C5C14C15C12C11C1C7C6C3C13C2Part 4Pension schemes etc

Annotations:
Modifications etc. (not altering text)
C7

Pt. 4 modified (1.7.2008) (N.I.) (with effect in accordance with reg. 1 of the amending Rule) by The Health and Social Care (Pension Scheme) Regulations (Northern Ireland) 2008 (S.R. 2008/256), regs. 1, 124(1) (with regs. 134, 258)

C3

Pt. 4 applied (21.7.2009) by Finance Act 2009 (c. 10), Sch. 35 para. 18

C13

Pt. 4 modified (19.7.2011) by Finance Act 2011 (c. 11), Sch. 18 para. 14(3)

C2

Pt. 4 applied (with modifications) (with application in accordance with Sch. 22 para. 1 of the amending Act) by Finance Act 2013 (c. 29), Sch. 22 para. 1(2)

C13Chapter 8Supplementary

Interpretation

274AF12Power to split schemes

1

The Board of Inland Revenue may make regulations for and in connection with treating registered pension schemes to which this section applies as if they were a number of separate registered pension schemes for such of the purposes of this Part and of provision made under it as are prescribed by the regulations.

2

This section applies to pension schemes prescribed, or of a description prescribed, by the regulations.

3

The provision that may be made by the regulations may, in particular, include—

a

provision as to who is to be treated as the scheme administrator in relation to each of the separate pension schemes, and

b

any such other modifications of the provision made by and under this Part as appears appropriate in consequence of, or otherwise in connection with, provision made under subsection (1) (including provision so made by virtue of paragraph (a) of this subsection).

4

The regulations may make different provision for different cases.

C8275Insurance company

1

In this Part “insurance company” means—

a

a person who has permission under Part 4 of FISMA 2000 to effect or carry out contracts of long-term insurance, or

b

an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to FISMA 2000 (certain direct insurance undertakings) which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts of long-term insurance.

2

“Contracts of long-term insurance” means contracts which fall within Part 2 of Schedule 1 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544).

C4276Relevant valuation factor

1

For the purposes of this Part the relevant valuation factor in relation to any registered pension scheme, or any arrangement under a registered pension scheme, is 20.

2

But the Inland Revenue and the scheme administrator of any registered pension scheme may agree that the relevant valuation factor in relation to the pension scheme, or any arrangement under the pension scheme, is to be a number greater than 20.

277Valuation assumptions

For the purposes of this Part the valuation assumptions in relation to a person, benefits and a date are—

a

if the person has not reached such age (if any) as must have been reached to avoid any reduction in the benefits on account of age, that the person reached that age on the date, and

b

that the person’s right to receive the benefits had not been occasioned by physical or mental impairment.

278Market value

1

For the purposes of this Part the market value of an asset held for the purposes of a pension scheme is to be determined in accordance with section 272 of TCGA 1992.

2

Where an asset held for the purposes of a pension scheme is a right or interest in respect of any money lent (directly or indirectly) to any relevant associated person, the value of the asset is to be treated as being the amount owing (including any unpaid interest) on the money lent.

3

The following are “relevant associated persons”—

a

any employer who has at any time (whether or not before the making of the loan) made contributions under the pension scheme,

b

any company connected (at the time of the making of the loan or subsequently) with any such employer,

c

any person who has at any time (whether or not before the making of the loan) been a member of the pension scheme, and

d

any person connected (at the time of the making of the loan or subsequently) with any such person.

F413A

For the purposes of this Part the market value of taxable property, or of an interest in taxable property, is to be determined in accordance with section 272 of TCGA 1992.

3B

Subsection (3A) is subject to any provision made by regulations under paragraph 36(2) of Schedule 29A.

F14

For the purposes of this section whether a person is connected with another person is determined in accordance with section 993 of ITA 2007.

