Regulation 4 Amendment of regulation T2A

Regulation T2A (deduction of tax: further provisions)^f1 is amended as follows.

In paragraph (2), after “these Regulations” insert “, before 6th April 2024,”.

After paragraph (2A) insert—

“(2B)

Subject to paragraph (2C), if a person’s entitlement to a lump sum under these Regulations, on or after 6th April 2024, constitutes a relevant benefit crystallisation event for the purposes of section 637Q or section 637S of the Income Tax (Earnings and Pensions) Act 2003^f2, the scheme administrator shall determine—

(a)

where any tax is payable in respect of the benefit in accordance with section 204 of the 2004 Act and, if so,

(b)

the amount of tax, and

(c)

the person liable for that tax.

(2C)

The member’s lump sum in respect of which any tax is payable, as determined under paragraph (2B), shall be reduced by an amount that fully reflects the amount of tax paid by the scheme administrator.”.

In paragraph (7), after “these Regulations” insert “, before 6th April 2024,”.

After paragraph (7) insert—

“(7A)

Where a person is entitled to a lump sum under these Regulations, on or after 6th April 2024, whether or not he intends to rely on entitlement to transitional protection, or to enhanced protection, that person shall give to the scheme administrator such information as will enable the scheme administrator to determine—

(a)

whether any tax is payable in respect of the lump sum in accordance with section 204 of the 2004 Act and, if so,

(b)

the amount of tax, and

(c)

the person liable for that tax.”.

In paragraph (8)—

After paragraph (8) insert—

“(8ZA)

Where a person who is entitled to a lump sum under these Regulations, on or after 6th April 2024, intends to rely on entitlement to an enhanced allowance by virtue of the provisions listed in section 256(1) of the 2004 Act (enhanced allowance regulations), that person shall give to the scheme administrator—

(a)

the reference number issued by the Commissioners under the Registered Pension Schemes (Enhanced Lifetime Allowance) Regulations 2006^f3 in respect of that entitlement; and

(b)

the information referred to in paragraph (7A).”.

In paragraph (8A)^f4—

After paragraph (8A) insert—

“(8AA)

Where a person who is entitled to a lump sum under these Regulations, on or after 6th April 2024, intends to rely on entitlement to transitional protection in accordance with paragraph 14 of Schedule 18 to the 2011 Act or paragraph 1 of Schedule 22 to the Finance Act 2013, that person shall give to the scheme administrator—

(a)

the reference number issued by the Commissioners under The Registered Pension Schemes (Lifetime Allowance Transitional Protection) Regulations 2011^f5 or The Registered Pension Schemes and Relieved Non-UK Pension Schemes (Lifetime Allowance Transitional Protection) (Notification) Regulations 2013^f6 in respect of that entitlement; and

(b)

the information referred to in paragraph (7A).”.

In paragraph (8B)^f7—

After paragraph (8B) insert—

“(8C)

Where a person who is entitled to a lump sum under these Regulations, on or after 6th April 2024, intends to rely on entitlements to individual protection in accordance with paragraph 1 of the Schedule 6 of the Finance Act 2014^f8, that person shall give to the scheme administrator—

(a)

the reference number issued by the Commissioners under The Registered Pension Schemes and Relieved Non-UK Pension Schemes (Lifetime Allowance Transitional Protection) (Individual Protection 2014 Notification) Regulations 2014^f9 in respect of that entitlement, and

(b)

the information referred to in paragraph (7A).”.

In paragraph (9)—

In paragraph (10)—

After paragraph (10) insert—

“(10A)

Where a person who is entitled to a lump sum under these Regulations, on or after 6th April 2024, fails to provide all, or part of, the information referred to in paragraph (7A) or, as the case may be, paragraph (8ZA), (8AA) or (8C) within the time limits specified, the scheme administrator may deem that the person is liable for the tax payable in respect of the whole of the lump sum.”.