Finance Act 2004

Chapter 7U.K.Compliance

InformationU.K.

250Registered pension scheme returnU.K.

(1)The Inland Revenue may, in relation to any tax year, by notice require the scheme administrator of a registered pension scheme—

(a)to make and deliver to the Inland Revenue a return containing any information reasonably required by the notice, and

(b)to deliver with the return any accounts, statements or other documents relating to information contained in the return which may reasonably be required by the notice.

(2)The information that may be required to be included in the return is any information relating to—

(a)contributions made under the pension scheme,

(b)transfers of sums or assets held for the purposes of, or representing accrued rights under, another pension scheme so as to become held for the purposes of, or to represent rights under, the pension scheme,

(c)income and gains derived from investments or deposits held for the purposes of the pension scheme,

(d)other receipts of the pension scheme,

(e)the sums and other assets held for the purposes of the pension scheme,

(f)the liabilities of the pension scheme,

(g)the provision of benefits by the pension scheme,

(h)transfers of sums or assets held for the purposes of, or representing accrued rights under, the pension scheme so as to become held for the purposes of, or to represent rights under, another pension scheme,

(i)other expenditure of the pension scheme,

(j)the membership of the pension scheme, or

(k)any other matter relating to the administration of the pension scheme.

(3)The information that may be required to be included in the return may be limited to information concerning any particular arrangement or arrangements under the pension scheme.

(4)The notice must specify the period to be covered by the return.

(5)The period may be—

(a)the whole or any specified part of the tax year, or

(b)if audited accounts of the pension scheme have been prepared for any period or periods ending in the tax year, the period or periods covered by the accounts.

(6)“Audited accounts” means accounts audited by a person of a description specified in regulations made by the Board of Inland Revenue.

(7)A return relating to the whole or part of, or to a period or periods ending in, a tax year must be delivered—

(a)where the notice requiring the return is given after the 31st October in the next tax year, before the end of the period of three months beginning with the day on which the notice is given, and

(b)otherwise, not later than the 31st January in the next tax year (but subject as follows).

(8)If, in a case within paragraph (b) of subsection (7), the winding-up of the pension scheme has been completed before 31st October in the next tax year, the return must be delivered before the end of the period of three months beginning with the day on which the winding-up is completed.

(9)But subsection (8) does not apply if the end of that period is before the end of the period of three months beginning with the day on which the notice is given; and in that case the return must be delivered before the end of that period.

251Information: general requirementsU.K.

(1)The Board of Inland Revenue may by regulations make provision requiring persons of a prescribed description—

(a)to provide to the Inland Revenue, in a form specified by the Board of Inland Revenue, information of a prescribed description relating to any of the matters mentioned in subsection (2), and

(b)to preserve for a prescribed period any documents relating to such information.

(2)Those matters are—

(a)any matter relating to a registered pension scheme,

(b)any matter relating to a pension scheme which has ceased to be a registered pension scheme,

(c)any matter relating to a pension scheme in relation to which an application for registration has been made,

(d)any matter relating to an annuity purchased with sums or assets held for the purposes of a registered pension scheme,

(e)the coming into operation of an employer-financed retirement benefits scheme, and

(f)the provision of relevant benefits under an employer-financed retirement benefits scheme.

(3)In subsection (2)—

• “employer-financed retirement benefits scheme”, and

• “relevant benefits”,

• have the same meaning as in Chapter 2 of Part 6 of ITEPA 2003 (see sections 393A and 393B of that Act).

(4)The Board of Inland Revenue may by regulations make provision—

(a)requiring scheme administrators of registered pension schemes or other persons of a prescribed description to provide information of a prescribed description to persons of such of the descriptions mentioned in subsection (5) as are prescribed [F1or to the scheme administrators of other registered pension schemes], or

(b)requiring persons of such of the descriptions specified in subsection (5) as are prescribed to provide information of a prescribed description to the scheme administrators of registered pension schemes.

(5)Those persons are—

(a)members of a registered pension scheme,

[F2(aa)employers of members of a registered pension scheme,]

(b)persons who have ceased to be members of a registered pension scheme,

(c)persons to whom benefits under a registered pension scheme are being, or have been, provided,

(d)the personal representatives of any person within paragraphs (a) to (c), and

(e)insurance companies who pay annuities purchased with sums or assets held for the purposes of registered pension schemes.

(6)“Prescribed”, in relation to regulations, means prescribed by the regulations.

F3252Notices requiring documents or particularsU.K.

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F4253Appeal against noticesU.K.

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Accounting and assessmentU.K.

254Accounting for tax by scheme administratorsU.K.

(1)A scheme administrator of a registered pension scheme must make returns to the Inland Revenue of the income tax to which the scheme administrator is liable under this Part.

