The Registered Pension Schemes and Overseas Pension Schemes (Miscellaneous Amendments) Regulations 2013

These Regulations may be cited as the Registered Pension Schemes and Overseas Pension Schemes (Miscellaneous Amendments) Regulations 2013 and come into force on 14th October 2013.

In relation to qualifying recognised overseas pension schemes (QROPS) in existence immediately before 6th April 2012, regulations 7 and 8 have effect from that date.

The obligations imposed by regulation 3(1A) of the Pension Schemes (Information Requirements for Qualifying Overseas Pension Schemes, Qualifying Recognised Overseas Pension Schemes and Corresponding Relief) Regulations 2006^f1, substituted by regulation 11 of these Regulations, have effect in relation to five year periods ending on or after F16 April 2016.

Regulation 12—

Regulations 16 and 20, so far as relating to former QROPS, have effect only in relation a scheme that ceased to be a QROPS on or after 14th October 2013.

The Pension Schemes (Categories of Country and Requirements for Overseas Pension Schemes and Recognised Overseas Pension Schemes) Regulations 2006^f1 are amended as follows.

In regulation 3 (recognised overseas pension schemes: prescribed countries or territories and prescribed requirements), for paragraph (1) substitute—

“(1)

For the purposes of section 150(8) (recognised overseas pension schemes), in addition to satisfying the requirements set out in regulation 2 above, the pension scheme must—

(a)

except where it falls within paragraph (1A), satisfy the requirement in paragraph (6); and

(b)

satisfy one or more of the following requirements—

(i)

the requirement that the scheme must be established in a country or territory mentioned in paragraph (2),

(ii)

the requirement in paragraph (4),

(iii)

the requirement in paragraph (5).

(1A)

A pension scheme falls within this paragraph if it is an overseas public service pension scheme or if it falls within regulation 2(1)(b).

(1B)

A pension scheme is an “overseas public service pension scheme” for the purposes of paragraph (1A) if—

(a)

it is established in a country or territory outside the United Kingdom and is either—

(i)

so established by or under the law of that country or territory, or

(ii)

approved by the government of that country or territory; and

(b)

it is established for the purpose of providing benefits to individuals for or in respect of services rendered to that country or territory or any political subdivision or local authority thereof.”.

The Pension Schemes (Information Requirements for Qualifying Overseas Pension Schemes, Qualifying Recognised Overseas Pension Schemes and Corresponding Relief) Regulations 2006 are amended as follows.

In regulation 1(2) (interpretation), after the definition of “the Act” omit “and” and insert—

• ““HMRC” means the Commissioners for Her Majesty’s Revenue and Customs;

• “tax identification number” means—

  1. (a)

     if the person is resident for tax purposes in the United Kingdom, the unique taxpayer reference (UTR) allocated to that person, and

  2. (b)

     if the person is resident for tax purposes outside the United Kingdom, the unique taxpayer reference (UTR) allocated to that person or, if they do not have one, the reference number allocated to that person by the tax authority in the country or territory in which they are resident for tax purposes; and”.

In regulation 3, for the heading and paragraph (1) substitute—

“Information — QROPS and former QROPS

3.

(1)

For the purposes of section 169(4) (information to be provided by a QROPS or former QROPS), the scheme manager of a QROPS must provide to HMRC—

(a)

the name and address of the scheme, the date of its establishment and the name of the country or territory in which it is established;

(b)

confirmation whether or not the scheme is regulated in the country or territory in which it is established and, if so, the name and address of the regulator and the reference number, if any, allocated by that regulator;

(c)

the name and address of the tax authority for the scheme in the country or territory in which it is established and the reference number, if any, allocated by that tax authority;

(d)

confirmation of the basis on which the scheme satisfies the requirements imposed by regulations 2 and 3 of the Pension Schemes (Categories of Country and Requirements for Overseas Pension Schemes and Recognised Overseas Pension Schemes) Regulations 2006;

(e)

if a scheme satisfies regulation 2(2) of those Regulations solely because it fulfils the requirement in regulation 2(2)(c)(ii), or if a scheme satisfies regulation 3(1)(b) of those Regulations solely because it fulfils the requirement in regulation 3(4), evidence demonstrating that it fulfils the requirement set out in paragraph (ii) or (4), as the case may be;

(f)

the name, address, contact details and legal status of the scheme manager; and

(g)

any information or evidence required in writing, at any time, by HMRC relating to any of the matters referred to in sub-paragraphs (a) to (f).

