Explanatory note

These Regulations, which come into force on 28th December 1989, amend the Pension Scheme Surpluses (Valuation) Regulations 1987 (“the Principal Regulations”).

Regulation 1 provides for citation and commencement and regulation 2 contains definitions.

Regulation 3 amends regulation 2 of the Principal Regulations by inserting a definition of “simplified defined contribution scheme”.

Regulation 4 amends regulation 3 of the Principal Regulations which prescribes the schemes to which the provisions of Schedule 22 to the Income and Corporation Taxes Act 1988 (formerly Part II of Schedule 12 to the Finance Act 1986 (c. 41)) apply.

Regulation 5 amends regulation 7(1) of the Principal Regulations to secure that the requirements of regulation 7(1) of the Principal Regulations shall apply in relation to capital receipts as well as to income.

Regulation 6 amends regulation 10 of the Principal Regulations. Apart from a drafting amendment, the amendments secure that for the purposes of paragraph 7(10) of Schedule 22 to the Income and Corporation Taxes Act 1988 the “prescribed maximum” shall be 5 per cent. and that for the purposes of paragraph 7(1) of that Schedule the “prescribed percentage” shall be 5 per cent.