(2)A return is to be made for each period of three months ending with 31st March, 30th June, 30th September or 31st December if tax has been charged on the scheme administrator by virtue of this Part in that period.

(3)A return for any period must be made before the end of the period of 45 days beginning with the day immediately following the end of that period.

(4)A return must—

(a)show the income tax to which the scheme administrator is liable, and

(b)include such particulars of the events or other circumstances giving rise to the liability (including particulars as to the persons to whom the events or other circumstances relate) as are required to be included in returns under this section by regulations made by the Board of Inland Revenue.

(5)The income tax required to be shown in a return is due at the time by which the return is to be made and is payable without the making of an assessment.

(6)The Board of Inland Revenue may by regulations make provision for and in connection with—

(a)the charging of interest on tax due under this section which is not paid on or before the due date,

(b)the making of amended returns by scheme administrators in the event of error in a return under this section,

(c)the making of assessments, repayments or adjustments in cases where the correct tax due under this section has not been paid on or before the due date, and

(d)otherwise for supplementing this section.

(7)The regulations may, in particular—

(a)modify the operation of any provision of the Tax Acts, or

(b)provide for the application of any provision of the Tax Acts (with or without modifications).

(8)References in this section to the income tax to which a scheme administrator is liable under this Part do not include any to which the scheme administrator is liable under section 239 (scheme sanction charge).

(9)Where the registration of a registered pension scheme has been withdrawn, this section has effect as if references to the scheme administrator were to the person who was, or each of the persons who were, the scheme administrator immediately before the registration was withdrawn.

255Assessments under this PartU.K.

(1)The Board of Inland Revenue may by regulations make provision for and in connection with the making of assessments in respect of—

(a)the unauthorised payments charge,

(b)the unauthorised payments surcharge,

(c)liability to the lifetime allowance charge under section 217(2) (person to whom lump sum death benefit paid),

(d)the scheme sanction charge,

(e)liability under section 272 (trustees etc. liable as scheme administrator),

(f)liability under section 273 (member liable as scheme administrator), and

(g)liability under section 394 of ITEPA 2003 (benefit under employer-financed retirement benefits scheme: charge on responsible person).

(2)The provision that may be made by the regulations includes (in particular) provision for the charging of interest on tax due under such assessments which remains unpaid.

(3)The regulations may, in particular—

(a)modify the operation of any provision of the Tax Acts, or

(b)provide for the application of any provision of the Tax Acts (with or without modification).

[F5PaymentU.K.

255AElectronic paymentU.K.

(1)The Board of Inland Revenue may give directions requiring specified persons to use electronic means for the making of specified payments required to be made under or by virtue of this Part.

(2)Directions under this section may make provision—

(a)as to conditions that must be complied with in connection with the use of electronic means for the making of any payment,

(b)for treating a payment as not having been made unless conditions imposed by the directions are satisfied, and

(c)for determining the time when a payment in accordance with directions under this section is to be taken to be made.

(3)Directions under this section may also make provision (which may include provision for the application of conclusive or other presumptions) as to the manner of proving for any purpose—

(a)whether any use of electronic means for making a payment is to be taken as having resulted in the payment being made,

(b)the time of the making of any payment for the making of which electronic means have been used, and

(c)any other matter for which provision may be made by directions under this section.

(4)Directions under this section—

(a)may be specific or general, and

(b)may provide that the conditions of any authorisation or requirement imposed by the directions are to be taken to be satisfied only where the Inland Revenue is satisfied as to specified matters.

(5)Directions under this section may—

(a)suspend for any period during which the use of electronic means for the making of payments is impossible or impractical, any requirements imposed by the directions relating to the use of such means,

(b)substitute alternative requirements for the suspended ones, and

(c)make any provision that is necessary in consequence of the imposition of the substituted requirements.

(6)Directions under this section may—

(a)make different provision for different cases,

(b)make such incidental, supplementary, consequential and transitional provision in connection with any provision contained in such directions as the Board of Inland Revenue thinks fit.

(7)In this section—

• “the Inland Revenue” includes any person who for the purposes of the electronic means of payment is acting under the authority of the Board of Inland Revenue, and

• “specified” means specified in a direction under this section.

255BPayments to be cleared paymentsU.K.

(1)A payment made to the Board of Inland Revenue or the Inland Revenue under or by virtue of this Part (otherwise than in cash) is to be treated as not having been made until the earliest date on or before which all the transactions that need to be completed before the whole amount of the payment becomes available to the Board are capable of being completed.

(2)In this section “the Inland Revenue” includes any person who is acting under the authority of the Board of Inland Revenue.]

Registration regulationsU.K.

256Enhanced lifetime allowance regulationsU.K.

