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The Registered Pension Schemes ( Enhanced Allowances Transitional Protection) Regulations 2011

S.I. 2011/1752 · Made 20 July 2011 · Extends to United Kingdom

Up to date with all changes known to legislation.gov.uk, revised to 6 April 2024.

Income Tax

Made 20th July 2011

Laid before the House of Commons 21st July 2011

Coming into force 11th August 2011

The Commissioners for Her Majesty’s Revenue and Customs make these Regulations in exercise of the powers conferred on them by paragraph 14(2) and (15) of Schedule 18 to the Finance Act 2011f1 and section 251(1) of the Finance Act 2004f2 and now exercisable by themf3.C1

Annotations to the whole text

Textual amendments

F1

Words in Regulation Title substituted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 96(2), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

Modifications

C1

Regulations continued (17.7.2013) by Finance Act 2013 (c. 29), s. 47(5)

Footnotes

f1

2011 c. 11.

f2

2004 c. 12. Subsection (2) of section 251 sets out the matters referred to in subsection (1)(a) of that section and subsection (6) defines ‘prescribed’ for the purposes of section 251 as meaning prescribed by regulations.

f3

The functions of the Commissioners for Inland Revenue were transferred to the Commissioners for Her Majesty’s Revenue and Customs by section 5(1) of the Commissioners for Revenue and Customs Act 2005 (c. 11). Section 50(1) of that Act provides that insofar as it is appropriate in consequence of section 5, a reference in an enactment, however expressed, to the Commissioners of Inland Revenue is to be treated as a reference to the Commissioners for Her Majesty’s Revenue and Customs.

Contents

  1. 1Citation, commencement and interpretation
  2. 2Citation, commencement and interpretation
  3. 3Reliance on paragraph 14
  4. 4The paragraph 14 notice
  5. 5Issue of certificate by Her Majesty’s Revenue and Customs
  6. 6Refusal by Her Majesty’s Revenue and Customs to accept notice
  7. 7Appeal against refusal to accept notice
  8. 8Incorrect information given in, or in connection with, the paragraph 14 notice
  9. 9Requirement to inform Her Majesty’s Revenue and Customs of a paragraph 14(4) event
  10. 10Replacement of a certificate by Her Majesty’s Revenue and Customs
  11. 11Revocation of a certificate by Her Majesty’s Revenue and Customs
  12. 12Appeal against revocation or replacement of a certificate
  13. 13Preservation of documents
  14. Signature
  15. Explanatory note

1Citation, commencement and interpretationI1

These Regulations may be cited as the Registered Pension Schemes ( F1Enhanced Allowances Transitional Protection) Regulations 2011 and shall come into force on 11th August 2011.

2Citation, commencement and interpretationI1

In these Regulations—

  • “paragraph 14” means paragraph 14 of Schedule 18 to the Finance Act 2011;

  • “paragraph 14(4) event” means an event described in sub-paragraph (4) of paragraph 14;

  • “paragraph 14 notice” means a notice of an intention to rely on paragraph 14; and

  • “tribunal” means the First-tier Tribunal or, where determined in accordance with the Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009f1, the Upper Tribunal.

3Reliance on paragraph 14I1

(1)

Subject to paragraph (2), an individual may rely on paragraph 14 if—

(a)

the individual has given a paragraph 14 notice to Her Majesty’s Revenue and Customs, and

(b)

Her Majesty’s Revenue and Customs have accepted that notice by issuing a certificate to the individual.

(2)

An individual may not rely on paragraph 14 if—

(a)

Her Majesty’s Revenue and Customs have refused to accept a paragraph 14 notice in accordance with regulation 6,

(b)

Her Majesty’s Revenue and Customs have revoked the certificate in accordance with regulation 11, or

(c)

a paragraph 14(4) event has occurred.

4The paragraph 14 noticeI1

(1)

A paragraph 14 notice must include the following information—

(a)

the title, full name, address (including post code, if applicable) and date of birth of the individual submitting the paragraph 14 notice,

(b)

the national insurance number of the individual or, where the individual does not qualify for a national insurance number, the reasons for this,

(c)

a declaration that paragraph 7 of Schedule 36 to the Finance Act 2004 (primary protection) does not F1apply in the case of the individual, and

(d)

a declaration that paragraph 12 of that Schedule (enhanced protection)f1 will not apply in relation to the individual on and after 6th April 2012.

(2)

A paragraph 14 notice must be—

(a)

in a form prescribed by Her Majesty’s Revenue and Customs, and

F2(b)

received by Her Majesty’s Revenue and Customs on or before the following dates—

(i)

if it relates to an individual described in sub-paragraph (1) of paragraph 14, 5 April 2012; or

(ii)

if it relates to an individual described in sub-paragraph (1A) of paragraph 14, 5 April 2014.

(3)

The individual must sign and date the paragraph 14 notice.

5Issue of certificate by Her Majesty’s Revenue and CustomsI1

(1)

If Her Majesty’s Revenue and Customs accept the paragraph 14 notice, they must issue a certificate to the individual.

(2)

The certificate must have a unique reference number.

6Refusal by Her Majesty’s Revenue and Customs to accept noticeI1

(1)

Her Majesty’s Revenue and Customs may refuse to accept the paragraph 14 notice if it does not satisfy the requirements in regulation 4.