No information is required to be provided under sub-paragraph (c) if the scheme was established by an organisation to which section 1 of the International Organisations Act 1968^f1 applies by virtue of an Order in Council under subsection (1) of that section.

(1A)

The information required under paragraph (1)(a) to (f) must be provided—

(a)

five years after the date of the HMRC letter advising the QROPS of the reference number that had been allocated to it, and

(b)

at the end of every succeeding period of five years.

This paragraph is subject to paragraph (1B).

(1B)

Where this paragraph applies to a QROPS, paragraph (1A) does not apply and the information required under paragraph (1)(a) to (f) must be provided on the dates notified to the QROPS by HMRC.

(1C)

Paragraph (1B) applies to a QROPS if—

(a)

the date of the HMRC letter advising the QROPS of the reference number that had been allocated to it was before 1st April 2010, and

(b)

less than fifteen years have passed since the date of that letter.

(1D)

Where paragraph (1A) or (1B) applies, the required information may be provided at any time during the six months prior to the end of each five year period or the notified dates, as the case may be.”.

For regulation 3(2) substitute—

“(2)

When a QROPS or former QROPS makes, or is treated under the relevant provisions as making, a payment in respect of a relevant member, the scheme manager of the QROPS or former QROPS must provide to HMRC—

(a)

the name, principal residential address, date of birth, contact details, the national insurance number or, if they do not have one, the tax identification number, if any, of the relevant member and if the relevant member has ceased to be resident for tax purposes in the United Kingdom, the date that residence ceased;

(b)

the name, address and contact details of the QROPS or former QROPS and of the scheme manager;

(c)

the date, amount and nature of the payment and if as a result of the payment no relevant transfer fund remains, a statement to that effect;

(d)

if the payment is made to a pension scheme, the name and address of the recipient and if the recipient is a registered pension scheme^f1 or a QROPS, the reference number allocated to that pension scheme by HMRC;

(e)

where the relevant member has died and the payment is made to an individual, the name, principal residential address, date of birth and the national insurance number or, if they do not have one, the tax identification number, if any, of that individual; and

(f)

where the relevant member has died and the payment is made to a person who is not an individual, the name and address of that person.

Here “the relevant provisions” means sections 172 to 174A^f2, paragraph 2A of Schedule 28^f3 and paragraph 3A of Schedule 29^f4.

This paragraph is subject to the qualifications in paragraphs (3) and (4).”.

In regulation 3(6)^f1 after “this regulation” insert “and regulation 3C”.

In regulation 3(7)^f1 for “and regulation 3B” substitute “, regulation 3B and regulation 3C”.

In the heading of regulation 3A^f1 (information— transfer of sums or assets) for “qualifying recognised overseas pension scheme” substitute—

“QROPS”.

For regulation 3A(1) substitute—

“(1)

For the purposes of section 169(4), where paragraph (2) applies the scheme manager of the QROPS (or former QROPS, if the scheme has ceased to be a QROPS) must provide to HMRC such of the information specified in paragraph (3) as may be required in writing by an officer of Revenue and Customs.”.

In regulation 3A(2) for “qualifying recognised overseas pension scheme”, in each place, substitute “QROPS”.

In the heading of regulation 3B^f1 (information—cessation) for “qualifying recognised overseas pension scheme” substitute—

“QROPS”.

In regulation 3B—

For regulation 3C^f1 (information—changes, completion or correction), excluding the heading substitute—

“3C.

(1)

For the purposes of section 169(4), if at any time after a QROPS or former QROPS has provided HMRC with information in accordance with regulation 3, 3A or 3B it becomes apparent to the QROPS or former QROPS that—

(a)

there is a material change affecting that information; or

(b)

the information is incomplete or contains a material inaccuracy,

the scheme manager of the QROPS or former QROPS must provide to HMRC details of the change, the complete information or correction of the inaccuracy (“the relevant obligation”).

