Legislation – The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024

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Introduction

Part 1
Introductory

1 Citation and commencement

Part 2
Amendments of primary legislation

2 TMA 1970

3 Chapter 15A of Part 9 of ITEPA 2003

4 Chapter 1 of Part 11 of ITEPA 2003

5 Sections 239 and 255 of FA 2004

6 Schedule 29 to FA 2004

7 Schedule 32 to FA 2004

8 Schedule 36 to FA 2004

9 Pensions Act 2004

10 The Pensions (Northern Ireland) Order 2005

11 Pensions Act 2008

12 Pensions (No. 2) Act (Northern Ireland) 2008

13 Schedule 18 to FA 2011

14 Schedule 22 to FA 2013

15 Schedule 6 to FA 2014

16 Schedule 4 to FA 2016

17 Schedule 9 to FA 2024

Part 3
Amendments of subordinate legislation

18 The Occupational Pension Schemes (Assignment, Forfeiture, Bankruptcy etc.) Regulations (Northern Ireland) 1997

19 The Pension Protection Fund (Compensation) Regulations 2005

20 The Pension Protection Fund (Compensation) Regulations (Northern Ireland) 2005

21 The Registered Pension Schemes (Accounting and Assessment) Regulations 2005

22 The Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) Regulations 2006

23 The Pension Schemes (Information Requirements for Qualifying Overseas Pension Schemes, Qualifying Recognised Overseas Pension Schemes and Corresponding Relief) Regulations 2006

24 The Registered Pension Schemes (Provision of Information) Regulations 2006

25 The Taxation of Pension Schemes (Transitional Provisions) Order 2006

26 The Pension Protection Fund (Tax) Regulations 2006

27 The Financial Assistance Scheme (Tax) Regulations 2010

28 The Pension Protection Fund (Pension Compensation Sharing and Attachment on Divorce etc) Regulations 2011

29 The Pension Protection Fund (Pension Compensation Sharing and Attachment on Divorce etc.) Regulations (Northern Ireland) 2011

30 The Registered Pension Schemes (Notice of Joint Liability for the Annual Allowance Charge) Regulations 2011

31 The Pension (Non-Taxable Payments Following Death) (Real Time Information) Regulations 2021

Signature

Explanatory note

Part 3Amendments of subordinate legislation

The Registered Pension Schemes (Provision of Information) Regulations 200624.

(1)

The Registered Pension Schemes (Provision of Information) Regulations 200633are amended as follows.

(2)

In regulation 3 (provision of information by scheme administrator to HMRC)—

(a)

in paragraph (1), in the Table, in the entry for event 9 (transfers to QROPS)34, in the second column—

(i)

omit the “and” at the end of paragraph (i);

(ii)

at the end of paragraph (j) insert “; and”;

(iii)

after paragraph (j) insert—

“(k)

the amount of the member’s overseas transfer allowance that is available on the making of the transfer.”;

(b)

omit paragraph (5).

(3)

In regulation 8 (death: provision of information by scheme administrator to personal representatives)—

(a)

in paragraph (1), after “paragraphs” insert “(1A),”;

(b)

after paragraph (1) insert—

“(1A)

The information specified in this paragraph is—

(a)

the name of the scheme and the name and address of the scheme administrator of the scheme;

(b)

each relevant reference number (if any) in relation to the deceased member;

(c)

the name, address, date of birth and national insurance number of each individual (if any) to whom a relevant lump sum death benefit in respect of the deceased member has been, or will be, paid under the scheme.

The information is to be provided no later than the last day of the period of 2 months beginning with the day on which a request for it is received from the member’s personal representatives.”;

(c)

in paragraph (2)—

(i)

after “The information” insert “specified in this paragraph”;

(ii)

for “a relevant lump sum death benefit” substitute “each relevant lump sum death benefit paid”;

(d)

in paragraph (3), in the words before paragraph (a), after “The information” insert “specified in this paragraph”.

