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Regulation 17 Payments to insurance companies from drawdown pension fundsF20I1

United Kingdom

(1)

This regulation applies if a registered pension scheme has provided an insurance company with sums or assets from F1a drawdown pension fund F2or flexi-access drawdown fund, to secure the payment of—

(a)

a scheme pension, or

(b)

a lifetime annuity.

(2)

If the sums or assets provided comprise part of the member’s F3drawdown pension fund F4or of the member's flexi-access drawdown fund, the scheme administrator shall provide the insurance company, within 3 months of the purchase of the pension or annuity, with a statement of the F5amount of the member’s lump sum allowance, and the amount of the member’s lump sum and death benefit allowance, expended by the member becoming entitled to the scheme pension or the lifetime annuity.

(3)

The insurance company shall provide to each pensioner or annuitant, at least once in each tax year, a statement of the F6amount of the member’s lump sum allowance, and the amount of the member’s lump sum and death benefit allowance, expended at the date of the statement, in respect of that pension or annuity.

  • But no statement is required if the F7amount expended is nil.

(4)

If the sums or assets provided comprise the whole of the member’s F8drawdown pension fund F9or of the member's flexi-access drawdown fund, the scheme administrator shall provide the insurance company, within 3 months of the purchase of the pension or annuity, with a statement containing the information in paragraph (5).

(5)

The information is—

(a)

the sum of the F10amounts of the member’s lump sum allowance, and the sum of the amounts of the member’s lump sum and death benefit allowance, expended by—

(i)

F11relevant benefit crystallisation events in respect of the scheme referred to in paragraph (4) (“A”), to the extent that the sums and assets subject to those events have not been the subject of a transfer to another registered scheme; and

(ii)

where A has received (whether directly or indirectly) a transfer in respect of that member, any F12relevant benefit crystallisation event prior to the transfer in connection with the sums and assets represented by the transfer and sums and assets which were replaced by the sums and assets mentioned in paragraph (i), less

(b)

the sum of the F13amounts of the member’s lump sum allowance, and the sum of the amounts of the member’s lump sum and death benefit allowance, expended by F14relevant benefit crystallisation events—

(i)

which have been the subject of a statement under paragraph (2),

(ii)

which have been the subject of a statement under regulation 16(2), or

(iii)

which are referable to sums or assets which continue to be held by A.

(6)

The insurance company shall provide to the pensioner or annuitant, once in each tax year, a statement containing the information in paragraph (7).

(7)

The information is—

(a)

the sum of the F15amounts of the member’s lump sum allowance, and the sum of the amounts of the member’s lump sum and death benefit allowance, expended by—

(i)

F16relevant benefit crystallisation events in respect of the scheme referred to in paragraph (4) (“A”), to the extent that the sums and assets subject to those events have not been the subject of a transfer to another registered scheme;

(ii)

F17relevant benefit crystallisation events in respect of a scheme pension after the pensioner first became entitled to it; and

(iii)

where A has received (whether directly or indirectly) a transfer in respect of that member, any benefit crystallisation event prior to the transfer in connection with the sums and assets represented by the transfer and sums and assets which were replaced by the sums and assets mentioned in paragraph (i), less

(b)

the sum of the F18amounts of the member’s lump sum allowance, and the sum of the amounts of the member’s lump sum and death benefit allowance, expended by benefit crystallisation events—

(i)

which have been the subject of a statement under paragraph (2),

(ii)

which have been the subject of a statement under regulation 16(3), or

(iii)

which are referable to sums or assets which continue to be held by A.

F19(8)

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Annotations

Textual amendments

F1

Words in reg. 17(1) substituted (11.8.2011) by The Registered Pension Schemes (Provision of Information) (Amendment) (No.2) Regulations 2011 (S.I. 2011/1797), regs. 1(1), 12(a)

F2

Words in reg. 17(1) inserted (6.4.2015) by Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 35(5)(12) (with Sch. 1 para. 35(7)(11))

F3

Words in reg. 17(2) substituted (11.8.2011) by The Registered Pension Schemes (Provision of Information) (Amendment) (No.2) Regulations 2011 (S.I. 2011/1797), regs. 1(1), 12(b)

F4

Words in reg. 17(2) inserted (6.4.2015) by Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 35(6)(12) (with Sch. 1 para. 35(7)(11))

F5

Words in reg. 17(2) substituted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 121(2), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

F6

Words in reg. 17(3) substituted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 121(3)(a), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

F7

Words in reg. 17(3) substituted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 121(3)(b), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

F8

Words in reg. 17(4) substituted (11.8.2011) by The Registered Pension Schemes (Provision of Information) (Amendment) (No.2) Regulations 2011 (S.I. 2011/1797), regs. 1(1), 12(b)

F9

Words in reg. 17(4) inserted (6.4.2015) by Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 35(6)(12) (with Sch. 1 para. 35(7)(11))

F10

Words in reg. 17(5)(a) substituted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 121(4)(a)(i), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

F11

Words in reg. 17(5)(a)(i) substituted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 121(4)(a)(ii), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

F12

Words in reg. 17(5)(a)(ii) substituted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 121(4)(a)(iii), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

F13

Words in reg. 17(5)(b) substituted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 121(4)(b), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

F14

Words in reg. 17(5)(b) substituted (for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) Regulations 2024 (S.I. 2024/356), regs. 1(3), 9(9)(a)

F15

Words in reg. 17(7)(a) substituted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 121(5)(a)(i), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

F16

Words in reg. 17(7)(a)(i) substituted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 121(5)(a)(ii), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

F17

Words in reg. 17(7)(a)(ii) substituted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 121(5)(a)(iii), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

F18

Words in reg. 17(7)(b) substituted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 121(5)(b), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

F19

Reg. 17(8) omitted (for the tax year 2024-25 and subsequent tax years) by virtue of The Pensions (Abolition of Lifetime Allowance Charge etc) Regulations 2024 (S.I. 2024/356), regs. 1(3), 9(9)(b)

F20

Words in s. 17 heading substituted (11.8.2011) by The Registered Pension Schemes (Provision of Information) (Amendment) (No.2) Regulations 2011 (S.I. 2011/1797), regs. 1(1), 11

Commencement

I1

Reg. 17 in force at 6.4.2006, see reg. 1