2011 No. 1751
The Registered Pension Schemes (Miscellaneous Amendments) Regulations 2011
Made
Laid before the House of Commons
Coming into force
The Commissioners for Her Majesty’s Revenue and Customs make the following Regulations in exercise of the powers conferred by sections 164(1)(f) and (2), 177, 254(4)(b), 273A(1) and (2), paragraphs 3(1)(d), 14(2) and 17(1)(c) of Schedule 28, paragraph 1(6) of Schedule 29, paragraph 12 of Schedule 34 and section 282(A1) of the Finance Act 20041, as the latter section has effect under paragraph 108 of Schedule 16 to the Finance Act 20112 and now exercisable by them3.
Citation, commencement and effect1
1
These Regulations may be cited as the Registered Pension Schemes (Miscellaneous Amendments) Regulations 2011 and come into force on 11th August 2011.
2
The amendments made by regulations 2, 3, 4, 5, 6, 8(2), (3) and (5) and 12(2) have effect for the tax year 2011–12 and subsequent tax years.
3
The amendment made by regulation 7 has effect in relation to lump sums paid on or after 6th April 2011.
4
The amendment made by regulation 8(4) has effect in relation to payments made on or after 6th April 2012.
5
The amendment made by regulation 8(6) has effect in relation to any payment of pension made in respect of a member who died on or after 6th April 2011.
6
The amendment made by regulation 10(2)(b) has effect subject to regulation 11.
7
The amendments made by regulation 12(3) and (4) have effect in relation to pension input periods4 ending in the tax year 2011-12 and subsequent tax years.
Amendment of the Pension Benefits (Insurance Company Liable as Scheme Administrator) Regulations 20062
1
The Pension Benefits (Insurance Company Liable as Scheme Administrator) Regulations 20065 are amended as follows.
2
For regulation 2(1)(c) (insurance company liable as scheme administrator) substitute—
c
a drawdown pension fund lump sum death benefit
Amendment of the Registered Pension Schemes (Authorised Surplus Payments) Regulations 2006
3
The Registered Pension Schemes (Authorised Surplus Payments) Regulations 20066 are amended as follows.
4
For regulation 2(4) (payments falling within section 37 or 76 of the Pensions Act 1995) substitute—
4
A payment made by an occupational pension scheme to a sponsoring employer solely in respect of the death of a member is an authorised surplus payment if—
a
it satisfies the conditions in paragraphs (2) or (3), and
b
the member was not connected to the sponsoring employer at the date of the member’s death.
5
For regulation 3(2) (payments falling outside section 37 or 76 of the Pensions Act 1995) substitute—
2
A payment made by an occupational pension scheme to a sponsoring employer solely in respect of the death of a member is an authorised surplus payment if—
a
it satisfies the conditions in paragraph (1), and
b
the member was not connected to the sponsoring employer at the date of the member’s death.
Amendment of the Registered Pension Schemes (Relevant Annuities) Regulations 20066
1
The Registered Pension Schemes (Relevant Annuities) Regulations 20067 are amended as follows.
2
In regulation 3 (definition of “annual amount”)—
a
in paragraph (1)(a) for “member’s” substitute “member’s or dependant’s”;
b
in paragraph (1)(b) for “75” (in both places) substitute “85”;
c
in paragraph (2), for the words starting with “For” in the first place it appears and ending at the end of sub-paragraph (a), substitute—
2
For the purposes of paragraph (1) the “relevant date” in relation to drawdown pension years beginning on or before the member’s or dependant’s 75th birthday is—
a
for the first drawdown pension year falling within a reference period—
i
the nominated date, as set out in paragraph 10(3)(a) or 24(3)(a) (as the case requires); or
ii
if there has been an additional fund designation made during that year, the date on which that designation was made;
d
in paragraph (2)(b) for “unsecured pension year” substitute “drawdown pension year”;
e
omit paragraphs (2)(c) and (d) and the remainder of paragraph (2);
f
after paragraph (2) insert—
3
For the purposes of paragraph (1) the “relevant date” in relation to drawdown pension years beginning after the member’s or dependant’s 75th birthday is—
a
the nominated date, as determined in accordance with paragraph 10A(3), (4) and (5) or 24A(3) (as the case requires); or
b
if there has been an additional fund designation during a drawdown pension year, the date on which that designation was made.
