The Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) (No. 2) Regulations 2023

CHAPTER 4Repayments

Repayments: entitlement

37.—(1) A specified individual is entitled to the repayment by HMRC of an annual allowance overpayment, a lifetime allowance overpayment, an unauthorised payments charge overpayment or an unauthorised payments surcharge overpayment only on the making of an application (“a repayment application”).

(2) A payment is an “annual allowance overpayment” if—

(a)before the relevant time, a liability to the annual allowance charge arose in respect of a specified individual for a relevant tax year, and

(b)the amount paid by the individual in respect of that charge, by virtue of the operation of a relevant rectification provision or regulation 14 of the 2023 Regulations (local government new schemes: final salary uplifts ignored in calculating pension input amount), exceeds the amount of that liability.

(3) A payment is a “lifetime allowance overpayment” if—

(a)before the relevant time, a liability to the lifetime allowance charge arose in respect of a specified individual for a relevant tax year in connection with a benefit crystallisation event,

(b)the individual is liable to the lifetime allowance charge in respect of that benefit crystallisation event and has paid an amount in respect of that liability, and

(c)the amount paid, by virtue of the operation of a relevant rectification provision, exceeds the amount of that liability.

(4) A payment is an “unauthorised payments charge overpayment” if—

(a)before the relevant time, an unauthorised member payment(1) was made by a relevant pension scheme to, or in respect of, a specified individual,

(b)the individual is liable to the unauthorised payments charge in respect of that payment and has paid an amount in respect of that liability, and

(c)the amount paid, by virtue of the operation of a relevant rectification provision, exceeds the amount of that liability.

(5) A payment is an “unauthorised payments surcharge overpayment” if—

(a)before the relevant time, a surchargeable unauthorised member payment was made by a relevant pension scheme to, or in respect of, a specified individual,

(b)the individual is liable to the unauthorised payments surcharge in respect of that payment and has paid an amount in respect of that liability, and

(c)the amount paid, by virtue of the operation of a relevant rectification provision, exceeds the amount of that liability.

Repayments: procedure

38.—(1) A repayment application must be made to HMRC.

(2) A repayment application may be made only at the same time that, or after the time that, specified information is provided in relation to a specified individual.

(3) Where regulation 32(1) (specified information: due date for information) applies to a specified individual, a repayment application must be made by or in respect of that individual on or before 31st January 2029.

(4) Where regulation 32(6) applies to a specified individual, a repayment application must be made by or in respect of that individual on or before 31st January 2031.

(5) A repayment application must contain the following information—

(a)the information in items 1, 2 and 3 of Column 1 of the Table to the Schedule as applicable to the specified individual,

(b)the type of pension tax charge (“the charge”), the amount of the charge paid, and the date on which it was paid,

(c)the relevant tax year to which the charge relates,

(d)the amount of the overpayment, and

(e)the account details to which any repayment is to be made.

(6) An repayment application must be accompanied by—

(a)a declaration that the application is made by, or in respect of, a specified individual,

(b)a declaration as to the accuracy of the information contained in the application, and

(c)a declaration that the applicant understands the consequences of providing false information.

(7) Within the period of 90 days from the date on which a repayment application is received, an officer of HMRC must notify the applicant in writing whether their application is—

(a)granted, or

(b)refused, either wholly or to the extent that it is excessive.

(8) An appeal may be brought against a decision made under paragraph (7)(b) as if it were a conclusion stated in a closure notice under paragraph 7 of Schedule 1A to TMA 1970(2).