(1)This section applies to regulations made by the Board of Inland Revenue under—

(a)section 220(5) (lifetime allowance enhancement: registration of pension credits),

(b)section 221(6) (lifetime allowance enhancement: individuals who are not always relevant UK individuals),

(c)section 224(9) (lifetime allowance enhancement: transfers from recognised overseas pension scheme),

(d)paragraph 7(1)(b) [F6or 11A(1)(c)] of Schedule 36 (lifetime allowance enhancement: primary protection),

(e)paragraph 12(1) [F7or 15A(1)(b)] of that Schedule (lifetime allowance: enhanced protection), and

(f)paragraph 18(6) of that Schedule (lifetime allowance enhancement: pre-commencement pension credits).

(2)The regulations to which this section applies are referred to in this Part as “enhanced lifetime allowance regulations”.

(3)Enhanced lifetime allowance regulations may include any provision that appears appropriate for securing that the correct tax is charged—

(a)by way of the lifetime allowance charge in respect of amounts crystallised by benefit crystallisation events, and

(b)in respect of the payment of lump sums by registered pension schemes.

(4)Enhanced lifetime allowance regulations may, for that purpose, in particular contain provision—

(a)requiring any person to produce or make available documents, produce certificates or provide information, and

(b)for the review from time to time of any matter registered in accordance with the regulations.

PenaltiesU.K.

257Registered pension scheme returnU.K.

(1)If the scheme administrator of a registered pension scheme fails to comply with a notice under section 250 (registered pension scheme return), the scheme administrator is liable to a penalty of £100.

(2)If the failure continues after a penalty is imposed under subsection (1), the scheme administrator is liable to a further penalty not exceeding £60 for each day on which the failure continues after the day on which that penalty was imposed (but excluding any day for which a penalty under this subsection has already been imposed).

(3)No penalty may be imposed under subsection (1) or (2) in respect of a failure after it has been remedied.

(4)If the scheme administrator of a registered pension scheme fraudulently or negligently—

(a)makes an incorrect return required by a notice under section 250, or

(b)delivers any incorrect accounts, statements or other documents with such a return,

the scheme administrator is liable to a penalty not exceeding £3,000.

258Information required by regulationsU.K.

(1)In section 98 of TMA 1970 (penalties for failure to provide information and providing false information), in the second column of the Table, insert at the appropriate place— “regulations under section 251(1)(a) or (4) of the Finance Act 2004;”.

(2)A person who fails to comply with regulations under section 251(1)(b) (preservation of documents) is liable to a penalty not exceeding £3,000.

F8259Documents and particulars required by noticeU.K.

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260Accounting returnU.K.

F9(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F9(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F9(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F9(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F9(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6)If the scheme administrator of a registered pension scheme fraudulently or negligently makes an incorrect return under section 254, the scheme administrator is liable to a penalty not exceeding the difference between—

(a)the amount of the tax shown in the return, and

(b)the amount of the tax which should have been shown in the return,

or, if no tax is shown in the return, the amount of the tax which should have been shown in the return.

(7)Where the registration of a registered pension scheme has been withdrawn, this section has effect as if references to the scheme administrator were to the person who was or the persons who were the scheme administrator immediately before the registration was withdrawn.

261Enhanced lifetime allowance regulations: documents and informationU.K.

(1)This section applies where an individual fraudulently or negligently—

(a)produces or makes available an incorrect document, or produces an incorrect certificate, in connection with any matter registered in accordance with enhanced lifetime allowance regulations, or

(b)provides false information in connection with any such matter,

and the condition in subsection (2) is met.

(2)The condition is that—

(a)the amount of the individual’s lifetime allowance at the time which is relevant for the purposes of this paragraph, or

(b)the amount of the pension commencement lump sums to which the individual may be entitled at the time which is relevant for the purposes of this paragraph,

would be greater than it actually is were the document or certificate correct or the information true.

(3)The individual is liable to a penalty not exceeding 25% of the relevant excess.

(4)In a case within paragraph (a) of subsection (2), the relevant excess is the difference between what would be the amount of the individual’s lifetime allowance at the time which is relevant for the purposes of that paragraph (were the document or certificate correct or the information true) and whichever is the higher of—

(a)the actual amount of the individual’s lifetime allowance at that time, and

(b)the standard lifetime allowance at that time.

(5)The time which is relevant for the purposes of paragraph (a) of subsection (2)—

(a)where a benefit crystallisation event has occurred in relation to the individual since the document was produced or made available, the certificate produced or the information provided (but before a penalty under this section is imposed), is the time when the benefit crystallisation event occurred, and

(b)otherwise, is the time when the document was produced or made available, the certificate produced or the information provided.