C10279Other definitions

1

In this Part—

  • F48“abatement”, in relation to a scheme pension F42to which a person has become entitled under a public service pension scheme, means the reduction of the pension (including its reduction to nil) in accordance with the rules of the pension scheme by reason of F21the person's employment in public service,

  • “the Board of Inland Revenue” means the Commissioners of Inland Revenue,

  • F23“consumer prices index” means—

    1. a

      the general index for consumer prices published by the Statistics Board, or

    2. b

      if that index is not published for a relevant month, any substituted index or index figures published by the Statistics Board,

  • F65...

  • “employee” and “employer” have the same meaning as in the employment income Parts of ITEPA 2003 (see sections 4 and 5 of that Act) but include (respectively) a former employee and a former employer (and “employment” is to be read accordingly),

  • “the Inland Revenue” means any officer of the Board of Inland Revenue,

  • “normal minimum pension age” means—

    1. a

      before 6th April 2010, 50, and

    2. b

      on and after that date, 55,

  • “pension credit” and “pension debit” have the same meaning as in Chapter 1 of Part 4 of WRPA (see section 46(1) of that Act) or Chapter 1 of Part 5 of WRP(NI)O 1999 (see Article 43(1) of that Order), F56and

  • “pension sharing order or provision” means any order or provision mentioned in section 28(1) of WRPA 1999 or Article 25(1) of WRP(NI)O 1999,

  • F23“pensionable age” has the meaning given by the rules in paragraph 1 of Schedule 4 to the Pensions Act 1995 or paragraph 1 of Schedule 2 to the Pensions (Northern Ireland) Order 1995,

  • F28...

F221A

In this Part, so far as it forms part of the Corporation Tax Acts, expressions which are defined for the purposes of the Income Tax Acts are to be given the same meaning as they have in the Income Tax Acts.

2

In this Part references to payments made, or benefits provided, by a pension scheme are to payments made or benefits provided from sums or assets held for the purposes of the pension scheme.

3

For the purposes of this Part the sums and assets held for the purposes of an arrangement under a pension scheme are so much of the sums and assets held for the purposes of the pension scheme under which the arrangement is made as are properly attributable, in accordance with the provisions of the pension scheme and any just and reasonable apportionment, to the arrangement.

280Abbreviations and general index

1

In this Part—

  • “NIA 1965” means the National Insurance Act 1965 (c. 51),

  • “NIA(NI) 1966” means the National Insurance Act (Northern Ireland) 1966 (c. 6 (N.I.)),

  • “TMA 1970” means the Taxes Management Act 1970 (c. 9),

  • “ICTA 1970” means the Income and Corporation Taxes Act 1970 (c. 10),

  • “ICTA” means the Income and Corporation Taxes Act 1988 (c. 1),

  • “SSCBA 1992” means the Social Security Contributions and Benefits Act 1992 (c. 4),

  • “SSCB(NI)A 1992” means the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7),

  • “TCGA 1992” means the Taxation of Chargeable Gains Act 1992 (c. 12),

  • “WRPA 1999” means the Welfare Reform and Pensions Act 1999 (c. 30),

  • “WRP(NI)O 1999” means the Welfare Reform and Pensions (Northern Ireland) Order 1999 (S.I. 1999/ 3147 (N.I. 11)),

  • “FISMA 2000” means the Financial Services and Markets Act 2000 (c. 8), F6...

  • “ITEPA 2003” means the Income Tax (Earnings and Pensions) Act 2003 (c. 1), F16...

  • F39 “ITTOIA 2005” means the Income Tax (Trading and Other Income Act) 2005F25...

  • F31 “ITA 2007” means the Income Tax Act 2007,

  • F53“FA 2008” means the Finance Act 2008, F3...

