# The Registered Pension Schemes (Splitting of Schemes) Regulations 2006 S.I. 2006/569 · made 9 March 2006 These Regulations provide for certain registered pension schemes to be treated as if they were a number of separate registered pension schemes pursuant to section 274A of the Finance Act 2004 (c. 12) (“the 2004 Act”). Made under: Finance Act 2004 (Section 274A) PDFs: Printed copy https://openlegislation.uk/registered-pension-schemes-splitting-of-schemes-regulations-2006/pdf/uksi_20060569_en.pdf; Explanatory Memorandum https://openlegislation.uk/registered-pension-schemes-splitting-of-schemes-regulations-2006/pdf/uksiem_20060569_en.pdf ## Introductory text INCOME TAX Made 9th March 2006 Laid before the House of Commons 10th March 2006 Coming into force 6th April 2006 The Commissioners for Her Majesty’s Revenue and Customs, in exercise of the powers conferred by section 274A of the Finance Act 2004, and now exercisable by them make the following Regulations: ## 1 Citation, commencement and interpretation (1) These Regulations may be cited as the Registered Pension Schemes (Splitting of Schemes) Regulations 2006 and shall come into force on 6th April 2006. (2) In these Regulations— “group of employers” means two or more employers who are formally or informally linked to each other by reasons of common management, shareholding, staff or close business interests; “HMRC” means the Commissioners for Her Majesty’s Revenue and Customs; “split scheme” means a registered pension scheme that is being treated, in accordance with regulation 2, as having been split into two or more sub-schemes; “sub-scheme” means a scheme which forms part of a split scheme and which is being treated as a separate pension scheme under and for the purposes set out in these regulations; “split scheme administrator” means a scheme administrator of a split scheme; “sub-scheme administrator” means the scheme administrator of a sub-scheme appointed in accordance with the rules of the split scheme to be responsible for the discharge of the functions conferred or imposed on the sub-scheme administrator by or under these Regulations; “section” without more, means a section of the Finance Act 2004; “schedule” without more, means a schedule to the Finance Act 2004. ## 2 Description of schemes to be split (1) The following registered pension schemes shall be treated as split schemes for the purposes of these Regulations— (a) the registered pension schemes listed in Schedule 1; (b) a registered pension scheme which meets the conditions in paragraph (5); (c) a successor scheme to any of the above schemes. (2) A successor scheme is a registered pension scheme established to take over some or all of the rights and obligations of a split scheme. (3) The scheme administrator of a successor scheme shall notify HMRC of any sub-schemes in respect of which he is assuming responsibility immediately following registration of the successor scheme. The notification shall— (a) be in a form specified by HMRC, and; (b) contain any information reasonably required by HMRC. (4) Schedule 2 lists the schemes which, at the coming into force of these Regulations, are to be treated as sub-schemes of the split schemes referred to in sub-paragraph (1). (5) The conditions referred to in sub-paragraph (1)(b) are as follows. Condition A The pension scheme falls within Paragraph 1(1)(a) or (c) of Schedule 36 to the Finance Act 2004. Condition B The pension scheme provides benefits to or for the benefit of the employees of two or more employers. Condition C The rules of the pension scheme as at 28th February 2006 provided for the establishment of separate schemes for each of the participating employers or group of employers and for the administration of such schemes to be carried out by separate scheme administrators. (6) A successor sub-scheme is a scheme established to take over some or all of the rights and obligations of a sub-scheme. (7) The scheme administrator of a successor sub-scheme shall notify HMRC immediately following his assumption of liability of the successor sub-scheme. The notification shall— (a) be in a form specified by HMRC, and (b) contain any information reasonably required, including the name and address of the scheme administrator. ## 3 Responsibilities and liabilities of sub-scheme administrators (1) The sub-scheme administrator of a sub-scheme shall assume the liabilities and responsibilities set out in Schedule 3 to these Regulations in relation to that scheme. (2) In the provisions referred to in that Schedule any reference to the scheme administrator shall be read as a reference to the sub-scheme administrator. (3) The split scheme administrator shall cease to have responsibility or liability in relation to the matters referred to in paragraph (1) in respect of the sub-scheme. (4) The provisions of section 270(2) and (3) (meaning of “scheme administrator”) apply to the sub-scheme administrator and the references to the scheme administrator in those subsections shall be read as references to the sub-scheme administrator). (5) Section 272 (trustees etc. liable as scheme administrator) applies to sub-scheme administrators with the following modifications— (a) in subsection (1)“ for “registered pension scheme”; substitute “sub-scheme”; (b) in subsections (1)(a) to (c), (2)(a) and (b) for “scheme administrator” (in each place) substitute “sub-scheme administrator”; (c) in