The Social Security Class 3A Contributions (Amendment) Regulations 2014

EXPLANATORY NOTE

(This note is not part of the Regulations)

Paragraph 3 of Schedule 15 to the Pensions Act 2014 (“the Pensions Act”) (c. 19) inserted sections 14A, 14B and 14C into the Social Security Contributions and Benefits Act 1992 (“the Act”) (c. 4). Paragraph 17 of Schedule 15 to the Pensions Act inserted sections 14A, 14B and 14C into the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (“the Northern Ireland Act”) (c. 7). Section 14A of both the Act and the Northern Ireland Act gives an eligible person the right to pay a Class 3A national insurance contribution to obtain a unit of additional pension.

Regulation 1 provides that these Regulations, with the exception of regulation 3 (which applies only to Northern Ireland), come into force on 12th October 2015 in Great Britain. With the exception of regulation 2 (which only applies to Great Britain) these regulations come into force in Northern Ireland on the same day as paragraph 17 of Schedule 15 to the Pensions Act is brought into force for all purposes by an appointed day order.

Regulation 2 amends section 14A(1) of the Act and, as a consequence of that amendment, the option to pay a Class 3A contribution will be removed after 5th April 2017.

Regulation 3 makes an identical amendment to section 14A(1) of the Northern Ireland Act.

Regulation 4 amends the Social Security (Contributions) Regulations 2001 (S.I. 2001/1004) to specify the circumstances in which a Class 3A contribution may be repaid.

A Tax Information and Impact Note will be published on the HMRC website at http://www.hmrc.gov.uk/thelibrary/tiins.htm.