The Personal Pension Schemes (Relief at Source) Regulations 1988

Explanatory Note

(This note is not part of the Regulations)

These Regulations supplement section 639 of the Income and Corporation Taxes Act 1988 (“section 639”) which provides for relief by deduction from contributions made under approved pension arrangements (“arrangements”) made in accordance with an approved personal pension scheme (“scheme”) in such cases and subject to such conditions as the Commissioners of the Inland Revenue (“the Board”) may prescribe in regulations.

Section 639(3) provides that an individual who is entitled to relief under section 639(1) in respect of a contribution may deduct from the contribution when he pays it, and may retain, an amount equal to income tax at the basic rate. Section 639(4) provides that the administrator of a scheme shall accept the amount paid after deduction in discharge of an individual’s liability to the same extent as if the deduction had not been made, and may recover an amount equal to the deduction from the Commissioners of Inland Revenue (“the Board”).

Regulation 1 provides for citation and commencement and regulation 2 for interpre- tation.

Regulation 3 introduces regulations 4 to 7 which prescribe the cases in which, and the conditions subject to which, relief shall be given in accordance with section 639(3) and (4).

Regulation 8 introduces regulations 9 and 10 which, respectively, provide a system of interim and annual claims by which scheme administrators may recover from the Board amounts equal to those deducted under section 639(3). Regulation 11 contains supplementary provisions including a right of appeal against decisions on annual claims.

Regulation 12 provides that when, following the withdrawal of approval of a scheme or of arrangements, the scheme administrator gives information to the Board he shall at the same time pay to them the difference between the amount (if any) of relief obtained under section 639(1) by means of contributions paid net and the amount of such relief actually due.

Regulation 13 provides for the recovery by assessment from administrators of schemes of amounts paid to them by the Board to which they were not entitled, which are recoverable in default or which are recoverable following the withdrawal of approval of a scheme or of arrangements.

Regulation 14 provides that the Board may require a present, or former, administrator of a scheme, or an individual who has paid net contributions, to give information to them. In addition, the regulation provides that if the Board withdraw their approval of a scheme or of arrangements, or if an individual who has paid net contributions fails to comply with regulations 5 to 7, the administrator of the scheme shall give information to them.

Regulation 15 provides for the inspection by a person authorised by the Board of books, documents and records.