The Pension Schemes (Miscellaneous Amendments) Order 2013
S.I. 2013/1114 · Made 8 May 2013
Income Tax
Made 8th May 2013
Laid before the House of Commons 9th May 2013
Coming into force 1st June 2013
The Treasury make the following Order in exercise of the powers conferred by sections 281(2A) and 282(A1) of the Finance Act 2004f1, section 122(4) and (5) of the Finance Act 2008f2 and section 96(5) and (6) of the Finance Act 2009f3:
Annotations to the whole text
Footnotes
- f1
-
2004 c. 12; section 281(2A) was inserted by the Finance Act 2006 (c. 25), section 161 and Schedule 23, paragraph 34(2); section 282(A1) was inserted by the Finance Act 2009 (c. 10), section 75(1).
- f2
- f3
Contents
- 1Citation and commencement
- 2Amendment of section 158 of the Finance Act 2004
- 3Amendment of paragraph 34 of Schedule 36 to the Finance Act 2004
- 4Amendments in relation to penalties
- 5Amendments in relation to penalties
- 6Amendments in relation to penalties
- 7Amendments in relation to penalties
- 8Amendments in relation to penalties
- Signature
- Explanatory note
1Citation and commencement
This Order may be cited as the Pension Schemes (Miscellaneous Amendments) Order 2013 and comes into force on 1st June 2013.
Article 2 has effect in relation to any information notices given under Part 1 of Schedule 36 to the Finance Act 2008f1 on or after the date on which this Order comes into force.
Article 3 has effect for the tax year 2012-13 and subsequent tax years.
2Amendment of section 158 of the Finance Act 2004
Section 158 of the Finance Act 2004 (grounds for de-registration) is amended as follows.
In subsection (1)(c) after “this Part” insert “or Part 1 of Schedule 36 to the Finance Act 2008”.
In subsection (5) after “this Part” insert “or Part 1 of Schedule 36 to the Finance Act 2008”.
3Amendment of paragraph 34 of Schedule 36 to the Finance Act 2004
In paragraph 34(2) (entitlement to lump sums exceeding 25% of uncrystallised rights) of Schedule 36 (transitional provisions) to the Finance Act 2004, in the sub-paragraph (7A) treated as substitutedf1—
omit the “and” at the end of the definition of “AC”; and
at the end of the definition of “VUR” insert—
“, and
CSLA is the current standard lifetime allowancef2.”
4Amendments in relation to penalties
The following amendments are made in consequence of Schedule 24 to the Finance Act 2007f1 and Schedule 40 to the Finance Act 2008.
5Amendments in relation to penalties
Omit section 260(6) and (7) of the Finance Act 2004 (accounting return)f1.
6Amendments in relation to penalties
The Pensions Benefits (Insurance Company Liable as Scheme Administrator) Regulations 2006f1 are amended as follows.
In regulation 2, for paragraph (4) substitute—
“(4)The insurance company is liable to the penalties under—
(a)Schedule 24 to the Finance Act 2007 (penalties for errors); and
(b)Schedule 55 to the Finance Act 2009 (penalty for failure to make returns)
if it fails to comply with the obligations imposed by section 254(1) to (7) as applied to it by virtue of paragraphs (2) and (3).”
7Amendments in relation to penalties
The Registered Pension Schemes (Splitting of Schemes) Regulations 2006f1 are amended as follows.
In the Table in Part 1 of Schedule 3, omit the entry relating to section 260(6).
In Part 1A of Schedule 3 (Other Legislation)—
omit “Schedule 55 to the Finance Act 2009 (penalty for failure to make returns)”; and
insert—
“
Statutory Reference
Subject-matter
Schedule 24 to the Finance Act 2007 Penalty for carelessly or deliberately making an incorrect return under section 254 of the Finance Act 2004 Schedule 55 to the Finance Act 2009 Penalty for failure to make returns ”
8Amendments in relation to penalties
The Registered Pension Schemes and Overseas Pension Schemes (Electronic Communication of Returns and Information) Regulations 2006f1 are amended as follows.
In Schedule 2 (information which may be supplied either to or by Revenue and Customs by an approved method of electronic communications), in the entry which begins “a notice of appeal against the imposition of a penalty”—
omit “(d) section 260 (fraudulently or negligently making an incorrect return)”; and
after entry (j) insert—
“(ja)Schedule 24 to the Finance Act 2007 (penalties for errors) in respect of an error in a return under section 254 of the Finance Act 2004;”
Signature
Mark Lancaster
Desmond Swayne
Two of the Lords Commissioners of Her Majesty’s Treasury
8th May 2013
Explanatory note
(This note is not part of the Order)
This Order makes three distinct changes to legislation relating to pension schemes.
Article 2 makes provision for the first change. It amends the Finance Act 2004 (“FA 2004”) to give Her Majesty’s Revenue and Customsf1 (“HMRC”) the power to withdraw the registration of a pension scheme where the scheme administrator has failed to provide information required by HMRC under Part 1 of Schedule 36 to the Finance Act 2008 (“FA 2008”).
Schedule 36 to FA 2008 contains the information and inspection powers available to HMRC. Paragraphs 34B and 34C contain specific provisions in respect of information notices relating to pensions matters. Upon those paragraphs entering into force on 1 April 2010, the provisions relating to pension scheme information notices in Part 4 of FA 2004 were repealedf2. As a consequence, the power to withdraw the registration of a pension scheme on the grounds of failing to provide required information is updated to include a failure to comply with an information notice made under Part 1 of Schedule 36 to FA 2008.
Article 3 makes provision for the second change. It amends FA 2004 in consequence of amendments made to it by the Finance Act 2011 (“FA 2011”).
Schedule 36 to FA 2004 contains modifications to Schedule 29 to FA 2004 which determine how the permitted maximum for a scheme specific lump sum is calculated. Paragraphs 8 and 11 of Schedule 18 to FA 2011 amended these modifications to ensure that the permitted maximum was not reduced when the lifetime allowance was reduced. Those amendments deleted the definition of CSLA from the modifications even though CSLA is still used in the calculation of the permitted maximum. Article 3 re-establishes the definition of CSLA.
Article 1(3) provides that Article 3 has retrospective effect from 6 April 2012 (when the amendments made by FA 2011 came into force (Schedule 18, paragraph 13)). Section 282(A1) of FA 2004 provides that orders made under Part 4 of that Act may include provision having effect in relation to times before the order was made if that provision does not increase any person’s liability to tax.
Articles 4 to 8 make provision for the third change. They make amendments in consequence of Schedule 24 to the Finance Act 2007 (“FA 2007”) and Schedule 40 to FA 2008.
As a result of the introduction of Schedule 24 to FA 2007 and Schedule 40 to FA 2008, the penalty in section 260(6) of FA 2004 is redundant. Article 5 repeals section 260(6) and the connected provision in section 260(7) of FA 2004. Articles 6 to 8 make consequential changes to secondary legislation. As a consequence of the amendments in respect of section 260 of FA 2004 provided for by Articles 6 and 7, it was also incidentally necessary to remove and re-insert references to Schedule 55 to FA 2009 in the secondary legislation.
A Tax Information and Impact Note covering the change provided for by Article 3 was published on 9 December 2010 alongside the draft legislation for Finance Bill 2011 which became Schedule 18 to FA 2011 and is available on the HMRC website at http://www.hmrc.gov.uk/thelibrary/tiins.htm. It remains an accurate summary of the impacts that apply to Article 3.
A Tax Information and Impact Note has not been prepared for the remaining Articles in the Instrument as they contain no substantive changes to tax policy.