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Section 242 De-registration chargeI1C1

United Kingdom

(1)

A charge to income tax, to be known as the de-registration charge, arises where the registration of a registered pension scheme is withdrawn.

(2)

The liability to the de-registration charge is a liability of the person who was, or each of the persons who were, the scheme administrator immediately before the registration was withdrawn.

(3)

That person, or each of those persons, is liable to the de-registration charge whether or not—

(a)

that person, and

(b)

any other person who is liable to the de-registration charge,

are resident F1... F2... in the United Kingdom.

(4)

The de-registration charge is a charge at the rate of 40% in respect of the aggregate of—

(a)

the amount of any sums held for the purposes of the pension scheme immediately before it ceased to be a registered pension scheme, and

(b)

the market value at that time of any assets held for the purposes of the pension scheme.

(5)

F3The Treasury may by order amend subsection (4) so as to vary the rate of the de-registration charge.

(6)

An order under subsection (5) may make provision for there to be different rates in different circumstances.

Annotations

Textual amendments

F1

Words in s. 242(3) omitted (with effect in accordance with Sch. 46 para. 132 of the amending Act) by virtue of Finance Act 2013 (c. 29), Sch. 46 para. 131

F2

Words in s. 242(3) omitted (for the tax year 2025-26 and subsequent tax years) by virtue of Finance Act 2025 (c. 8), s. 40(4), Sch. 9 para. 15(3)(i)

F3

S. 242(5)(6) inserted (with effect in accordance with Sch. 2 para. 25 of the amending Act) by Finance Act 2009 (c. 10), Sch. 2 para. 17

Modifications

C1

S. 242 excluded (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 24

Commencement

I1

Ss. 160-274, 281, Schs. 30-35 in force at 6.4.2006 but any power to make an order or regulations under those provisions may be exercised at any time after Royal Assent, see s. 284