Regulation 3 Refund of contributions

(1)

The qualifying amount of a rectification payment^f1 that falls within section 15(3)(b) of the Finance Act 2024 (refund of pension contributions)—

(a)

does not give rise to a liability to income tax, and

(b)

is to be treated as falling within section 164(1) of FA 2004 (authorised member payments)^f2.

(2)

In this regulation, the qualifying amount is—

(a)

the amount of the refund of pension contributions, less

(b)

the amount of any relief given in respect of those contributions in accordance with section 193 of FA 2004 (relief under net pay arrangements)^f3.

Annotations

f1: “Rectification payment” is defined in section 15(3) of FA 2024.
f2: The original section 164 was renumbered as section 164(1) by paragraph 1(2) of Schedule 29 to the Finance Act 2008. Section 164 was further amended by section 75(2)(a) of the Finance Act 2009 (c. 10), paragraph 85 of Schedule 1 to the Taxation of Pensions Act 2014, paragraph 3(1)(a) of Schedule 5 to the Finance Act 2016 (c. 24) and paragraph 16 of Schedule 9 to FA 2024.
f3: Section 193 was amended by paragraph 475 of Schedule 1 to the Income Tax Act 2007 (c. 3).