Finance Act 2004

InterpretationU.K.

[F1274APower to split schemesU.K.

(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.]

275Insurance companyU.K.

(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).

276Relevant valuation factorU.K.

(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 assumptionsU.K.

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 valueU.K.

(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.

[F2(3A)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.]

[F3(4)For the purposes of this section whether a person is connected with another person is determined in accordance with section 993 of ITA 2007.]

279Other definitionsU.K.

(1)In this Part—

• [F4“abatement”, in relation to a scheme pension [F5to 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 [F6the person's employment] in public service,]

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

• [F7“consumer prices index” means—

  (a)

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

  (b)

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

• F8...

• “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—

  (a)

  before 6th April 2010, 50, and

  (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), [F9and]

• “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,

• [F7“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,]

• [F10“Scottish basic rate limit” means a rate limit set by the Scottish Parliament under section 80C(2A) of the Scotland Act 1998 for the purposes of determining the extent to which a Scottish taxpayer’s income is charged at the Scottish basic rate where a Scottish rate resolution under that Act has set more than one rate for the tax year.]

• F11...

[F12(1A)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.]

[F13(1B)In this Part “Master Trust scheme” means a pension scheme—

(a)that is a Master Trust scheme within the meaning of the Pension Schemes Act 2017 (see sections 1 and 2 of that Act) or corresponding provision in force in Northern Ireland, and

(b)whose operation would be unlawful under Part 1 of that Act (Master Trusts), or corresponding provision in force in Northern Ireland, were the scheme not authorised under that Part or that corresponding provision.

(1C)For the purposes of determining whether the condition in subsection (1B)(b) is met, the following are to be ignored—

(a)any regulations under section 40 of the Pension Schemes Act 2017 (regulations modifying application of Part 1 of that Act);

(b)any provision in force in Northern Ireland corresponding to regulations that could be made under that section.

(1D)For the purposes of this Part a Master Trust scheme is “unauthorised” if—

(a)it is not authorised under Part 1 of the Pension Schemes Act 2017 or corresponding provision in force in Northern Ireland, and

(b)its operation would be unlawful under that Part or that corresponding provision without such authorisation.

(1E)Section 1169 of the Companies Act 2006 (dormant companies) applies for the purposes of this Part.]

(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 indexU.K.

(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), F14...

• “ITEPA 2003” means the Income Tax (Earnings and Pensions) Act 2003 (c. 1), F15...

• [F16 “ITTOIA 2005” means the Income Tax (Trading and Other Income Act) 2005] F17...

• [F18 “ITA 2007” means the Income Tax Act 2007],

• [F19“FA 2008” means the Finance Act 2008, ] F20...

• [F21 “CTA 2009” means the Corporation Tax Act 2009] [F22and

• “CTA 2010” means the Corporation Tax Act 2010]

• [F23 “FA 2012” means the Finance Act 2012]

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