(6)In a case within paragraph (b) of subsection (2), the relevant excess is the difference between—

(a)what would be the amount of the pension commencement lump sums to which the individual may be entitled at the time which is relevant for the purposes of that paragraph (were the document or certificate correct or the information true), and

(b)the actual amount at that time of the pension commencement lump sums to which the individual may be entitled.

(7)The time which is relevant for the purposes of paragraph (b) of subsection (2) is the time when the document was produced or made available, the certificate produced or the information provided.

262Enhanced lifetime allowance regulations: failures to complyU.K.

An individual who fails—

(a)to produce or make available any document required to be produced by enhanced lifetime allowance regulations,

(b)to produce any certificate required to be produced by enhanced lifetime allowance regulations, or

(c)to provide any information required to be provided by enhanced lifetime allowance regulations,

is liable to a penalty not exceeding £3,000.

263Lifetime allowance enhanced protection: benefit accrualU.K.

(1)This section applies where—

(a)paragraph 12 of Schedule 36 (lifetime allowance charge: enhanced protection) applies in relation to an individual, and

(b)relevant benefit accrual occurs in relation to the individual (as to which see paragraph 13 of that Schedule).

(2)If the individual fails to notify the Inland Revenue of the relevant benefit accrual within the period of 90 days beginning with the day on which it occurs, the individual is liable to a penalty not exceeding £3,000.

264False statements etcU.K.

(1)A person who fraudulently or negligently makes a false statement or representation is liable to a penalty not exceeding £3,000 if, in consequence of the statement or representation—

(a)that person or any other person obtains relief from, or repayment of, tax chargeable under this Part, or

(b)a registered pension scheme makes a payment which is an unauthorised payment.

(2)A person who assists in or induces the preparation of any document which the person knows—

(a)is incorrect, and

(b)will, or is likely to, cause a registered pension scheme to make an unauthorised payment,

is liable to a penalty not exceeding £3,000.

265Winding-up to facilitate payment of lump sumsU.K.

(1)This section applies where the winding-up of a registered pension scheme has begun and the Inland Revenue considers the pension scheme is being wound up wholly or mainly for the purpose specified in subsection (2).

(2)That purpose is facilitating the payment of winding-up lump sums or winding-up lump sum death benefits (or both) under the pension scheme.

(3)The scheme administrator is liable to a penalty not exceeding the relevant amount.

(4)The relevant amount is £3,000 in respect of—

(a)each member to whom a winding-up lump sum is paid under the pension scheme, and

(b)each member in respect of whom a winding-up lump sum death benefit is paid under the pension scheme.

266Transfers to insured schemesU.K.

(1)This section applies where sums held for the purposes of, or representing accrued rights under, a registered pension scheme (“the transferor scheme”) are transferred so as to become held for the purposes of, or to represent rights under, a registered pension scheme that is an insured scheme (“the transferee scheme”).

(2)The scheme administrator of the transferor scheme is liable to a penalty not exceeding £3,000 unless the sums are transferred either to the scheme administrator of the transferee scheme or to a relevant insurance company.

(3)In this section—

• “insured scheme” means a pension scheme all the income and other assets of which are invested in policies of insurance, and

• “relevant insurance company” means an insurance company that issued any of the policies of insurance.

[F10Relief from liability in respect of returned unauthorised member paymentsU.K.

266AMember's liabilityU.K.

(1)This section applies where—

(a)a liability to the unauthorised payments charge, or to both the unauthorised payments charge and the unauthorised payments surcharge, has arisen in respect of an unauthorised member payment, and

(b)property or money is transferred, or a sum paid, towards a registered pension scheme pursuant to an order 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) as a result of the unauthorised member payment.

(2)The member of the registered pension scheme to or in respect of whom the unauthorised member payment was made (or, if it was paid after his death, the recipient) may claim relief from—

(a)the relevant proportion of the unauthorised payments charge, and

(b)if a liability to the unauthorised payments surcharge has arisen and subsection (4) is satisfied, the relevant proportion of the unauthorised payments surcharge.

(3)The claim must be made within the period of one year beginning with the day on which the property or money is transferred, or the sum paid.

(4)This subsection is satisfied if no part of the unauthorised member payment and no asset or sum representing it—

(a)has been received by (or on behalf of) the member or a person connected with the member, or

(b)has been held for more than 180 days by a person or succession of persons, other than the member or a person connected with the member, involved in any transaction by which the unauthorised member payment was made.

(5)The relevant proportion of the unauthorised payments charge or the unauthorised payments surcharge is—

(6)But if ASO is greater than UMP, the relevant proportion of the unauthorised payments charge or the unauthorised payments surcharge is the whole of it.

[F11(7)For the purposes of this section whether a person is connected with another person is determined in accordance with section 993 of ITA 2007.]

266BScheme's liabilityU.K.

