Finance Act 2004

Chapter 2U.K.Registration of pension schemes

RegistrationU.K.

153Registration of pension schemesU.K.

(1)An application may be made to the Inland Revenue for a pension scheme to be registered.

(2)The application—

(a)must contain any information which is reasonably required by the Inland Revenue in any form specified by the Board of Inland Revenue, and

(b)must be accompanied by a declaration that the application is made by the scheme administrator (see section 270) and any other declarations by the scheme administrator which are reasonably required by the Inland Revenue.

(3)The declarations which the Inland Revenue may require to accompany an application for the registration of a pension scheme include, in particular, a declaration that the instruments or agreements by which it is constituted do not entitle any person to unauthorised payments (see section 160(5)).

(4)[F1Following] receipt of an application for a pension scheme to be registered the Inland Revenue must decide whether or not to register the pension scheme.

(5)The Inland Revenue’s decision must be to register the pension scheme unless it appears that—

[F2(a)any information falling within subsection (5A) is inaccurate in a material respect,

(b)any document falling within subsection (5B) contains a material inaccuracy,

(c)any declaration accompanying the application is false,

(d)the scheme administrator has failed to comply with an information notice under section 153A given in connection with the application (including any declaration accompanying it),

(e)the scheme administrator has deliberately obstructed an officer of Revenue and Customs in the course of an inspection under section 153B carried out in connection with the application (including any declaration accompanying it) where the inspection has been approved by the tribunal,

(f)the pension scheme has not been established, or is not being maintained, wholly or mainly for the purpose of making payments falling within section 164(1)(a) or (b) (authorised payments of pensions and lump sums), or

(g)the person who is, or any of the persons who are, the scheme administrator is not a fit and proper person to be, as the case may be—

(i)the scheme administrator, or

(ii)one of the persons who are the scheme administrator] [F3, or

(h)the pension scheme is an occupational pension scheme, and a sponsoring employer in relation to the scheme is a body corporate that has been dormant during a continuous period of one month that falls within the period of one year ending with the day on which the decision is made, or

(i)the pension scheme is an unauthorised Master Trust scheme.]

[F4(5A)The information falling within this subsection is any information—

(a)contained in the application, or

(b)otherwise provided to an officer of Revenue and Customs by the scheme administrator (whether under section 153A or otherwise) in connection with the application (including any declaration accompanying it).

(5B)The documents falling within this subsection are any documents produced to an officer of Revenue and Customs by the scheme administrator (whether under section 153A or otherwise) in connection with the application (including any declaration accompanying it).

(5C)The reference in subsection (5)(d) to the scheme administrator having failed to comply with an information notice under section 153A includes a case where the scheme administrator has concealed, destroyed or otherwise disposed of, or has arranged for the concealment, destruction or disposal of, a document in breach of paragraph 42 or 43 of Schedule 36 to the Finance Act 2008 as applied by section 153A(3).]

(6)The Inland Revenue must notify the scheme administrator of the decision on the application.

(7)Unless the Inland Revenue’s decision is not to register the pension scheme, the notification must state the day on and after which the pension scheme will be a registered pension scheme.

(8)An annuity contract [F5made with an insurance company]—

(a)by means of which benefits under a registered pension scheme have been secured, but

(b)which does not provide for the immediate payment of benefits,

is to be treated as having become a registered pension scheme on the day on which it is made.

[F6(8A)Where an order has been made under section 19(4) or 21(2)(a) of the Pensions Act 2004 or Article 15(4) or 17(2)(a) of the Pensions (Northern Ireland) Order 2005 (restitution by order of court or Pensions Regulator) that property or money be transferred, or a sum be paid, towards an annuity contract made with an insurance company, the annuity contract is to be treated as having become a registered pension scheme on the day on which it is made.]

(9)Schedule 36 contains (in Part 1) provisions treating certain pension schemes in existence immediately before 6th April 2006 as registered pension schemes (and related provisions).

[F7153APower to require information or documents in relation to applications for registrationU.K.

(1)This section applies where an application for a pension scheme to be registered is made.

(2)An officer of Revenue and Customs may by notice (an “information notice”) require the scheme administrator or any other person—

(a)to provide the officer with any information, or

(b)to produce a document to the officer,

if the officer reasonably requires the information or document in connection with the application (including any declaration accompanying it).