  • F11 “CTA 2009” means the Corporation Tax Act 2009F5and

  • “CTA 2010” means the Corporation Tax Act 2010

  • F10 “FA 2012” means the Finance Act 2012

2

In this Part the following expressions are defined or otherwise explained by the provisions indicated—

F52abatement

section 279(1)

accounting period

section 834(1) of ICTA

F60acquiring an interest in property (for the purposes of the taxable property provisions)

paragraphs 12 and 27 to 29 of Schedule 29A

active member (of a pension scheme)

section 151(2)

active membership period (insections 221 to 223)

section 221(4) and (5)

F51additional rate

section 6(2) of ITA 2007 (as applied by section 989 of that Act)

amount crystallised

section 216

annual allowance

section 228

annual allowance charge

section 227(1)

annuity protection lump sum death benefit

paragraph 16 of Schedule 29

arrangement

section 152(1)

authorised surplus payment

section 177

available (in relation to a person’s lifetime allowance)

section 219

basic rate

F9section 6(2) of ITA 2007 (as applied by section 989 of that Act)

basic rate limit

F33section F410 of ITA 2007 (as applied by section 989 of that Act)

benefits (provided by pension scheme)

section 279(2)

benefit crystallisation event

section 216

the Board of Inland Revenue

section 279(1)

borrowing (in Chapter 3)

section 163

F60building (for the purposes of the taxable property provisions)

paragraph 7(2) of Schedule 29A

cash balance arrangement

section 152(3)

cash balance benefits

section 152(5)

chargeable gain

F59section 989 of ITA 2007

charity

F66section 989 of ITA 2007

company

F64section 992 of ITA 2007

compensation payment

section 178

F46consumer prices index

section 279(1)

contribution

sections188(4) to (6) and 195

defined benefits

section 152(7)

defined benefits arrangement

section 152(6)

defined benefits lump sum death benefit

paragraph 13 of Schedule 29

F27. . .

F27. . .

F57dependants' annuity

paragraph 17 of Schedule 28

dependants' scheme pension

paragraph 16 of Schedule 28

F57dependants' short-term annuity

paragraph 20 of Schedule 28

F47. . .

F47. . .

F58dependant's drawdown pension fund

paragraph 22 of Schedule 28

F38drawdown pension fund lump sum death benefit

paragraph 17 of Schedule 29

employee and employer (and employment)

section 279(1)

employment income

section 7(2) of ITEPA 2003

enhanced lifetime allowance regulations

section 256(2)

entitled (in relation to a lump sum)

section 166(2)

entitled (in relation to a pension)

section 165(3)

higher rate

F26section 6(2) of ITA 2007 (as applied by section 989 of that Act)

F54higher rate limit

section 10 of ITA 2007

F60holding an interest in a person (for the purposes of the taxable property provisions)

paragraph 16(2) to (4) of Schedule 29A

F60holding an interest in property (for the purposes of the taxable property provisions)

paragraph 13 of Schedule 29A

F60holding directly an interest in a vehicle (for the purposes of the taxable property provisions)

paragraph 20(3) of Schedule 29A

F60holding directly an interest in property (for the purposes of the taxable property provisions)

paragraphs 14 and 15 of Schedule 29A

F60holding indirectly an interest in a vehicle (for the purposes of the taxable property provisions)

paragraph 20(4) of Schedule 29A

F60holding indirectly an interest in property (for the purposes of the taxable property provisions)

paragraph 16(1) of Schedule 29A

hybrid arrangement

section 152(8)

ill-health condition

paragraph 1 of Schedule 28

the individual (in sections 215 to 219)

section 214(5)

the Inland Revenue

section 279(1)

insurance company

section 275

F60investment-regulated pension scheme (for the purposes of the taxable property provisions)

paragraphs 1 to 3 of Schedule 29A

investments (in relation to a pension scheme)

section186(3) and (4)

liability (in Chapter 3)

section 163

lifetime allowance (in relation to a person)

section 218

lifetime allowance charge

section 214(1)

lifetime allowance enhancement factors

section 218(5)

lifetime allowance excess lump sum

paragraph 11 of Schedule 29

lifetime annuity

paragraph 3 of Schedule 28

loan (in Chapter 3)

section 162

lump sum death benefit

section 168(2)

market value

section 278

member (of a pension scheme)

section 151(1)

F27. . .