(1)This section applies where—

(a)the scheme administrator of a registered pension scheme has become liable to the scheme sanction charge in respect of an unauthorised member payment, and

(b)property or money is transferred, or a sum paid, towards a registered pension scheme pursuant to an order 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) as a result of the unauthorised member payment.

(2)The scheme administrator may, within the period of one year beginning with the day on which the property or money is transferred, or the sum paid, claim relief from the relevant proportion of the scheme sanction charge.

(3)The relevant proportion of the scheme sanction charge is—

(4)But if ASO is greater than UMP, the relevant proportion of the scheme sanction charge is the whole of it.]

Discharge of tax liability: good faithU.K.

267Lifetime allowance chargeU.K.

(1)This section applies where the scheme administrator of a registered pension scheme is liable to the lifetime allowance charge in respect of a benefit crystallisation event.

(2)The scheme administrator may apply to the Inland Revenue for the discharge of the scheme administrator’s liability to the lifetime allowance charge in respect of the benefit crystallisation event on the ground mentioned in subsection (3).

(3)The ground is that—

(a)the scheme administrator reasonably believed that there was no liability to the lifetime allowance charge in respect of the benefit crystallisation event, and

(b)in all the circumstances of the case, it would not be just and reasonable for the scheme administrator to be liable to the lifetime allowance charge in respect of the benefit crystallisation event.

(4)On receiving an application under subsection (2), the Inland Revenue must decide whether to discharge the scheme administrator’s liability to the lifetime allowance charge in respect of the benefit crystallisation event.

(5)The scheme administrator may apply to the Inland Revenue for the discharge of part of the scheme administrator’s liability to the lifetime allowance charge in respect of the benefit crystallisation event on the ground mentioned in subsection (6).

(6)The ground is that—

(a)the scheme administrator reasonably believed that the amount of the lifetime allowance charge in respect of the benefit crystallisation event was less than the actual amount, and

(b)in all the circumstances of the case, it would not be just and reasonable for the scheme administrator to be liable to an amount (“the excess amount”) equal to the difference between the amount which the scheme administrator believed to be the amount of the charge and the actual amount.

(7)On receiving an application under subsection (5), the Inland Revenue must decide whether to discharge the scheme administrator’s liability to the lifetime allowance charge in respect of the excess amount (or part of the excess amount).

(8)The discharge of the scheme administrator’s liability to the lifetime allowance charge (or to the excess amount or part of the excess amount) does not affect the liability of any other person to the lifetime allowance charge.

(9)The Inland Revenue must notify the scheme administrator of the decision on an application under this section.

(10)Regulations made by the Board of Inland Revenue may make provision supplementing this section; and the regulations may in particular make provision as to the time limits for the making of an application.

268Unauthorised payments surcharge and scheme sanction chargeU.K.

(1)This section applies where—

(a)a person is liable to the unauthorised payments surcharge in respect of an unauthorised payment, or

(b)the scheme administrator of a registered pension scheme is liable to the scheme sanction charge in respect of a scheme chargeable payment.

(2)The person liable to the unauthorised payments surcharge may apply to the Inland Revenue for the discharge of the person’s liability to the unauthorised payments surcharge in respect of the unauthorised payment on the ground mentioned in subsection (3).

(3)The ground is that in all the circumstances of the case, it would be not be just and reasonable for the person to be liable to the unauthorised payments surcharge in respect of the payment.

(4)On receiving an application by a person under subsection (2) the Inland Revenue must decide whether to discharge the person’s liability to the unauthorised payments surcharge in respect of the payment.

(5)The scheme administrator may apply to the Inland Revenue for the discharge of the scheme administrator’s liability to the scheme sanction charge in respect of a scheme chargeable payment on the ground mentioned in subsection (6) or (7).

(6)In the case of a scheme chargeable payment which is treated as being an unauthorised member payment by section 172[F12, 172A, 172B, 172BA, 172C or 172D or arises under section 181A], the ground is that, in all the circumstances of the case, it would not be just and reasonable for the scheme administrator to be liable to the scheme sanction charge.

(7)In any other case, the ground is that—

(a)the scheme administrator reasonably believed that the unauthorised payment was not a scheme chargeable payment, and

(b)in all the circumstances of the case, it would not be just and reasonable for the scheme administrator to be liable to the scheme sanction charge in respect of the unauthorised payment.

(8)On receiving an application under subsection (5), the Inland Revenue must decide whether to discharge the scheme administrator’s liability to the scheme sanction charge in respect of the unauthorised payment.

(9)The Inland Revenue must notify the applicant of the decision on an application under this section.

(10)Regulations made by the Board of Inland Revenue may make provision supplementing this section; and the regulations may in particular make provision as to the time limits for the making of an application.

