Finance Act 2009

Finance Act 2009

2009 CHAPTER 10

Introduction

Section 75: Power to Make Retrospective Non-Charging Provision

Summary

1. Section 75 provides that any order or regulations made under the pensions tax rules in Part 4 of the Finance Act (FA) 2004 may apply retrospectively if they do not increase any person’s tax liability. The section amends section 282 of FA 2004. The changes will have effect on and after the date of Royal Assent.

Details of the Section

2. Subsection (1) inserts new subsections (A1) and (A2) into section 282 of FA 2004 to amend the powers to make an order or regulations under Part 4 of FA 2004.

3. New subsection (A1) provides that any order or regulations made under Part 4 may have retrospective effect if they do not increase any person’s tax liability.

4. New subsection (A2) provides that the new general power in subsection (A1) does not limit other existing specific powers in Part 4 that allow an order or regulations to apply retrospectively.

5. Subsections (2)-(3) remove various existing provisions that allow an order or regulations to apply retrospectively if they do not increase any person’s tax liability. These are no longer needed if they are replaced by the new general power in subsection (A1).

Background Note

6. The pensions tax rules are set out in Part 4 of the Finance Act 2004. Further detailed rules are provided in orders and regulations made under powers in Part 4.

7. Many of the order and regulation-making powers in Part 4 already specifically provide that the order or regulations may take effect retrospectively if they do not increase any person’s tax liability.

8. The proposed changes extend this so that those orders and regulations on pensions tax issues which currently cannot apply retrospectively, may do so provided they do not increase any person’s tax liability.