F27. . .

F58member's drawdown pension fund

paragraph 8 of Schedule 28

member’s unsecured pension fund

paragraph 8 of Schedule 28

money purchase arrangement

section 152(2)

money purchase benefits

section 152(4)

F34net income

section 23 of ITA 2007 (as applied by section 989 of that Act),

net pay pension scheme

section 191(9)

normal minimum pension age

section 279(1)

occupational pension scheme

section 150(5)

overseas arrangement active membership period (in sections 224 to 226)

section 224(7) and (8)

overseas pension scheme

section 150(7)

payment (in Chapter 3)

section 161

payments (made by pension scheme)

section 279(2)

pension

section 165(2)

F46pensionable age

section 279(1)

pension commencement lump sum

paragraph 1of Schedule 29

pension credit and pension debit

section 279(1)

F7pension death benefit

section 167(2)

pension input amount

section 229

pension input period

section 238

pension protection lump sum death benefit

paragraph 14 of Schedule 29

pension scheme

section 150(1)

the pension scheme (in sections 215 to 219)

section 214(5)

pension sharing order or provision

section 279(1)

pensioner member (of a pension scheme)

section 151(3)

period of account

F45section 989 of ITA 2007

personal representatives

F61section 989 of ITA 2007

property investment LLP

F55section 1004 of ITA 2007

public service pension scheme

section 150(3)

qualifying recognised overseas pension scheme

section 169(2)

recognised overseas pension scheme

section 150(8)

recognised overseas scheme arrangement (insections 224 to 226)

section 224(2) and (3)

registered pension scheme

section 150(2)

F30related dependants' annuity

paragraph 3(4A) of Schedule 29

F18related dependants' scheme pension

paragraph 3(7C) of Schedule 29

relevant overseas individual

section 221(3)

relevant UK earnings

section 189(2)

relevant UK individual

section 189

relevant valuation factor

section 276

relievable pension contributions

section 188(2) and (3)

F60residential property (for the purposes of the taxable property provisions)

paragraphs 7(1), 8 and 9 of Schedule 29A

retail prices index

F20section 989 of ITA 2007

scheme administrator

section 270 (but see also sections 271 to 274)

scheme chargeable payment

section 241

F60scheme-held taxable property

section 185B(3)

scheme manager

section 169(3)

scheme pension

paragraph 2 of Schedule 28

scheme sanction charge

section 239(1)

serious ill-health lump sum

paragraph 4 of Schedule 29

F40serious ill-health lump sum charge

section 205A(1)

short service refund lump sum

paragraph 5 of Schedule 29

short service refund lump sum charge

section 205(1)

F57short-term annuity

paragraph 6 of Schedule 28

special lump sum death benefits charge

section 206(1)

sponsoring employer

section 150(6)

standard lifetime allowance

section 218(2) and (3)

sums and assets held for the purposes of an arrangement

section 279(3)

F60sums and assets held for the purposes of an arrangement (for the purposes of the taxable property provisions)

paragraph 5 of Schedule 29A

F60taxable property (for the purposes of the taxable property provisions)

paragraphs 6, 10 and 11 of Schedule 29A

F60the taxable property provisions

paragraph 1(3) of Schedule 29A

tax year

F50section 4(2) of ITA 2007 (as applied by section 989 of that Act)

the tax year 2006-07 etc.

F29section 4(4) of ITA 2007 (as applied by section 989 of that Act)

total income

F63section 23 of ITA 2007 (as applied by section 989 of that Act)

total pension input amount

section 229

F14. . .

F14. . .

F17transitional 2013/14 lump sum

paragraph 11A of Schedule 29

trivial commutation lump sum

paragraph 7 of Schedule 29

unauthorised employer payment

section 160(4)

unauthorised member payment

section 160(2)

unauthorised payment

section 160(5)

unauthorised payments charge

section 208(1)

unauthorised payments surcharge

section 209(1)

uncrystallised funds lump sum death benefit

paragraph 15 of Schedule 29

F8. . .