269Appeal against decision on discharge of liabilityU.K.

(1)This section applies where the Inland Revenue—

(a)decides to refuse an application under section 267(2) (discharge of liability to lifetime allowance charge) or section 268 (discharge of liability to unauthorised payments surcharge or scheme sanction charge), or

(b)on an application under section 267(5), decides to refuse the application or to discharge the applicant’s liability to the lifetime allowance charge in respect of part only of the excess amount.

(2)The applicant 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 applicant was given notification of the decision.

(6)[F14On an appeal under subsection (1)(a) that is notified to the tribunal, the tribunal] must consider whether the applicant’s liability to the lifetime allowance charge, unauthorised payments surcharge or scheme sanction charge ought to have been discharged.

(7)If [F15the tribunal considers] that the applicant’s liability ought not to have been discharged, [F16the tribunal must] dismiss the appeal.

(8)If [F15the tribunal considers] that the applicant’s liability ought to have been discharged, [F16the tribunal must] grant the application.

(9)[F17On an appeal under subsection (1)(b) that is notified to the tribunal, the tribunal] must consider whether the applicant’s liability to the lifetime allowance charge ought to have been discharged in respect of the excess amount or a greater part of the excess amount.

(10)If [F18the tribunal considers] that the applicant’s liability ought not to have been discharged in respect of the excess amount or a greater part of the excess amount, [F19the tribunal must] dismiss the appeal.

(11)If [F18the tribunal considers] that the applicant’s liability ought to have been discharged in respect of the excess amount or a greater part of the excess amount, [F19the tribunal must] discharge the applicant’s liability in respect of the excess amount or that part of the excess amount.

Scheme administratorU.K.

270Meaning of “scheme administrator”U.K.

(1)References in this Part to the scheme administrator, in relation to a pension scheme, are to the person who is, or persons who are, appointed in accordance with the rules of the pension scheme to be responsible for the discharge of the functions conferred or imposed on the scheme administrator of the pension scheme by and under this Part.

(2)But a person cannot be the person who is, or one of the persons who are, the scheme administrator of a pension scheme unless the person—

(a)is resident in the United Kingdom or another state which is a member State or a non-member EEA State, and

(b)has made the required declaration to the Inland Revenue.

(3)“The required declaration”is a declaration that the person—

(a)understands that the person will be responsible for discharging the functions conferred or imposed on the scheme administrator of the pension scheme by and under this Part, and

(b)intends to discharge those functions at all times, whether resident in the United Kingdom or another state which is a member State or a non-member EEA State.

(4)“Non-member EEA State” means a State which is a contracting party to the Agreement on the European Economic Area signed at Oporto on 2nd May 1992 (as adjusted by the Protocol signed at Brussels on 17th March 1993) but which is not a member State.

271Liability of scheme administratorU.K.

(1)Any liability of a person who is, or of any of the persons who are, the scheme administrator of a registered pension scheme ceases to be a liability of that person on the person ceasing to be, or to be one of the persons who is, the scheme administrator of the pension scheme.

This subsection does not apply to a liability to pay a penalty and is subject to subsection (4).

(2)Where a person becomes, or becomes one of the persons who is, the scheme administrator of a registered pension scheme, the person assumes any existing liabilities of the scheme administrator of the pension scheme, other than any liability to pay a penalty.

(3)Subsection (4) applies where, on the person who is or the persons who are the scheme administrator of a registered pension scheme ceasing to be the scheme administrator, there is no scheme administrator of the pension scheme.

(4)Any liability of the person or persons as scheme administrator remains a liability of that person or those persons as if still the scheme administrator (unless dead or having ceased to exist) until another person becomes, or other persons become, the scheme administrator of the pension scheme.

(5)But a person who retains, or persons who retain, any liability by virtue of subsection (4) may apply to the Inland Revenue to be released from the liability.

(6)On receipt of the application the Inland Revenue must decide whether or not to release the applicant or applicants from the liability and must notify the applicant, or each of the applicants, of the decision.

(7)If the decision is not to release the applicant or applicants from the liability the applicant or applicants may appeal against the decision.

F20(8). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(9)The appeal must be brought within the period of 30 days beginning with the day on which the applicant was notified of the decision.

F21(10). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(11)[F22On an appeal that is notified to the tribunal, the tribunal] must consider whether the applicant or applicants ought to have been released from the liability.

(12)If [F23the tribunal decides] that the applicant or applicants ought not to have been released from the liability, [F24the tribunal must] dismiss the appeal.

(13)If [F25the tribunal decides] that the applicant or applicants ought to have been released from the liability, the applicant is, or applicants are, to be treated as having been released from the liability (but subject to any further appeal F26...).

272Trustees etc. liable as scheme administratorU.K.

