These Regulations make various amendments to the Retirement Benefits Schemes (Restriction on Discretion to Approve) (Small Self-administered Schemes) Regulations 1991 (S.I.1991/1614) (“the principal Regulations”) which impose restrictions on the Board of Inland Revenue’s discretion to approve under section 591 of the Income and Corporation Taxes Act 1988 retirement benefits schemes that are small self-administered schemes.

Regulation 1 provides for citation and commencement, and regulation 2 for interpretation.

Regulation 3 omits the definition of “administrator” from paragraph (1) of regulation 2 of the principal Regulations (in consequence of the revocation of regulation 10 of the principal Regulations by regulation 10 of these Regulations) and substitutes a new definition of “small self-administered scheme” in that paragraph.

Regulations 4 and 5 amend regulation 4 of the principal Regulations which restricts the amount which the scheme trustees are permitted to borrow. Regulation 4 amends paragraph (1)(c) of regulation 4 of the principal Regulations so as to provide that the restriction in the maximum amount which the trustees are permitted to borrow shall be calculated by reference to 45 per cent. of the amount that results after deducting from the market value of the assets of the scheme at the time of the borrowing, other than assets used in the payment of a pension, any sums borrowed to purchase those assets and other liabilities of the scheme which are outstanding at that time. Regulation 5 amends the definition of “ordinary annual contribution” in paragraph (2) of regulation 4 of the principal Regulations.

Regulation 6 amends regulation 5(1) of the principal Regulations so as to amend the limit on the number of shares in an unlisted company which may be held by the scheme trustees.

Regulation 7 adds a paragraph to regulation 5 of the principal Regulations so as to provide that the restriction from holding residential property as an investment imposed by that regulation does not extend to a right held by the scheme trustees to receive any rentcharge or other annual payment reserved in respect of such property.

Regulation 8 amends regulation 7 of the principal Regulations so as to provide that the limit on the aggregate of the amount of money which may be lent to an employer by the scheme trustees and the market value of shares in the employer company which the trustees may hold, shall be calculated by reference to the specified percentage of the amount that results after deducting from the market value of the assets of the scheme at the relevant time, other than assets used in the payment of a pension, any sums borrowed to purchase those assets and other liabilities of the scheme which are outstanding at that time.

Regulation 9 substitutes a new regulation 9 of the principal Regulations relating to pensioneer trustees.

Regulation 10 revokes regulation 10 of the principal Regulations (provisions as to furnishing of information and documents by the administrator of a scheme) which is superseded by the Retirement Benefits Schemes (Information Powers) Regulations 1995 (S.I.1995/3103).