means earnings which are taxable earnings under—
a
section 22 of ITEPA 2003 (chargeable overseas earnings for year when employee resident and ordinarily resident, but not domiciled, in UK), or
b
section 26 of that Act (foreign earnings for year when employee resident, but not ordinarily resident, in UK).
9
In this section—
“employer-financed retirement benefits scheme”, and
>“relevant benefits”,
have the same meaning as in Chapter 2 of Part 6 of ITEPA 2003 (see sections 393A and 393B of that Act).
I711
In section 268(7)(b)
(early conversion or surrender of rights: life policies not covered), for “an approved scheme, as defined in Chapter 1 of Part 14;” substitute “
a registered pension scheme;
”
.
F1912
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F1013
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F1014
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F1015
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F1016
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F1017
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F2218
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F2319
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I820
For section 431B (life assurance: meaning of “pension business”) substitute—
431BMeaning of “pension business”
1
In this Chapter “pension business” means so much of a company’s life assurance business as is referable to contracts entered into for the purposes of a registered pension scheme or is the reinsurance of such business.
2
Where a pension scheme ceases to be a registered pension scheme F6by virtue of the withdrawal of registration of the pension scheme under section 157 of the Finance Act 2004, any of the company’s life assurance business that was pension business when the pension scheme was a registered pension scheme is to be treated as ceasing to be pension business at the beginning of the period of account of the company in which the pension scheme F7so ceases to be a registered pension scheme.
F83
Where—
a
immediately before 6th April 2006 an annuity contract falls within any of the descriptions of contracts specified in subsection (2) of this section as it had effect immediately before that date, but
b
on or after that date the contract does not fall to be regarded for the purposes of this section as having been entered into for the purposes of a registered pension scheme,
the contract is to be treated for the purposes of this section as having been entered into for such purposes.
I921
In section 464(5) (policies and contracts to be disregarded in applying limits on benefits payable to member of friendly society), for paragraph (b) substitute—
b
any policy of insurance or annuity contract by means of which the benefits to be provided under an occupational pension scheme (within the meaning of section 150(5) of the Finance Act 2004) are secured or any annuity contract which constitutes a registered pension scheme or is issued or held in connection with a registered pension scheme other than such an occupational pension scheme;
I1022
1
Section 466 (interpretation of Chapter 2 of Part 12) is amended as follows.
2
In subsection (2), omit the definition of “pension business”.
F163
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F2423
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F224
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F1725
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I1126
In section 613(4) (parliamentary pension funds)—
a
omit “respective” and paragraphs (b) to (d), and
b
for “those funds”
(in both places) substitute “
that Fund
”
.
F1827
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F328
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F1229
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F1330
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F1431
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F1532
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I1233
In section 824(9)
(repayment supplements), after “settlement” insert “, scheme administrators of registered pension schemes F9sub-scheme administrators of sub-schemes which form part of a split scheme pursuant to the Registered Pensions (Splitting of Schemes) Regulations 2006”
.
F2034
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F2035
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F2036
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