(1)This section applies in relation to a registered pension scheme if—

(a)there is no scheme administrator of the pension scheme and no-one who remains subject to the liabilities of the scheme administrator by virtue of section 271(4) (continuation of liability where no scheme administrator),

(b)the person who is, or all the persons who are, the scheme administrator of the pension scheme or remain so subject cannot be traced, or

(c)the person who is, or all the persons who are, the scheme administrator of the pension scheme or remain so subject are in serious default.

(2)Any person who assumes liability by reason of this section applying in relation to the pension scheme—

(a)is liable to pay any tax (and any interest on tax) due from the scheme administrator of the pension scheme by virtue of this Part, and

(b)is responsible for the discharge of all other obligations imposed on the scheme administrator of the pension scheme by or under this Part.

(3)In subsection (2)—

(a)the references in paragraph (a) to tax, and interest on tax, include any that has become due before this section applied in relation to the pension scheme and remains unpaid, and

(b)the reference in paragraph (b) to obligations includes any that have become due before this section applied in relation to the pension scheme and remain unsatisfied, other than any liability to pay a penalty which has become due before this section so applied.

(4)The following heads specify the persons who assume liability by reason of this section applying in relation to the pension scheme; but if—

(a)a person assumes, or persons assume, liability by virtue of being specified under one head, and

(b)that person, or any of those persons, can be traced and is not in default,

no-one assumes liability by virtue of being specified under a later head.

Head 1

If there are one or more trustees of the pension scheme who are resident in the United Kingdom, that trustee or each of those trustees.

Head 2

If there are one or more persons who control the management of the pension scheme, that person or each of those persons.

Head 3

If alive or still in existence, the person, or any of the persons, who established the pension scheme and any person by whom that person, or any of those persons, has been directly or indirectly succeeded in relation to the provision of benefits under the pension scheme.

Head 4

If the pension scheme is an occupational pension scheme, any sponsoring employer.

Head 5

If there are one or more trustees of the pension scheme who are not resident in the United Kingdom, that trustee or each of those trustees.

(5)Where a person assumes liability by reason of this section applying in relation to the pension scheme, the Inland Revenue must, as soon as is reasonably practicable, notify the person of that fact; but failure to do so does not affect the person’s liability.

(6)For the purposes of this section a person is in default if the person—

(a)has failed to pay all or any of the tax (or interest on tax) due from the person by virtue of this Part, or

(b)has failed to discharge any other obligation imposed on the person by or under this Part,

and a person in default is in serious default if the Inland Revenue considers the failure to be of a serious nature.

273Members liable as scheme administratorU.K.

(1)This section applies in relation to a registered pension scheme if—

(a)a person has, or persons have, assumed liability by reason of section 272 (trustees etc.) applying in relation to the pension scheme,

(b)the person has, or the persons have, become liable to pay tax (or interest on tax) which became due by virtue of section 239 (scheme sanction charge) or section 242 (de-registration charge) before section 272 applied in relation to the pension scheme,

(c)that person, or each of those persons, has failed (in whole or in part) to satisfy the liability, and

(d)that person, or each of those persons, has either died or ceased to exist or is a person in whose case the Inland Revenue considers the person’s failure to satisfy the liability to be of a serious nature.

(2)Any person who was a member of the pension scheme at any time during the relevant three-year period is liable to pay the appropriate share of the unpaid amount if—

(a)any of the conditions in subsection (5) is met, and

(b)the Inland Revenue notifies the person of the person’s liability to do so.

(3)“The relevant three-year period” is the period of three years ending with the date on which the liability to pay the tax arose.

(4)The “appropriate share of the unpaid amount”, in the case of a person, is—

(5)The conditions referred to in subsection (2)(a) are—

(a)that the pension scheme F27... was not an occupational pension scheme,

(b)that at any time during the relevant three-year period the pension scheme received a transfer value in which there were represented relevant personal pension contributions made by or in respect of the person,

(c)that the pension scheme was an occupational pension scheme and at any time during the relevant three-year period the person was a controlling director of a company that was a sponsoring employer, and

(d)that at any time during the relevant three-year period the pension scheme received a transfer value in which there were represented relevant controlling director contributions made by or in respect of the person.

(6)A notification under subsection (2)(b) may be included in an assessment in respect of a liability under this section; and such an assessment made in relation to an amount is not out of time if made within the period of three years beginning with the date on which the person assessed first became liable to pay the amount.

(7)“Relevant personal pension contributions” means contributions under a pension scheme (whether or not the pension scheme from which the transfer value was received) which F28... was not an occupational pension scheme.

(8)“Relevant controlling director contributions” means contributions under an occupational pension scheme (whether or not the pension scheme from which the transfer value was received) made by reference to service (or remuneration in respect of service) as a controlling director of a company that was a sponsoring employer.