(2)

Where paragraph (1) applies the details of the change, the complete information or correction of the inaccuracy must be provided—

(a)

within 30 days beginning with the day on which the change, lack of completeness or inaccuracy becomes apparent to the QROPS or former QROPS; or

(b)

by such other time as may be agreed between an officer of Revenue and Customs and the scheme manager.

(3)

No obligation arises under paragraph (1) in respect of a former QROPS if at the time the relevant obligation arises—

(a)

the following conditions are met—

(i)

more than ten years has elapsed beginning with the date on which the relevant transfer fund in respect of the relevant member came into existence; and

(ii)

the relevant member to whom the payment is made or treated as made is a person to whom the member payment provisions do not apply (see paragraph 2 of Schedule 34); or

(b)

there is no relevant transfer fund.”.

After regulation 4 insert—

“Application and modification of the penalty provisions in Part 7 of Schedule 36 to the Finance Act 2008

5.

(1)

Where the scheme manager of a former QROPS is required to provide information under regulation 3(2), 3A(1) or 3C(1), Part 7 of Schedule 36 to the Finance Act 2008^f1 (penalties) is to apply, with the modifications specified in paragraph (2), to the scheme manager as if—

(a)

that information had been required to be provided by an information notice^f2 given to the scheme manager under that Schedule; and

(b)

the information notice had specified that the information had to be provided by the time required under regulation 3, 3A or 3C, as the case may be.

(2)

The modifications of Part 7 of Schedule 36 to the Finance Act 2008 mentioned in paragraph (1) are as follows—

(a)

in paragraph 39^f3, sub-paragraphs (1)(b) and (3) are omitted;

(b)

in paragraph 40^f4, “or obstruction” is omitted wherever it appears;

(c)

in paragraph 40A(4)(b)^f5, “take reasonable steps to” is omitted and “within 30 days beginning with the date on which the inaccuracy becomes apparent” is inserted at the end;

(d)

paragraphs 42 and 43 are omitted;

(e)

in paragraph 45^f6, in sub-paragraph (1) “or the obstruction of an officer of Revenue and Customs” is omitted, in sub-paragraph (2)(b) “or obstruction” is omitted and in sub-paragraph (2)(c) “or obstruction” and “, or the obstruction stops,” are omitted;

(f)

in paragraph 46^f7, in sub-paragraph (2) “, subject to sub-paragraph (3)” is omitted and sub-paragraph (3) is omitted;

(g)

in paragraph 49^f8, in sub-paragraph (1)(a) and (b) “90 days” is substituted for “30 days”;

(h)

in paragraph 49A^f9, in sub-paragraph (1)(a) “an information notice” is substituted for “a notice under paragraph 5” and sub-paragraph (6) is omitted;

(i)

paragraphs 50 and 51 are omitted.”.

The Registered Pension Schemes and Overseas Pension Schemes (Electronic Communication of Returns and Information) Regulations 2006^f1 are amended as follows.

In the penultimate paragraph of Schedule 2 (information which may be supplied electronically) for “and qualifying recognised overseas pension schemes under regulations 2 and 3” substitute “, QROPS and former QROPS under regulations 2 to 3C”.

The Registered Pension Schemes etc (Information) (Prescribed Descriptions of Persons) Regulations 2010^f1 are amended as follows.

After regulation 2 insert—

“Prescribed descriptions of persons: QROPS and former QROPS

2A.

(1)

In relation to a QROPS or former QROPS the description is any person who is, or at any time during the relevant period has been, the scheme manager.

(2)

For the purposes of paragraph (1) the relevant period has the meaning given in regulation 2(2), subject to the substitution of “tenth” for “sixth” in regulation 2(2)(b).”.

In regulation 3(1) (prescribed description of persons: annuities purchased with pension scheme assets) for “or a pre-2006 pension scheme” substitute “, a pre-2006 pension scheme, a QROPS or a former QROPS”.

(This note is not part of the Regulations)