SCHEDULES

SCHEDULE 29Further provision about pension schemes

Inheritance tax treatment of non-UK pension schemes

18

1

IHTA 1984 is amended as follows.

2

In section 12(2) (dispositions conferring benefits under pension scheme), for “or” substitute “ , a qualifying non-UK pension scheme or a ”.

3

In section 58 (meaning of relevant property)—

a

in subsection (1)(d), for “or” substitute “ , a qualifying non-UK pension scheme or a ”, and

b

in subsection (2A)(b), after “member of” insert “ a qualifying non-UK pension scheme or ”.

4

In section 151(2), (4) and (5) (treatment of pension rights etc), for “or section” substitute “ , a qualifying non-UK pension scheme or a section ”.

5

In section 152 (cash options), for “or section” substitute “ , a qualifying non-UK pension scheme or a section ”.

6

After section 271 insert—

271AQualifying non-UK pension scheme

1

For the purposes of this Act “qualifying non-UK pension scheme” means a pension scheme (other than a registered pension scheme) which—

a

is established in a country or territory outside the United Kingdom, and

b

satisfies any requirements prescribed for the purposes of this section by regulations made by the Commissioners for Her Majesty's Revenue and Customs.

2

“Pension scheme” has the same meaning as in Part 4 of the Finance Act 2004 (see section 150 of that Act).

3

Regulations under this section may include provision having effect in relation to times before the regulations are made if it does not increase any person's liability to tax.

4

The power to make regulations under this section is exercisable by statutory instrument, which is subject to annulment in pursuance of a resolution of the House of Commons.

7

In paragraph 56 of Schedule 36 to FA 2004 (pension schemes: transitional provision in relation to inheritance tax)—

a

in sub-paragraph (1)(a), after “registered pension scheme” insert “ , a qualifying non-UK pension scheme ”, and

b

after sub-paragraph (3) insert—

4

In this paragraph “qualifying non-UK pension scheme” has the same meaning as in the Inheritance Tax Act 1984 (see section 271A of that Act).

8

The amendments made by this paragraph are treated as having come into force on 6 April 2006.