(3)Paragraphs 6(2), 7, 8, 15, 16, 18 to 20, 23 to 27, 42 and 43 of Schedule 36 to the Finance Act 2008 (information notices etc) apply in relation to information notices under this section as they apply in relation to information notices under that Schedule.

(4)Where an information notice under this section is given to a person other than the scheme administrator, an officer of Revenue and Customs must give a copy of the notice to the scheme administrator.

(5)A person, other than the scheme administrator, who is given an information notice under this section may appeal against the notice or any requirement in the notice.

(6)Paragraph 32 of Schedule 36 to the Finance Act 2008 (procedures for appeals against information notices) applies for the purposes of an appeal under subsection (5) as it applies for the purposes of an appeal under Part 5 of that Schedule.

153BPower to inspect documents in relation to applications for registrationU.K.

(1)This section applies where an application for a pension scheme to be registered is made.

(2)An officer of Revenue and Customs may—

(a)enter any business premises of the scheme administrator or any other person, and

(b)inspect documents that are on the premises,

if the officer reasonably requires to inspect the documents in connection with the application (including any declaration accompanying it).

(3)In subsection (2)(a) “business premises” has the meaning given by paragraph 10(3) of Schedule 36 to the Finance Act 2008 (power to inspect business premises etc).

(4)Paragraphs 10(2), 12, 15 and 16 of Schedule 36 to the Finance Act 2008 apply in relation to the power of inspection conferred by this section as they apply in relation to the power of inspection conferred by paragraph 10 of that Schedule.

(5)An officer of Revenue and Customs may not inspect a document under this section if or to the extent that, by virtue of a provision of Part 4 of Schedule 36 to the Finance Act 2008 (restrictions on powers) applied by section 153A(3), an information notice under section 153A given at the time of the inspection to the occupier of the premises could not require the occupier to produce the document.

(6)An officer of Revenue and Customs may ask the tribunal to approve an inspection under this section.

(7)Paragraph 13(1A), (2) and (3) of Schedule 36 to the Finance Act 2008 (approval of tribunal for inspections) applies in relation to an application under subsection (6) as it applies in relation to an application under paragraph 13 of that Schedule in relation to an inspection under paragraph 10 of that Schedule.

153CPenalties for failure to comply with information notices etcU.K.

(1)This section applies where a person other than the scheme administrator—

(a)fails to comply with an information notice under section 153A, or

(b)deliberately obstructs an officer of Revenue and Customs in the course of an inspection under section 153B that has been approved by the tribunal.

(2)The reference in subsection (1)(a) to a person who fails to comply with an information notice includes a person who conceals, destroys or otherwise disposes of, or arranges for the concealment, destruction or disposal of, a document in breach of paragraph 42 or 43 of Schedule 36 to the Finance Act 2008 as applied by section 153A(3).

(3)Paragraphs 39(2), 40 and 44 to 49 of Schedule 36 to the Finance Act 2008 (penalties for failure to comply with information notice etc) apply in relation to the failure or obstruction as they apply in relation to a failure or obstruction mentioned in paragraph 39(1) of that Schedule.

153DPenalties for inaccurate information in applicationsU.K.

(1)This section applies where—

(a)an application under section 153 contains information which is inaccurate,

(b)the inaccuracy is material, and

(c)condition A, B or C is met.

(2)Condition A is that the inaccuracy is careless or deliberate.

(3)An inaccuracy is careless if it is due to a failure by the scheme administrator to take reasonable care.

(4)Condition B is that the scheme administrator knows of the inaccuracy at the time the application is made but does not inform an officer of Revenue and Customs at that time.

(5)Condition C is that the scheme administrator—

(a)discovers the inaccuracy some time later, and

(b)fails to take reasonable steps to inform an officer of Revenue and Customs.

(6)The scheme administrator is liable to a penalty not exceeding the maximum penalty for which the scheme administrator could have been liable under paragraph 40A of Schedule 36 to the Finance Act 2008 (penalties for inaccurate information and documents) had that paragraph applied in relation to the inaccuracy.

(7)Where the information contains more than one material inaccuracy, a penalty is payable for each inaccuracy.

