(This note is not part of the Regulations)
These Regulations amend the Retirement Benefits Schemes (Tax Relief on Contributions) (Disapplication of Earnings Cap) Regulations 1990 (S.I. 1990/586) (“the principal Regulations”).
The principal Regulations provide for the disapplication of the earnings cap when calculating tax relief on contributions to exempt approved retirement benefits schemes and relevant statutory schemes in the circumstances specified in those Regulations.
These Regulations, in addition to amendments of a drafting nature (regulations 3 and 4), prescribe in regulation 5 additional circumstances in which the earnings cap is disapplied, namely where, as a result of bad investment advice, a person fails to become, or ceases to be, a member of an exempt approved retirement benefits scheme or a relevant statutory scheme and instead becomes a member of a personal pension scheme or enters into a retirement annuity contract, and subsequently as part of compensation for loss suffered becomes, or is reinstated as, a member of an exempt approved retirement benefits scheme or a relevant statutory scheme.