F8. . .

valuation assumptions (in relation to a person)

section 277

F60vehicle (in the taxable property provisions)

paragraph 20(2) of Schedule 29A

winding-up lump sum

paragraph 10 of Schedule 29

winding-up lump sum death benefit

paragraph 21 of Schedule 29

Other supplementary provisions

I1281Minor and consequential amendments

1

Schedule 35 contains minor and consequential amendments of enactments in consequence of, or otherwise in connection with, this Part.

2

The Treasury may by order make such other amendments (including repeals and revocations) as may appear appropriate in consequence of, or otherwise in connection with, this Part—

a

in any enactment contained in an Act passed before 6th April 2006 or in the Session in which that date falls, and

b

in any instrument made before that date or in the Session in which that date falls.

F372A

The Treasury may by order make in any relevant enactment such amendments (including repeals and revocations) as may appear appropriate in consequence of, or otherwise in connection with, any amendment (or repeal or revocation) made in this Part by any enactment contained in an Act passed after this Act (an “amending Act”).

2B

For this purpose a relevant enactment is—

a

an enactment contained in an Act passed, or

b

an instrument made,

before the passing of the amending Act or in the Session in which the amending Act is passed.

3

An order under subsection (2) F24or (2A) may include any transitional provisions or savings appearing to the Treasury to be appropriate.

F364

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

C13C9282C13Orders and regulations

F43A1

Any order or regulations made by the Treasury or the Commissioners for Her Majesty's Revenue and Customs under this Part may include provision having effect in relation to times before the order is, or regulations are, made if that provision does not increase any person's liability to tax.

A2

Subsection (A1) does not limit any specific power to make provision by an order or regulations in relation to times before the order is, or regulations are, made.

1

Any power of the Treasury or the F2Commissioners for Her Majesty's Revenue and Customs to make any order or regulations under this Part is exercisable by statutory instrument.

F441A

No order may be made under section 208(6), 209(7), 215(2A), F35237B(11), 240(3A) or 242(5)F49, no order may be made under section 228(2) which specifies an amount for any tax year less than the annual allowance for the immediately preceding tax year and no order may be made under section 238A which increases any person's liability to tax unless a draft of the statutory instrument containing it has been laid before, and approved by a resolution of, the House of Commons.

2

Any statutory instrument containing any order or regulations made by the Treasury or the F2Commissioners for Her Majesty's Revenue and Customs under this Part F19, if made without a draft having been approved by a resolution of the House of Commons, is subject to annulment in pursuance of a resolution of the House of Commons.

283Transitionals and savings

1

Schedule 36 contains miscellaneous transitional provisions and savings.

2

The Treasury may by order make any other transitional provision which may appear appropriate in consequence of, or otherwise in connection with, this Part or the repeals made by this Act in consequence of this Part.

3

An order under subsection (2) may, in particular, include savings from the effect of any amendment made by this Part or any repeal made by this Act in consequence of this Part.

F623A

The Treasury may by order make any transitional provision which may appear appropriate in consequence of, or otherwise in connection with, any amendment (or repeal or revocation) made in this Part by any enactment contained in an Act passed after this Act (an “amending Act”).

3B

An order under subsection (3A) may, in particular, include savings from the effect of any amendment (or repeal or revocation) made by the amending Act.

F153C

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

4

Nothing in Schedule 36 limits the power conferred by subsection (2) F32or (3A).

5

Nothing in that Schedule or in any provision made by virtue of subsection (2) F13or (3A) prejudices the operation of sections 16 and 17 of the Interpretation Act 1978 (c. 30) (effect of repeals).

284Commencement

1

Chapters 3 to 7 and section 281 (with Schedule 35) do not come into force until 6th April 2006.

2

But any power to make an order or regulations under any of those provisions may be exercised at any time after this Act is passed.