(8)Paragraphs 46 to 49 of Schedule 36 to the Finance Act 2008 (assessment of penalties etc) apply in relation to a penalty under this section as they apply in relation to a penalty under paragraph 40A of that Schedule.

153EPenalties for inaccurate information or documents provided under information noticeU.K.

(1)This section applies where—

(a)in complying with an information notice under section 153A, a person provides inaccurate information or produces a document that contains an inaccuracy, and

(b)the inaccuracy is material.

(2)Paragraphs 40A and 46 to 49 of Schedule 36 to the Finance Act 2008 (penalties for inaccurate information and documents) apply in relation to the inaccuracy as they apply in relation to an inaccuracy connected with an information notice under that Schedule.

153FPenalties for false declarationsU.K.

(1)This section applies where—

(a)a declaration accompanying an application under section 153 is false, and

(b)at least one of conditions A to C in section 153D is met (reading references to an inaccuracy as references to a falsehood and references to the scheme administrator as references to the person who made the declaration).

(2)The person who made the declaration is liable to a penalty not exceeding the maximum penalty for which the person could have been liable under paragraph 40A of Schedule 36 to the Finance Act 2008 (penalties for inaccurate information and documents) had that paragraph applied in relation to the falsehood.

(3)Where the declaration contains more than one falsehood, a penalty is payable in relation to each falsehood.

(4)Paragraphs 46 to 49 of Schedule 36 to the Finance Act 2008 (assessment of penalties etc) apply in relation to a penalty under this section as they apply in relation to a penalty under paragraph 40A of that Schedule.]

154Persons by whom registered pension scheme may be establishedU.K.

[F8(1)An application to register a pension scheme may be made only if the pension scheme—

(a)is an occupational pension scheme, or

(b)has been established by a person with permission under FISMA 2000 to establish in the United Kingdom a personal pension scheme or a stakeholder pension scheme.]

(2)But subsection (1) does not apply to a public service pension scheme.

[F9(2A)Subsection (1) is to be construed in accordance with section 22 of FISMA 2000, any relevant order under that section and Schedule 2 to that Act.]

F10(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4)The Treasury may by order amend this section F11....

F12155Persons by whom scheme may be established: supplementaryU.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

156Appeal against decision not to registerU.K.

(1)This section applies where, on an application for a pension scheme to be registered, the Inland Revenue’s decision is not to register the pension scheme.

(2)The scheme administrator may appeal against the decision.

F13(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F13(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5)An appeal under this section against a decision must be brought within the period of 30 days beginning with the day on which the scheme administrator was notified of the decision.

(6)[F14On an appeal under this section that is notified to the tribunal, the tribunal] must consider whether the pension scheme ought to have been registered by the Inland Revenue.

(7)If [F15the tribunal decides] that the pension scheme ought not to have been registered by the Inland Revenue, [F16the tribunal must] dismiss the appeal.

(8)If [F17the tribunal decides] that the pension scheme ought to have been registered by the Inland Revenue, the pension scheme is to be treated as having been registered on such date as the [F18tribunal determines] (but subject to any further appeal F19...).

[F20156ACases where application for registration not decided within 6 monthsU.K.

(1)This section applies where—

(a)an application for a pension scheme to be registered is made, but

(b)the scheme administrator is not notified under section 153(6) within the period of 6 months after the day on which the application is made.

(2)The scheme administrator may appeal to the tribunal as if, at the end of that period of 6 months, the scheme administrator had been notified under section 153(6) of a decision not to register the scheme; and section 156(5) to (8) applies accordingly.]

De-registrationU.K.

157De-registrationU.K.

(1)The Inland Revenue may withdraw the registration of a pension scheme.

(2)If the Inland Revenue withdraws the registration of a pension scheme the Inland Revenue must notify the scheme administrator.

(3)If there is no-one who is the scheme administrator, the Inland Revenue must instead notify any person or persons—

(a)who has or have responsibility for the discharge of any obligation relating to the pension scheme under section 271(4) (continuation of liability where no scheme administrator), section 272 (trustees etc.) or section 273 (members), and

(b)whom it is reasonably practicable for the Inland Revenue to identify.

(4)The notification must state the date on and after which the pension scheme will not be a registered pension scheme.

158Grounds for de-registrationU.K.

