Article 10 Cases where certain charges under the Finance Act 2004 apply

After article 29 of the Principal Order insert—

“Payment on behalf of participants of lifetime allowance charge

29A

(1)

A participant or former participant may request the person who is the scheme administrator for the purposes of section 217 of the Finance Act 2004 (“the administrator”) to pay on his behalf any amount that is payable by way of the lifetime allowance charge under section 214 of the Finance Act 2004 when—

(a)

an event that is a benefit crystallisation event listed in the table in section 216(1) of the Finance Act 2004 occurs in relation to him, and

(b)

the participant or former participant and the administrator are jointly and severally liable to the charge in respect of the event.

(2)

Such a request may only be made by notice in writing given before the event occurs.

(3)

The administrator may only comply with such a request if the participant or former participant pays him the amount in question on or before the date on which the event occurs.

Reduction of benefits and transfer values where lifetime allowance charge payable

29B

(1)

This article applies if—

(a)

an event that is a benefit crystallisation event listed in the table in section 216(1) of the Finance Act 2004 (“the table”) occurs in relation to a participant or former participant,

(b)

the participant or former participant and the person who is the scheme administrator for the purposes of section 217 of the Finance Act 2004 (“the administrator”) are jointly and severally liable to the charge in respect of the event, and

(c)

no request has been duly made under article 29A in relation to the event or, if such a request has been made, the administrator is prevented from complying with it by paragraph (3) of that article.

(2)

Where this article applies—

(a)

the administrator must pay the tax payable on the event,

(b)

if the event is benefit crystallisation event 8 in the table (transfer to qualifying recognised overseas pension scheme), the amount or value of the sums or assets transferred must be reduced, and

(c)

in the case of any other event, the amount or value of the benefits payable to or in respect of the participant must be reduced.

(3)

The amount or value of the reduction must be determined by the Managers, having regard to the opinion of the Government Actuary, such that it fully reflects the amount of the tax paid under this article.

Deduction from payments of other tax due under the Finance Act 2004

29C

(1)

This article applies where—

(a)

a payment is made under article 18 and Schedule 6 of this Order that is a pension protection lump sum death benefit for the purposes of Part 4 of the Finance Act 2004 (see paragraph 14 of Schedule 29 to that Act), or

(b)

a repayment of contributions (including interest on contributions) is made under article 25 of this Order that is a short service refund lump sum for the purposes of Part 4 of that Act (see paragraph 5 of Schedule 29 to that Act).

(2)

Before making the payment the person who is the scheme administrator for the purposes of section 217 of that Act may deduct from it any tax due in respect of it under—

(a)

section 206 of that Act (the special lump sum death benefits charge), or

(b)

section 205 of that Act (short service refund lump sum charge).”.

Omit article 30 (deduction of tax from contributions).