4
In paragraphs (2)(a)(i) and (b) and (3)(a), references to numbered paragraphs are to the paragraphs of Schedule 28 to the Act.
Amendment of the Registered Pension Schemes (Meaning of Pension Commencement Lump Sum) Regulations 20067
1
The Registered Pension Schemes (Meaning of Pension Commencement Lump Sum) Regulations 20068 are amended as follows.
2
In regulation 4 (circumstances in which the Regulations apply), for the words “even though” to “not met” substitute “even though the condition in paragraph 1(1)(c) of Schedule 29 to the Finance Act 2004 is not met”.
Amendment of the Registered Pension Schemes (Authorised Payments) Regulations 20098
1
The Registered Pension Schemes (Authorised Payments) Regulations 20099 are amended as follows.
2
In regulation 7 (meaning of “relevant accretion”), after paragraph (3) insert—
3A
For the purposes of determining whether all or part of the member’s lifetime allowance is available under paragraph (3)—
a
the fact that benefit crystallisation event 5 or benefit crystallisation event 5B has occurred in relation to the member is to be disregarded, and
b
anything which, but for paragraph 2 or 15A of Schedule 3210, would have been such a benefit crystallisation event is to be treated as if it were such an event.
3
Omit regulation 9 (payments to or in respect of members who were untraceable).
4
In regulation 10(3)(b) (payments to members receiving annuities) for “1% of the standard lifetime allowance” substitute “£18,000”.
5
In regulations 11(1)(a) (de minimis rule for pension schemes) and 12(1)(c) (payments by larger pensions schemes) omit “, but has not reached the age of 75”.
6
Omit regulation 16(1)(b) (payments of arrears of pension after death).
Amendment of the Registered Pension Schemes (Accounting and Assessment) Regulations 20059
1
The Registered Pension Schemes (Accounting and Assessment) Regulations 200511 are amended as follows.
2
In regulation 3 (the particulars required to be included in returns under section 254), in Table 1, after the entry relating to the charge under section 214 (lifetime allowance charge) insert—
Charge under section 22712 of the Act (annual allowance charge).
1. The title, name and national insurance number of each individual in relation to whom the scheme administrator becomes liable to an annual allowance charge under section 237B(7)13 of the Act.
2. The date on which the scheme administrator becomes liable to the annual allowance charge.
3. The amount of tax to which the scheme administrator became jointly liable in respect of each individual under section 237B(7) of the Act.
Amendment of the Registered Pension Schemes (Prescribed Manner of Determining Amount of Annuities) Regulations 2006
10
1
The Registered Pension Schemes (Prescribed Manner of Determining Amount of Annuities) Regulations 2006 (“the principal Regulations”)14 are amended as follows.
2
In regulation 2(4) (determining amount of member’s lifetime annuity)—
a
in condition 1, for “(a) to (d)” substitute “(a) to (c)”; and
b
in condition 2, for “5” substitute “3”.
11
Where the amount of—
a
a member’s lifetime annuity; or
b
a dependant’s annuity
has been determined in accordance with regulation 2 or 3 of the principal Regulations before the coming into force of these Regulations, the amendment made by regulation 10(2)(b) has effect from the date of the next review of the value of the sums and assets which are applied towards the provision of the annuity by the insurance company by whom the annuity is provided.
Amendment of the Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) Regulations 200612
1
The Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) Regulations 200615 are amended as follows.
2
Omit regulation 8 (modification of section 227).
3
In regulation 9 (modification of section 231)—
a
for paragraph (a) substitute—
a
in subsection (3) for “the consumer prices index” substitute “the relevant index”; and
b
in paragraph (b), for the inserted subsection (4) substitute—
4
In this section “the relevant index” means—
a
if there is an index of the movement of consumer prices maintained, or officially recognised, by the government of the country or territory in which the recognised overseas scheme is established, that index, or
b
if there is no such index, the consumer prices index.
4
In regulation 10 (modification of section 235)—
a
for paragraph (a) substitute—
a
in subsection (3) for “the consumer prices index” substitute “the relevant index”; and
b
in paragraph (b), for the inserted subsection (4) substitute—
4
In this section “the relevant index” means—
a
if there is an index of the movement of consumer prices maintained, or officially recognised, by the government of the country or territory in which the recognised overseas scheme is established, that index, or
b
if there is no such index, the consumer prices index.
(This note is not part of the Regulations)