The Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) Regulations 2023

Judicial schemes and local government schemes: administrative provisions relating to scheme pays U.K.

15.—(1) Paragraph (2) applies where—

(a) an individual’s pension scheme input amount in relation to a judicial 2015 scheme for a tax year is determined by reference to the individual’s remediable service rights under the scheme,

(b) the individual has become liable for the annual allowance charge for the tax year (whether or not the liability has subsequently been discharged),

(c) the scheme administrator of the judicial 2015 scheme—

(i) has, as a result of the receipt of a scheme pays notice, at any time become jointly and severally liable for any or all of the annual allowance charge (whether or not the liability has subsequently been discharged), or

(ii) has, in response to a request from the individual, at any time agreed to pay an amount in respect of the annual allowance charge (whether or not the amount has subsequently been paid),

(d) an amount has been paid by the scheme administrator in respect of the individual’s liability for the annual allowance charge for the tax year, and

(e) the amount of the individual’s liability for the annual allowance charge has reduced, as a result of a relevant rectification provision.

(2) The scheme administrator—

(a) is not required to amend any accounting-for-tax return previously made in respect of the liability;

(b) may reclaim from HMRC, only on the making of an application, the lower of—

(i) the amount by which the individual’s liability reduced as a result of the relevant rectification provision, and

(ii) the amount paid by the scheme administrator in respect of the individual’s liability for the annual allowance charge.

(3) Paragraph (4) applies where—

(a) an individual’s pension scheme input amount in relation to a local government new scheme for a tax year is determined by reference to the individual’s remediable service rights under the scheme,

(b) the individual has become liable for the annual allowance charge for the tax year (whether or not the liability has subsequently been discharged),

(c) the scheme administrator of the local government new scheme—

(i) has, as a result of the receipt of a scheme pays notice, at any time become jointly and severally liable for any or all of the annual allowance charge (whether or not the liability has subsequently been discharged), or

(ii) has, in response to a request from the individual, at any time agreed to pay an amount in respect of the annual allowance charge (whether or not the amount has subsequently been paid),

(d) an amount has been paid by the scheme administrator in respect of the individual’s liability for the annual allowance charge for the tax year, and

(e) the amount of the individual’s liability for the annual allowance charge has reduced, as a result of the operation of regulation 14(1).

(4) The scheme administrator—

(a) is not required to amend any accounting-for-tax return previously made in respect of the liability;

(b) may reclaim from HMRC, only on the making of an application, the lower of—

(i) the amount by which the individual’s liability reduced as a result of the operation of regulation 14(1), and

(ii) the amount paid by the scheme administrator in respect of the individual’s liability for the annual allowance charge.

[F1 (4A) An application under paragraph (2)(b) or (4)(b) must be made on or before 1st April 2027.]

(5) An application under paragraph (2)(b) or (4)(b) must contain the following information—

(a) must be accompanied by—

(i) a declaration that the application is made by the scheme administrator;

(ii) a declaration as to the accuracy of the information contained in the application;

(iii) a declaration that the applicant understands the consequences of providing false information; and

(b) must contain the following information—

(i) the pension scheme name and tax reference number;

(ii) the scheme administrator identity reference provided by HMRC;

(iii) the name and national insurance number of the individual scheme member;

(iv) the amount of the charge paid, the date on which, and the charge reference number under which, it was paid;

(v) the pension scheme tax reference number of the scheme under which the scheme administrator reported and paid the amount of the charge to HMRC;

(vi) the tax year and quarter covered by the accounting-for-tax return on which the charge was reported to HMRC;

(vii) the revised amount of the tax charge;

(viii) the amount of tax being reclaimed;

(ix) if a repayment is claimed, the amount and the details of the bank account to which repayment is to be made;

(x) if a reallocation is claimed, the amount and the charge reference to which it is to be allocated.

Textual Amendments

F1 Reg. 15(4A) inserted (14.9.2023) by The Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) (No. 2) Regulations 2023 (S.I. 2023/912), regs. 1(2), 27 (with reg. 1(3))

Commencement Information

I1 Reg. 15 in force at 6.4.2023, see reg. 1(2)