(2)

If Her Majesty’s Revenue and Customs refuse to accept the paragraph 14 notice the individual may require that Her Majesty’s Revenue and Customs provide reasons for the refusal.

7Appeal against refusal to accept noticeI1

(1)

The individual may appeal against a refusal by Her Majesty’s Revenue and Customs to accept the paragraph 14 notice.

(2)

The notice of appeal must be given to Her Majesty’s Revenue and Customs before the end of the period of 30 days beginning with the day on which the refusal to accept the paragraph 14 notice was given.

(3)

Where an appeal under this regulation is notified to the tribunal, the tribunal must determine whether Her Majesty’s Revenue and Customs were entitled to take the view that the notice did not satisfy the requirements in regulation 4.

(4)

If the tribunal allows the appeal, the tribunal may direct Her Majesty’s Revenue and Customs to accept the paragraph 14 notice and issue a certificate to the individual.

8Incorrect information given in, or in connection with, the paragraph 14 noticeI1

If the individual realises that any information given in the paragraph 14 notice or given to Her Majesty’s Revenue and Customs in connection with that notice was incorrect or has become incorrect, the individual must provide Her Majesty’s Revenue and Customs with the correct information without undue delay.

9Requirement to inform Her Majesty’s Revenue and Customs of a paragraph 14(4) eventI1

Where Her Majesty’s Revenue and Customs have issued a certificate the individual must—

(a)

inform Her Majesty’s Revenue and Customs when a paragraph 14(4) event occurs, and

(b)

provide that information before the end of the period of 90 days beginning with the day on which the event occurred.

10Replacement of a certificate by Her Majesty’s Revenue and CustomsI1

(1)

Her Majesty’s Revenue and Customs may issue a certificate, replacing the previous certificate, if they have reason to believe that information given in, or in connection with, the paragraph 14 notice was incorrect or has become incorrect.

(2)

A certificate issued in accordance with regulation 10(1) must have a unique reference number.

11Revocation of a certificate by Her Majesty’s Revenue and CustomsI1

Her Majesty’s Revenue and Customs may revoke a certificate if they—

(a)

have reason to believe that a paragraph 14(4) event has occurred,

(b)

have reason to believe that any of the conditions in sub-paragraph (1) of paragraph 14 have not been met, or

(c)

have given notice to the individual under paragraph 1 of Schedule 36 to the Finance Act 2008f1 in connection with paragraph 14 and the individual does not reply to that notice within the time specified in the notice.

12Appeal against revocation or replacement of a certificateI1

(1)

The individual may require Her Majesty’s Revenue and Customs to provide reasons for revoking or replacing the certificate.

(2)

Paragraphs (1) and (2) of regulation 7 apply to a decision to revoke or replace the certificate as they apply to the refusal to accept the paragraph 14 notice.

(3)

Where an appeal under this regulation is notified to the tribunal, the tribunal must determine whether Her Majesty’s Revenue and Customs replaced or revoked the certificate in accordance with regulations 10(1) or 11.

(4)

If the tribunal allows the appeal, the tribunal may direct Her Majesty’s Revenue and Customs to issue a certificate to the individual.

13Preservation of documentsI1

(1)

Where Her Majesty’s Revenue and Customs have issued a certificate the individual must preserve the certificate until no further F1relevant benefit crystallisation event within the meaning of section 637S of ITEPA 2003 can occur F2... in relation to the individual.

(2)

The requirement to preserve the certificate ceases where the certificate has been revoked.

Signature

Melanie Dawes

Dave Hartnett

Two of the Commissioners for Her Majesty’s Revenue and Customs

20th July 2011

Explanatory note

(This note is not part of the Regulations)

Sections 214 to 226 of the Finance Act 2004 make provision for the application of the lifetime allowance charge. Schedule 18 to the Finance Act 2011 (‘Schedule 18’) has reduced the level of the lifetime allowance, which applies to determine whether the lifetime allowance charge is applicable, to £1,500,000 from 2012-13 onwards. Schedule 18 introduces transitional provisions which provide protection from the lifetime allowance charge for those who may already have built up pension savings on the expectation that the lifetime allowance would remain at the current level of £1,800,000. These Regulations provide how individuals may give notice of whether they intend to rely on that transitional protection and make provision for supplementary and incidental matters.

Regulations 3 and 4 make provision about the notice which is required should an individual intend to rely on the transitional protection in Schedule 18. If Her Majesty’s Revenue and Customs (HMRC) accept a notice they must issue a certificate (regulation 5). Regulation 6 provides the circumstances in which HMRC may refuse to accept a notice and regulation 7 sets out how the individual may appeal against that decision. Regulations 10, 11 and 12 prescribe the circumstances in which HMRC may revoke or replace a certificate, following a previous acceptance of the notice, as well as provisions relating to appealing such a revocation or replacement.

Regulations 8, 9 and 13 deal with matters such as preservation of documents, requirements that individuals inform HMRC if incorrect information has been given in a notice or where an event occurs whereby they are no longer entitled to rely on the transitional protection.

A Tax Information and Impact Note covering this instrument was published on 9 December 2010 alongside draft legislation for the Finance (No. 3) Bill 2011 concerning the restriction of pensions tax relief. This was updated on 3 March 2011 to reflect further decisions relating to the restriction of pensions tax relief 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 this instrument.