Regulation 222 Reduction of benefits where annual allowance charge paid by scheme manager

United Kingdom

(1)

This regulation applies where—

F1(a)

a member gives a valid notice to the scheme manager—

(i)

of joint and several liability to an annual allowance charge under section 237B of the FA 2004, or

(ii)

of liability to an annual allowance charge in accordance with regulation 222A; and

(b)

the scheme manager satisfies the liability specified in the notice.

(2)

The amount or value of the benefits payable to or in respect of the member for the tax year to which the notice relates must be reduced by the scheme manager in accordance with paragraph (3).

(3)

Subject to paragraph (4), the amount or value of the reduction of benefits—

(a)

must fully reflect the amount paid by the scheme manager; and

F2(aa)

in the case to which paragraph (1)(a)(ii) applies, where the liability has arisen in relation to more than one police pension scheme, must be proportionate to the part of that liability which relates to this scheme; and

(b)

must be consistent with normal actuarial practice.

(4)

Benefits may only be reduced under this regulation to the extent that the reduction would not result in the loss of any part of a guaranteed minimum pension to which a person is entitled under sections 14 (earner's guaranteed minimum) or 17 (minimum pension for surviving spouses and civil partners) of PSA 1993.

(5)

In this regulation—

“annual allowance charge” has the meaning given in section 227 (annual allowance charge) of FA 2004; and
“tax year” means a period of one year which is the period of assessment for income tax purposes.

Annotations

Textual amendments

F1: Reg. 222(1)(a) substituted (with effect in accordance with reg. 1(2)(d) of the amending S.I.) by The Police and Firefighters Pensions (Amendment) Regulations 2018 (S.I. 2018/997), regs. 1(2)(d), 37(1)(a)
F2: Reg. 222(3)(aa) inserted (with effect in accordance with reg. 1(2)(d) of the amending S.I.) by The Police and Firefighters Pensions (Amendment) Regulations 2018 (S.I. 2018/997), regs. 1(2)(d), 37(1)(b)