(1)The registration of a pension scheme may be withdrawn under section 157 only if it appears to the Inland Revenue—

[F21(za)that the pension scheme has not been established, or is not being maintained, wholly or mainly for the purpose of making payments falling within section 164(1)(a) or (b) (authorised payments of pensions and lump sums),]

[F22(zb)that the person who is, or any of the persons who are, the scheme administrator is not a fit and proper person to be, as the case may be—

(i)the scheme administrator, or

(ii)one of the persons who are the scheme administrator,]

(a)that the amount of the scheme chargeable payments (see section 241) made by the pension scheme during any period of 12 months exceeds the de-registration threshold,

(b)that the scheme administrator fails to pay a substantial amount of tax (or interest on tax) due from the scheme administrator by virtue of this Part,

(c)that the scheme administrator fails to provide information required to be provided to the Inland Revenue by virtue of this Part [F23or Part 1 of Schedule 36 to the Finance Act 2008] and the failure is significant,

(d)that any information contained in the application to register the pension scheme or otherwise provided to the Inland Revenue is [F24inaccurate] in a material particular,

[F25(da)that the scheme administrator fails to produce any document required to be produced to an officer of Revenue and Customs by virtue of this Part or Part 1 of Schedule 36 to the Finance Act 2008,

(db)that any document produced to an officer of Revenue and Customs by the scheme administrator contains a material inaccuracy in relation to which at least one of conditions A to C in subsections (7) to (10) is met,]

[F26(e)that any declaration accompanying the application to register the pension scheme, or otherwise made to an officer of Revenue and Customs in connection with the pension scheme, is false in a material particular,

(ea)that the scheme administrator has deliberately obstructed an officer of Revenue and Customs in the course of an inspection under [F27section 159B or] Part 2 of Schedule 36 to the Finance Act 2008 that has been approved by the tribunal, or]

(f)that there is no scheme administrator[F28, or

(g)that the pension scheme is an occupational pension scheme, and a sponsoring employer in relation to the scheme is a body corporate that has been dormant during a continuous period of one month that falls within the period of one year ending with the day on which the decision to withdraw registration is made, or

(h)that the scheme is an unauthorised Master Trust scheme.]

(2)The amount of the scheme chargeable payments made by a pension scheme during any period of 12 months exceeds the de-registration threshold if the scheme chargeable payments percentage is 25% or more.

(3)The scheme chargeable payments percentage is—

(a)if only one scheme chargeable payment is made during the period of 12 months, the percentage of the pension fund used up on the occasion of that scheme chargeable payment, and

(b)if two or more scheme chargeable payments are made during the period of 12 months, the aggregate of the percentages of the pension fund used up on the occasion of each of those scheme chargeable payments.

(4)The percentage of the pension fund used up on the occasion of a scheme chargeable payment is—

(5)A failure by a scheme administrator to provide information required to be provided to the Inland Revenue by or under this Part [F29or Part 1 of Schedule 36 to the Finance Act 2008] is significant if—

(a)the amount of information which the scheme administrator fails to provide is substantial, or

(b)the failure to provide the information is likely to result in serious prejudice to the assessment or collection of tax.

[F30(6)Subsections (7) to (10) apply for the purposes of subsection (1)(db).

(7)Condition A is that the inaccuracy is careless or deliberate.

(8)An inaccuracy is careless if it is due to a failure by the scheme administrator to take reasonable care.

(9)Condition B is that the scheme administrator knows of the inaccuracy at the time the document is produced to an officer of Revenue and Customs but does not inform such an officer at that time.

(10)Condition C is that the scheme administrator—

(a)discovers the inaccuracy some time later, and

(b)fails to take reasonable steps to inform an officer of Revenue and Customs.]

159Appeal against decision to de-registerU.K.

(1)This section applies where the Inland Revenue decides to withdraw the registration of a pension scheme under section 157.

(2)The scheme administrator, or any person notified under that section of the withdrawal of registration, may appeal against the decision.

F31(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F31(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5)An appeal under this section against a decision must be brought within the period of 30 days beginning with the day on which the appellant was notified of the decision.

(6)[F32On an appeal that is notified to the tribunal, the tribunal] must consider whether the registration of the pension scheme ought to have been withdrawn.

(7)If [F33the tribunal decides] that the registration of the pension scheme ought to have been withdrawn, [F34the tribunal must] dismiss the appeal.

