The Personal Pension Schemes (Conversion of Retirement Benefits Schemes) Regulations 2001

Board’s discretion to refuse approval: prescribed classes of individual member

6.—(1) The classes of individual member of an eligible scheme which are prescribed for the purposes of paragraph 4(1) of Schedule 23ZA are—

(a) in the case of a scheme of which a controlling director is to be a continuing member, the classes mentioned in paragraph (2); and

(b) in any other case, the class mentioned in paragraph (3).

(2) The classes referred to in paragraph (1)(a) are those comprising—

(a) controlling directors;

(b) persons who are connected with a person falling within sub-paragraph (a); and

(c) members of the scheme—

(i) whose age at the proposed date of change will be not less than 45 years; and

(ii) whose remuneration derived from their employment with the relevant employer is, or was, for any year of assessment falling (wholly or partly) during the period of six years prior to the date on which the application is made, more than the permitted maximum for the year of assessment in which the application is made.

(3) The class referred to in paragraph (1)(b) is that comprising members of the scheme—

(a) whose age at the proposed date of change will be not less than 45 years; and

(b) whose remuneration derived from employment with the relevant employer is, or was, for any year of assessment falling (wholly or partly) during the period of six years prior to the date on which the application is made, more than the permitted maximum for the year of assessment in which the application is made.

(4) For the purposes of paragraph (2) a person is connected with another if he is—

(a) that person’s husband or wife;

(b) that person’s brother, sister, parent or remoter forebear, child or remoter lineal descendant;

(c) the husband or wife of a brother, sister, parent or remoter forebear, child or remoter lineal descendant of that person; or

(d) a brother, sister, parent or remoter forebear, child or remoter lineal descendant of that person’s husband or wife.

(5) In this regulation—

• “permitted maximum” has the meaning given in section 590C(2)(1); and

• “remuneration” has the meaning given in section 612(1).

(1)

Section 590C was inserted by paragraph 4 of Schedule 6 to the Finance Act 1989 (c. 26). There are amendments not relevant for the purposes of the present instrument. The permitted maximum for the year of assessment 2000–01 is £91,800.