PART 1Consequential Amendments to Primary Legislation

Amendment of the Welfare Reform and Pensions Act 199915

1

The Welfare Reform and Pensions Act 199930 is amended as follows.

2

In section 1 (meaning of “stakeholder pension scheme”)—

a

in subsection (8)—

i

omit “, except in so far as is necessary to ensure that the scheme has tax-exemption or tax-approval (within the meaning of the 1993 Act),”;

ii

for paragraph (b) substitute—

b

contracts and schemes that became registered pension schemes by virtue of paragraph 1(1)(f) of Schedule 36 to the Finance Act 2004 (pension schemes etc.: transitional provisions and savings)

b

for subsection (9) substitute—

9

The eighth condition is that the scheme is a registered pension scheme under section 153 of the Finance Act 2004 (registration of pension schemes).

3

In section 11 (effect of bankruptcy on pension rights: approved arrangements)—

a

in subsection (2)—

i

for paragraph (a) substitute—

a

a pension scheme registered under section 153 of the Finance Act 2004;

ii

omit paragraphs (b), and (d) to (f);

iii

in paragraph (c) for “a retirement benefits scheme” substitute “an occupational pension scheme”; and

iv

for paragraph (g) substitute—

g

an annuity purchased for the purpose of giving effect to rights under a scheme falling within paragraph (a), including an annuity in payment before 6th April 2006, giving effect to rights under any scheme approved—

i

before that date under Chapters 1, 3 or 4 of Part 14 of the Taxes Act; or

ii

any relevant statutory scheme, as defined in section 611 of that Act;

b

omit subsection (3);

c

for subsection (4) substitute—

4

Subsection (5) applies if—

a

at the time when a bankruptcy order is made against a person, an appeal against a decision not to register a pension scheme has been made under section 156 of the Finance Act 2004, and

b

the decision of the General or Special Commissioners (see section 156(3) of that Act) is to uphold the decision of Her Majesty’s Revenue and Customs not to register the scheme.

d

in subsection (5)(a) after “the” insert “General or Special”;

e

for subsection (6) substitute—

6

Subsection (7) applies if, at any time after a bankruptcy order is made against a person Her Majesty’s Revenue and Customs—

a

give notice withdrawing registration of the pension scheme under section 157 of the Finance Act 2004, and

b

the date specified as being that from which de-registration occurs under sub-section (4) of that section (“the de-registration date”) is the date from which the scheme ceases to be a registered pension scheme.

f

in subsection (8) for “withdrawal date” substitute “de-registration date”;

g

in subsection (11) for paragraphs (a) and (b) substitute—

a

“occupational pension scheme” has the meaning given in section 150(5) of the Finance Act 2004;

b

“pension scheme” has the meaning given in section 150(1) of the Finance Act 2004 and “registered pension scheme” means a pension scheme registered under section 153 of the Finance Act 2004;

4

In sections 26(1) (interpretation of Part 3) and 46(1) (interpretation of Chapter 1 of Part 4) for the definition of “retirement annuity contract” substitute—

  • “retirement annuity contract” means an annuity contract or trust scheme approved under section 620 or 621 of the Income and Corporation Taxes Act 1988 or a substituted contract within the meaning of section 622(3) of that Act which became a registered pension scheme by virtue of paragraph 1(1)(f) of Schedule 36 to the Finance Act 2004,

5

In paragraph 7(1) of Schedule 5 (pension credits: mode of discharge)—

a

for “approved for the purposes of Part 14 of the Income and Corporation Taxes Act 1988,” substitute “a registered pension scheme under section 153 of the Finance Act 2004,”;

b

in sub-paragraph (a) for “approved” substitute “registered”.