(8)If [F35the tribunal decides] that the registration of the pension scheme ought not to have been withdrawn, the pension scheme is to be treated as having remained a registered pension scheme (but subject to any further appeal F36...).

[F37159APower to require information or documents for purpose of considering if scheme administrator is fit and properU.K.

(1)An officer of Revenue and Customs may by notice (an “information notice”) require the scheme administrator of a registered pension scheme or any other person—

(a)to provide the officer with any information, or

(b)to produce a document to the officer,

if the officer reasonably requires the information or document for the purpose of considering whether the person who is, or any of the persons who are, the scheme administrator is a fit and proper person to be the scheme administrator or one of those persons (as the case may be).

(2)Paragraphs 6(2), 7, 8, 15, 16, 18 to 20, 23 to 27, 42 and 43 of Schedule 36 to the Finance Act 2008 (information notices etc) apply in relation to information notices under this section as they apply in relation to information notices under that Schedule.

(3)Where an information notice under this section is given to a person other than the scheme administrator, an officer of Revenue and Customs must give a copy of the notice to the scheme administrator.

(4)A person who is given an information notice under this section may appeal against the notice or any requirement in the notice.

(5)Paragraph 32 of Schedule 36 to the Finance Act 2008 (procedures for appeals against information notices) applies for the purposes of an appeal under subsection (4) as it applies for the purposes of an appeal under Part 5 of that Schedule.

159BPower to inspect documents for purpose of considering if scheme administrator is fit and properU.K.

(1)An officer of Revenue and Customs may—

(a)enter any business premises of the scheme administrator of a registered pension scheme or of any other person, and

(b)inspect documents that are on the premises,

if the officer reasonably requires to inspect the documents for the purpose of considering whether the person who is, or any of the persons who are, the scheme administrator is a fit and proper person to be the scheme administrator or one of those persons (as the case may be).

(2)In subsection (1)(a) “business premises” has the meaning given by paragraph 10(3) of Schedule 36 to the Finance Act 2008 (power to inspect business premises etc).

(3)Paragraphs 10(2), 12, 15 and 16 of Schedule 36 to the Finance Act 2008 apply in relation to the power of inspection conferred by this section as they apply in relation to the power of inspection conferred by paragraph 10 of that Schedule.

(4)An officer of Revenue and Customs may not inspect a document under this section if or to the extent that, by virtue of a provision of Part 4 of Schedule 36 to the Finance Act 2008 (restrictions on powers) applied by section 159A(2), an information notice under section 159A given at the time of the inspection to the occupier of the premises could not require the occupier to produce the document.

(5)An officer of Revenue and Customs may ask the tribunal to approve an inspection under this section.

(6)Paragraph 13(1A), (2) and (3) of Schedule 36 to the Finance Act 2008 (approval of tribunal for inspections) applies in relation to an application under subsection (5) as it applies in relation to an application under paragraph 13 of that Schedule in relation to an inspection under paragraph 10 of that Schedule.

159CPenalties for failure to comply with information notices etcU.K.

(1)This section applies where a person—

(a)fails to comply with an information notice under section 159A, or

(b)deliberately obstructs an officer of Revenue and Customs in the course of an inspection under section 159B that has been approved by the tribunal.

(2)The reference in subsection (1)(a) to a person who fails to comply with an information notice includes a person who conceals, destroys or otherwise disposes of, or arranges for the concealment, destruction or disposal of, a document in breach of paragraph 42 or 43 of Schedule 36 to the Finance Act 2008 as applied by section 159A(2).

(3)Paragraphs 39(2), 40 and 44 to 49 of Schedule 36 to the Finance Act 2008 (penalties for failure to comply with information notice etc) apply in relation to the failure or obstruction as they apply in relation to a failure or obstruction mentioned in paragraph 39(1) of that Schedule.

159DPenalties for inaccurate information or documents provided under information noticeU.K.

(1)This section applies where—

(a)in complying with an information notice under section 159A, a person provides inaccurate information or produces a document that contains an inaccuracy, and

(b)the inaccuracy is material.

(2)Paragraphs 40A and 46 to 49 of Schedule 36 to the Finance Act 2008 (penalties for inaccurate information and documents) apply in relation to the inaccuracy as they apply in relation to an inaccuracy connected with an information notice under that Schedule.]