(4)

In regulation 11BA (information provided by members to scheme administrators: recognised transfers), in paragraph (2), after sub-paragraph (ad) insert—

“(ae)

a statement of the amount of the member’s overseas transfer allowance that is available on the making of the transfer;”.

(5)

In regulation 14ZC (information provided by scheme administrators on recognised transfers), after paragraph (4) insert—

“(5)

Paragraph (6) applies if—

(a)

in connection with a member of a registered pension scheme (“the transferring scheme”), there is a recognised transfer from the transferring scheme to another registered pension scheme (“the recipient scheme”), and

(b)

paragraph 12 of Schedule 36 (enhanced protection)35 applies in the case of the member.

(6)

The scheme administrator of the transferring scheme must provide the scheme administrator of the recipient scheme with a statement stating, for each arrangement under the transferring scheme relating to the member, the amount that would be “the permitted maximum” in relation to each of the following lump sums if a lump sum of that description were paid to or in respect of the member under the arrangement —

  • a pension commencement lump sum;

  • a serious ill-health lump sum;

  • an uncrystallised funds pension lump sum;

  • a defined benefits lump sum death benefit;

  • a pension protection lump sum death benefit;

  • an uncrystallised funds lump sum death benefit;

  • an annuity protection lump sum death benefit;

  • a drawdown pension fund lump sum death benefit;

  • a flexi-access drawdown lump sum death benefit.

(7)

In this regulation “the permitted maximum”, in relation to a lump sum of any description, means the permitted maximum relating to a lump sum of that description under Chapter 15A of Part 9 of ITEPA 2003, as that Chapter has effect in relation to the member as modified by paragraph 12A of Schedule 36.”.

(6)

In regulation 14A (annual allowance: annual provision of information by scheme administrator to member)—

(a)

in paragraph (9), in condition E, in the words before sub-paragraph (a), for “£4,000” substitute “£10,000”;

(b)

in paragraph (10), in sub-paragraph (d), for “£4,000” substitute “£10,000”.

(7)

In regulation 15 (information between scheme administrators on transfer)—

(a)

in paragraph (2), in the words before sub-paragraph (a), for “, at the date of the statement,” substitute “in each of the reportable periods”;

(b)

after that paragraph insert—

“(3)

In paragraph (2) “the reportable periods” means—

(a)

the period ending with 5th April 2024, and

(b)

the period beginning with 6th April 2024 and ending with the date of the statement.”.

33

S.I. 2006/567. In regulation 3, the entry for event 9 in the second column of the Table was amended by paragraph 24 of Schedule 4 to FA 2017 (c. 10), and by S.I. 2011/301, 2012/884 and 2013/1742. Regulation 8 was amended by paragraph 108 of Schedule 9 to FA 2024 and by S.I. 2008/720 and 2024/356. Regulation 11BA was inserted by S.I. 2012/884 and was amended by paragraph 24 of Schedule 4 to FA 2017, paragraph 113 of Schedule 9 to FA 2024 and by S.I. 2013/1742. Regulation 14ZC was inserted by paragraph 87 of Schedule 1 to the Taxation of Pensions Act 2014 (c. 30) and was amended by S.I. 2015/606. Regulation 14A was inserted by S.I. 2011/1797 and was amended by paragraph 88 of Schedule 1 to the Taxation of Pensions Act 2014, S.I. 2016/308, 2017/11, 2018/5 and by 2022/392. Regulation 15 was amended by paragraph 119 of Schedule 9 to FA 2024.

34

QROPS” (qualifying recognised overseas pension scheme) is defined in section 169(2) of FA 2004. By regulation 2(3) of the Registered Pension Schemes (Provision of Information) Regulations 2006, expressions defined or otherwise explained in section 280 of FA 2004 have the same meaning in those Regulations as they do in Part 4 of FA 2004.

35

Regulation 2(1) of the Registered Pension Schemes (Provision of Information) Regulations 2006 (S.I. 2006/567) provides that in those Regulations, a reference (without more) to a numbered Schedule is a reference to the Schedule in FA 2004 bearing the same number.