Explanatory note

These Regulations amend the Registered Pension Schemes (Provision of Information) Regulations 2006 (S.I. 2006/567) (“the Principal Regulations”) which concern the provision of information by persons such as members and scheme administrators of registered pension schemes.

The amendments made by regulations 3, 4(2) and 5 are consequential on the amendments to Part 4 of the Finance Act 2004 (c. 12) made by sections 48 and 49 of and Schedule 22 to the Finance Act 2013 (c. 29) which reduce the pensions lifetime allowance from £1,500,000 to £1,250,000, and the annual allowance from £50,000 to £40,000, with effect from tax year 2014-15.

Transitional protection (“fixed protection 2014”) is provided for individuals who think they are likely to exceed the reduced lifetime allowance when they become entitled to their pension benefits and who would otherwise face a lifetime allowance charge on the excess. Individuals must apply for fixed protection 2014 before 6 April 2014.

Regulations 4(3), 4(4) and 6 make further changes to the Principal Regulations.

Regulation 1 states when these Regulations come into force and specifies the dates from which the various amendments take effect.

Regulation 1(4) provides that new entry 22, inserted by regulation 4(4), applies to pension savings statements relating to pension input periods that end in tax year 2013-14 and subsequent years. Power to make legislation with retrospective effect is contained in section 282(A1) of the Finance Act 2004, which allows regulations made under Part 4 of that Act (including under section 251) to include provision having effect in relation to times before they are made if that provision does not increase any person’s liability to tax.

Regulation 3 inserts a definition of fixed protection 2014 into the Principal Regulations.

Regulation 4(2) adds references to fixed protection 2014 in entry 6 in the table appended to regulation 3(1) of the Principal Regulations.

Regulation 4(3) amends entry 9 in that table to require the scheme administrator to provide HM Revenue and Customs (“HMRC”) with additional information where there is a “recognised transfer” to a qualifying recognised overseas pension scheme (QROPS).

Regulation 4(4) inserts a new entry 22 into that table to require the scheme administrator to provide HMRC with additional information when a scheme administrator is required to provide a member with a pensions savings statement under regulation 14A(1) of the Principal Regulations because the annual allowance for the relevant tax year has been exceeded in that scheme.

Regulation 5 amends regulation 11 of the Principal Regulations so that if a member of a registered pension scheme intends to rely on fixed protection 2014, the member must give to the scheme administrator the reference number issued by HMRC under the Registered Pension Schemes and Relieved Non-UK Pension Schemes (Lifetime Allowance Transitional Protection) (Notification) Regulations 2013 (S.I. 2013/1741).

Regulation 6 amends regulation 11BA of the Principal Regulations to require the member of a registered pension scheme to give additional information to the scheme administrator when the member makes a request for a recognised transfer.

A Tax Information and Impact Note covering the lifetime allowance was published on 11 December 2012 and updated on 20 March 2013 and is available on the HMRC website at http://www.hmrc.gov.uk/thelibrary/tiins.htm. It remains an accurate summary of the lifetime allowance impacts that apply to this instrument.

A Tax Information and Impact Note covering regulation 4(4) was published on 17 May 2013 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 that regulation.

A Tax Information and Impact Note covering regulations 4(3) and 6 was published on 24 May 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 those regulations.