Insurance company liable as scheme administrator
2.—(1) This regulation applies where an insurance company makes a payment of—
(a)a pension protection lump sum death benefit,
(b)an annuity protection lump sum death benefit, or
(c)an unsecured pension fund lump sum death benefit.
(2) The insurance company is to be treated as the scheme administrator for the purposes of the operation of section 206 (special lump sum death benefits charge) in relation to the lump sum death benefit.
(3) The insurance company is responsible for the discharge of the obligations imposed on the scheme administrator under subsections (1) to (7) of section 254 (accounting for tax by scheme administrators).
(4) The insurance company is liable to the penalties under—
(a)section 260(1) (accounting return) if it fails to comply with the obligations imposed by section 254(1) to (7) as applied to it by virtue of paragraph (2); and
(b)section 260(6) if it fraudulently or negligently makes an incorrect return under section 254(1) to (7) as so applied.