Explanatory note

These Regulations make provisions in relation to the making of assessments and related matters in connection with charges to tax under Part 4 of the Finance Act 2004 (c. 12) (“the Act”) in respect of pension schemes which are or have been registered under that Part of that Act.

Regulation 1 provides for citation and commencement.

Regulation 2 provides for interpretation.

Regulation 3 specifies the particulars required to be included in a return under section 254 in relation to certain types of charge.

Regulation 4 specifies the cases in which the Inland Revenue must issue an assessment.

Regulation 5 provides for interest on tax due under section 254 of the Act or assessed under these Regulations.

Regulation 6 provides for the scheme administrator to make an amended return in the event of an error in a return under section 254 of the Act.

Regulation 7 makes provisions in connection with adjustments, repayments and interest on tax overpaid.

Regulations 8 to 12 provide for the application with modifications of provisions of the Taxes Management Act 1970 (c. 9) (“TMA”) in relation to certain assessments made under these Regulations.

Regulation 8 modifies section 9(1A) of TMA to exclude the self-assessment provisions in relation to tax assessed where a charge arises under section 217(2) (lifetime allowance charge on receipt of a lump sum death benefit), section 272 (trustees etc. liable as scheme administrator) or section 273 (members liable as scheme administrator) of the Act.

Regulation 9 modifies section 29(1)(a) of TMA to permit an assessment where a loss of tax is discovered in relation to an unauthorised payment under section 208, a surchargeable unauthorised payment under section 209 or a lifetime allowance charge under section 217(2) of the Act.

Regulation 10 modifies section 34(1) of TMA to apply the ordinary six year time limit to assessments in relation to a charge in respect of an employer-financed retirement benefits scheme under section 394(2) of the Income Tax (Earnings and Pensions) Act 2003 (c. 1) (“ITEPA”).

Regulation 11 modifies section 36(1) of TMA to apply the extended time limit in cases of fraud or negligence to assessments in relation to a charge under section 394(2) of ITEPA.

Regulation 12 applies sections 34 and 36 of TMA to assessments under section 254 of the Act.

Regulation 13 modifies Schedule 18 to the Finance Act 1998 (c. 36) (company tax returns, assessments and related matters) to exclude the operation of that Schedule in relation to an assessment in respect of a charge under section 394(2) of ITEPA.

A regulatory impact assessment in respect of the provisions of Part 4 of the Finance Act 2004 and subordinate legislation under it was published by the Board of Inland Revenue on 8 April 2004, and is available on the Inland Revenue website at www.inlandrevenue.gov.uk/ria/simplifying-pensions.pdf or (for hard copies) by writing to the Ministerial Correspondence Unit, Capital and Savings 1st Floor Ferrers House, PO Box 38, Castle Meadow Road, Nottingham, NG2 1BB.