PART 1INTRODUCTION

Citation, commencement and effect1

1

These Regulations may be cited as the Registered Pension Schemes (Authorised Payments) Regulations 2009 and shall come into force on 1st June 2009.

2

These Regulations shall have effect—

a

for payments of a description within Part 2, in relation to payments made on or after 1st December 2009; and

b

for payments of a description within Part 3 or Part 4, in relation to payments made on or after 6th April 20063.

Interpretation2

1

Any reference in these Regulations to a numbered section or a paragraph of a Schedule, without more, is a reference to the section or paragraph of the Finance Act 2004 bearing that number.

2

Any reference in these Regulations to a person’s being entitled to a payment—

a

if it is a payment of pension (or intended to be such a payment), shall be construed in accordance with section 165(3) (pension rules)4, and related expressions shall be construed accordingly;

b

if it is a payment of a lump sum (or intended to be such a payment), shall be construed in accordance with section 166(2) (lump sum rule)5, and related expressions shall be construed accordingly.

3

For the purpose of these Regulations, whether a person is connected with another person is determined in accordance with section 993 of the ITA 2007 (meaning of “connected” persons)6.

4

For the purpose of these Regulations,

a

a pension scheme is related to another pension scheme if each of them is—

i

a registered pension scheme7 that is an occupational pension scheme8 or a public service pension scheme9, and

ii

a pension scheme relating to the same employment; but

b

if the context is whether a person is or is not a controlling director of a sponsoring employer10 of a pension scheme, only registered pension schemes that are occupational pension schemes are related to other such pension schemes.

5

In these Regulations—

  • “controlling director” has the meaning given by section 273(9) (members liable as scheme administrator);

  • “excluded transfer” means—

    1. a

      a recognised transfer11; or

    2. b

      any other transfer to the pension scheme of any sums or assets held for the purposes of, or representing accrued rights under, another pension scheme.

Prescribed payments and taxation

3

A payment by a registered pension scheme to or in respect of a member that is described in Part 2 of these Regulations—

a

is a payment of a prescribed description for the purposes of section 164(1)(f) (authorised member payments);

b

if paid to the member, shall be treated as a trivial commutation lump sum paid to the member for the purposes of Part 9 of ITEPA 2003 (pension income)12; and

c

if not paid to the member, shall be treated as a trivial commutation lump sum death benefit paid to the recipient for the purposes of Part 9 of ITEPA 200313.

4

A payment by a registered pension scheme that is described in Part 3 of these Regulations, to the extent specified in the regulation concerned—

a

is a payment of a prescribed description for the purposes of section 164(1)(f) of the Finance Act 2004;

b

shall be treated as pension paid to the recipient under a registered pension scheme for the purposes of Part 9 of ITEPA 2003; and

c

shall be treated for those purposes as pension accruing in the tax year in which it is paid.

5

A payment by a registered pension scheme that is described in Part 4 of these Regulations—

a

is a payment of a prescribed description for the purposes of section 164(1)(f) of the Finance Act 2004; and

b

shall be treated as a pension commencement lump sum paid under a registered pension scheme for the purposes of Part 9 of ITEPA 200314.