SCHEDULES

SCHEDULE 35Pension schemes etc: minor and consequential amendments

Income and Corporation Taxes Act 1988 (c. 1)

2

The Income and Corporation Taxes Act 1988 (c. 1) is amended as follows.

Annotations:
Commencement Information

I1Ss. 160-274, 281, Schs. 30-35 in force at 6.4.2006 but any power to make an order or regulations under those provisions may be exercised at any time after Royal Assent, see s. 284

3

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).”

Annotations:
Commencement Information

I2Ss. 160-274, 281, Schs. 30-35 in force at 6.4.2006 but any power to make an order or regulations under those provisions may be exercised at any time after Royal Assent, see s. 284

4

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 ”.

Annotations:
Commencement Information

I3Ss. 160-274, 281, Schs. 30-35 in force at 6.4.2006 but any power to make an order or regulations under those provisions may be exercised at any time after Royal Assent, see s. 284

F15

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6

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 ”.

Annotations:
Commencement Information

I4Ss. 160-274, 281, Schs. 30-35 in force at 6.4.2006 but any power to make an order or regulations under those provisions may be exercised at any time after Royal Assent, see s. 284

F27

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F38

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9

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, ”.

Annotations:
Commencement Information

I5Ss. 160-274, 281, Schs. 30-35 in force at 6.4.2006 but any power to make an order or regulations under those provisions may be exercised at any time after Royal Assent, see s. 284

10

(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)

For the purposes of subsection (1)(a) benefits are provided in respect of an employee if they are provided for the employee’s spouse F4or civil partner, widow or widower F5or surviving civil partner, children, dependants or personal representatives.

(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—

A×BCmath

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).”

F611

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F712

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F813

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F814

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F815

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F816

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F817

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F918

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F1019

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F1120

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21

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;”.

Annotations:
Commencement Information

I7Ss. 160-274, 281, Schs. 30-35 in force at 6.4.2006 but any power to make an order or regulations under those provisions may be exercised at any time after Royal Assent, see s. 284

22

(1)

Section 466 (interpretation of Chapter 2 of Part 12) is amended as follows.

(2)

In subsection (2), omit the definition of “pension business”.

F12(3)

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Annotations:
Amendments (Textual)

F12Sch. 35 para. 22(3) repealed (with effect in accordance with s. 38 of the amending Act) by Finance Act 2007 (c. 11), Sch. 27 Pt. 2(7)

Commencement Information

I8Ss. 160-274, 281, Schs. 30-35 in force at 6.4.2006 but any power to make an order or regulations under those provisions may be exercised at any time after Royal Assent, see s. 284

F1323

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F1424

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F1525

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26

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 ”.

Annotations:
Commencement Information

I9Ss. 160-274, 281, Schs. 30-35 in force at 6.4.2006 but any power to make an order or regulations under those provisions may be exercised at any time after Royal Assent, see s. 284

F1627

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F1728

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F1829

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F1930

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F2031

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F2132

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33

In section 824(9) (repayment supplements), after “settlement” insert “, scheme administrators of registered pension schemes F22sub-scheme administrators of sub-schemes which form part of a split scheme pursuant to the Registered Pensions (Splitting of Schemes) Regulations 2006.

F2334

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F2335

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F2336

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