(9)A person is a “controlling director” of a company if the person is a director of the company and is within [F29section 452(2)(b) of the Corporation Tax Act 2010] (director able to control 20% of ordinary share capital) in relation to the company.

(10)References to receipt of a transfer value by the pension scheme are to the transfer, so as to become held for the purposes of or to represent rights under the pension scheme, of any sums or assets held for the purposes of or representing accrued rights under any other pension scheme.

[F30(11)For the purposes of this section whether a person is connected with another person is determined in accordance with section 993 of ITA 2007.]

[F31273ZAIncome and gains from taxable propertyU.K.

(1)The Treasury may make regulations in relation to cases where—

(a)an investment-regulated pension scheme holds an interest in taxable property,

(b)the pension scheme is non-UK resident, and

(c)the property is not located in the United Kingdom.

(2)The regulations may make provision for a member of the pension scheme for the purposes of whose arrangement the interest is held to be liable to the scheme sanction charge so far as relating to a scheme chargeable payment treated as made by the pension scheme—

(a)under section 185A (income from taxable property) by virtue of the pension scheme holding the interest in the property, or

(b)under section 185F (gains from taxable property) by virtue of a gain treated as accruing to the pension scheme in respect of the interest in the property.

(3)The regulations may make provision—

(a)for the member to be liable to all of the scheme sanction charge arising by virtue of the scheme chargeable payment or to the charge to such extent as the regulations may provide,

(b)for the charge to be apportioned between members of the pension scheme where the interest in the property is held for the purposes of more than one arrangement under the pension scheme, and

(c)for the scheme administrator not to be liable to the scheme sanction charge or not to be liable to the charge to such extent as the regulations may provide.

(4)The regulations may make provision for cases where—

(a)a member of a pension scheme would otherwise be liable to the scheme sanction charge arising by virtue of a scheme chargeable payment treated as made by the pension scheme under section 185F in a tax year,

(b)the member does not meet such conditions as to residence in the tax year as the regulations may prescribe,

(c)the member meets those conditions in a subsequent tax year, and

(d)such other conditions as the regulations may prescribe are met.

(5)The regulations may make provision for the member—

(a)not to be liable to the scheme sanction charge in the tax year in which the scheme chargeable payment is treated as made, but

(b)to be liable in a subsequent tax year to such extent as the regulations may provide to the scheme sanction charge arising by virtue of the payment.

(6)The regulations may—

(a)amend this Part (apart from this section),

(b)include provision having effect in relation to times before they are made,

(c)contain transitional provisions and savings, and

(d)make different provision for different cases.

(7)For the purposes of this section a pension scheme is non-UK resident if it is established in a country or territory outside the United Kingdom.]

[F32273AInsurance company liable as scheme administratorU.K.

(1)The Board of Inland Revenue may make regulations in relation to cases where an insurance company makes a payment of—

(a)a pension protection lump sum death benefit,

(b)an annuity protection lump sum death benefit, or

(c)an unsecured pension fund lump sum death benefit,

which (by virtue of section 161(3) and (4)) is treated for the purposes of Chapter 3 as made by a registered pension scheme.

(2)The regulations may provide that the insurance company—

(a)is to be treated as the scheme administrator for the purposes of the operation of section 206 in relation to the lump sum death benefit, and

(b)is responsible for the discharge of all obligations imposed on the scheme administrator by or under this Part so far as related to the liability imposed by that section to pay tax in respect of it.

(3)Where an insurance company is liable to pay any tax or interest, or is responsible for the discharge of any other obligation, by virtue of regulations under this section, no other person is liable to pay that tax, or responsible for the discharge of that obligation, under sections 270 to 273.]

274SupplementaryU.K.

(1)The fact that any person is liable to pay any tax or interest, or is responsible for the discharge of any other obligation, under section 272 (trustees etc.) or section 273 (members) does not relieve any other person of any liability to pay the tax or interest, or any obligation to discharge the obligation, arising—

(a)by reason of that other person being, or being one of the persons who is, the scheme administrator of the pension scheme, or

(b)under section 271(4) (continuation of liability where no scheme administrator).

(2)Where a liability imposed on the scheme administrator of a registered pension scheme falls to be satisfied by two or more persons (whether or not they constitute the scheme administrator), they are jointly and severally liable.

(3)No liability to pay tax or interest, or other obligation, of any person in relation to a registered pension scheme arising—

(a)by reason of the person being, or being one of the persons who is, the scheme administrator of the pension scheme concerned, or

(b)under section 271(4), 272 or 273 [F33or regulations under section 273A],

is affected by the termination of the pension scheme or by its ceasing to be a registered pension scheme.