OpenLegislation

Section 76 Excess assets on winding up.I1I2C1C2C3C4

England, Wales and Scotland

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

(1)

This section applies to a trust scheme in any circumstances if—

(a)

F1it is a registered pension scheme under section 153 of the Finance Act 2004,

(b)

the scheme is being wound up, and

(c)

in those circumstances power is conferred on the employer or the trustees to distribute assets to the employer on a winding up.

(2)

The power referred to in subsection (1)(c) cannot be exercised unless the requirements of subsections (3) and (in prescribed circumstances) (4), and any prescribed requirements, are satisfied.

(3)

The requirements of this subsection are that—

(a)

the liabilities of the scheme have been fully discharged,

(b)

where there is any power under the scheme, after the discharge of those liabilities, to distribute assets to any person other than the employer, the power has been exercised or a decision has been made not to exercise it,

(c)

F2... and

(d)

notice has been given in accordance with prescribed requirements to the members of the scheme of the proposal to exercise the power.

(4)

The requirements of this subsection are that the Authority are of the opinion that—

(a)

any requirements prescribed by virtue of subsection (2) are satisfied, and

(b)

the requirements of subsection (3) are satisfied.

(5)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6)

If, where this section applies to any trust scheme, the trustees purport to exercise the power referred to in subsection (1)(c) without complying with the requirements of this section, F4section 10 applies to any of them who have failed to take all such steps as are reasonable to secure compliance.

(7)

If, where this section applies to any trust scheme, any person other than the trustees purports to exercise the power referred to in subsection (1)(c) without complying with the requirements of this section, section 10 applies to him.

(8)

F5Regulations may provide that this section does not apply, or applies with prescribed modifications, in prescribed circumstances or to schemes of a prescribed description.

Annotations

Textual amendments

F1

S. 76(1)(a) substituted (6.4.2006) by The Taxation of Pension Schemes (Consequential Amendments) Order 2006 (S.I. 2006/745), arts. 1, 10(5)

F2

S. 76(3)(c) repealed (6.4.2006) by Pensions Act 2004 (c. 35), s. 322(1), Sch. 12 para. 62(a), Sch. 13; S.I. 2006/560, art. 2(3), Sch. Pt. 3

F3

S. 76(5) repealed (6.4.2006) by Pensions Act 2004 (c. 35), s. 322(1), Sch. 12 para. 62(b), Sch. 13; S.I. 2006/560, art. 2(3), Sch. Pt. 3

F4

Words in s. 76(6) substituted (6.4.2006) by Pensions Act 2004 (c. 35), s. 322(1), Sch. 12 para. 62(c); S.I. 2005/3331, art. 2(6), Sch. Pt. 6

F5

S. 76(8) substituted (29.4.2026 for specified purposes) by Pension Schemes Act 2026 (c. 22), ss. 10(6), 133(1)(3)

Modifications

C1

S. 76 excluded (31.12.2000) by The Occupational Pension Schemes (Republic of Ireland Schemes Exemption) Regulations 2000 (S.I. 2000/3198), regs. 1(1), 2, Sch.

C2

S. 76 excluded (6.4.2006) by The Occupational Pension Schemes (Payments to Employer) Regulations 2006 (S.I. 2006/802), regs. 1, 12(1)

C3

S. 76 modified (6.4.2006) by The Occupational Pension Schemes (Payments to Employer) Regulations 2006 (S.I. 2006/802), regs. 1, 18(6)

C4

S. 76 excluded (24.7.2014) by The Pensions Act 2011 (Transitional, Consequential and Supplementary Provisions) Regulations 2014 (S.I. 2014/1711), regs. 1(1), 37(1)(b)

Commencement

I1

S. 76 in force at 6.4.1996 for specified purposes by S.I. 1996/778, art. 2(5)(a), Sch. Pt. V

I2

S. 76 in force at 6.4.1997 in so far as not already in force by S.I. 1997/664, art. 2(3), Sch. Pt. 3