subsections (1)(a) to (c) and (2), (3) and (5) for “pension scheme” (in each place) substitute “sub-scheme”; (d) in subsection (2)— (i) in paragraph (a) after “by virtue of this Part” insert “as applied by regulation 3 of the Registered Pensions (Splitting of Schemes) Regulations 2006”; and (ii) in paragraph (b) after “by or under this Part.” insert “as applied by the Registered Pensions (Splitting of Schemes) Regulations 2006”; and (e) in subsection (4) for “pension scheme” substitute “sub-scheme”. (6) Section 273 (members liable as scheme administrator) applies to members of a sub-scheme with the following modifications— (a) in subsection (1) for “registered pension scheme” substitute “sub-scheme”; (b) in subsections (1)(a) and (b) for “pension scheme” substitute “sub-scheme”; (c) in subsection (1)(a) after “(trustees, etc.)” add “(as modified by regulation 3 of the Registered Pensions (Splitting of Schemes) Regulations 2006)”; (d) in subsection (1)(b) omit the words “or section 242 (de-registration charge)”; (e) in subsections (2) and (4) for “pension scheme” substitute “sub-scheme”; (f) in subsection (5)(a) for “the pension scheme” substitute “the split scheme”; (g) in subsections (5)(b) and (d) for “the pension scheme” substitute “the sub-scheme”; (h) in subsection (5)(c) after the words “that the pension scheme was” add “part of”; (i) in subsection (10) for “the pension scheme” substitute “the sub-scheme”. (7) Section 274(2) (supplementary) applies to sub-scheme administrators with the following modifications— (a) for “scheme administrator” substitute “sub-scheme administrator”; and (b) for “registered pension scheme” substitute “sub-scheme”. ## 4 Responsibilities and liabilities of sub-scheme administrators (1) Section 209(5) (unauthorised payments surcharge) shall be modified as follows. (a) in paragraph (b) delete “and”; (b) in paragraph (c) after “the scheme administrator” add “and”; (c) after paragraph (c) add— “(d) the sub-scheme administrator,”. ## 5 Responsibilities and liabilities of sub-scheme administrators (1) Paragraph 11 of Schedule 31 (insertion of chapter 15A into ITEPA 2003) shall be modified as follows. (2) After subsection (4) of the inserted section 636A insert— “(4A) In the case of a registered pension scheme which is a split scheme for the purposes of the Registered Pensions Schemes (Splitting of Schemes) Regulations 2006, subsections (3) and (4) shall have effect as if the references to the scheme administrator were to the sub-scheme administrator (within the meaning of those Regulations).”. (3) Paragraph 1 of Schedule 35 (consequential amendments to the Taxes Management Act 1970) shall be modified as follows. (a) in the substitution to section 9(1A) of the Taxes Management Act 1970, in sub-paragraph (a) delete “or”; and (b) after sub-paragraph (a) add— “(ab) is chargeable on the sub-scheme administrator of a sub-scheme under Part 4 of the Finance Act 2004 as modified by the Registered Pensions (Splitting of Schemes) Regulations 2006, or” (4) Paragraph 16 of Schedule 35 (consequential amendments to section 349B(3) of ICTA) shall be modified as follows. (5) After the substituted sub-paragraph (i) add— “(ia) the sub-scheme administrator of a sub-scheme which forms part of a split scheme pursuant to the Registered Pensions (Splitting of Schemes) Regulations 2006;” (6) Paragraph 33 of Schedule 35 (consequential amendments to section 824(9) of ICTA) shall be modified as follows. (7) After the insertion of the words “scheme administrators of registered pension schemes” add— “sub-scheme administrators of sub-schemes which form part of a split scheme pursuant to the Registered Pensions (Splitting of Schemes) Regulations 2006”. ## Signature David Varney Paul Gray Two of the Commissioners for Her Majesty’s Revenue and Customs 9th March 2006 ## Schedule 1 Schemes to be treated as split schemes pursuant to regulation 2(1)(a) Name of Scheme Enabling legislation Governing regulations Police Pension Scheme s 1-8 Police Pensions Act 1982 The Police Pensions Regulations 1987 (SI 1987 No.257) as amended Firefighters Pension Scheme s.26 Fire Services Act 1947 and s.34 Fire and Rescue Services Act 2004 The Firemen’s Pension Scheme Order 1992 SI 1992 No.129 as amended Local Government Pension Scheme s.7 and s.12 Superannuation Act 1972 The Local Government Pension Scheme Regulations 1997 SI 1997 No.1612 as amended Local Government Pension Scheme (Scotland) s.7 and s.12 Superannuation Act 1972 The Local Government Pension Scheme (Scotland) Regulations 1998 SI 1998 No.366 (S.14) as amended Electricity Supply Pension Scheme ## Schedule 2 Schemes to be treated as sub-schemes pursuant to regulation 2(4) Name of sub-scheme Split scheme to which it relates Metropolitan Police Authority Norfolk Police Authority North Yorkshire Police Authority North Wales Police Authority Northamptonshire Police Authority Northumbria Police Authority Nottinghamshire Police Authority South Wales Police Authority South Yorkshire Police Authority Staffordshire Police Authority Suffolk Police Authority Surrey Police Authority Sussex Police Thames Valley Police Authority Warwickshire Police Authority West Mercia Police Authority West Midlands Police Authority West Yorkshire Police Authority Wiltshire Police Authority Central Scotland Joint Police Board Dumfries & Galloway Police Authority Fife Police Authority Grampian Joint Police Board Lothian and Borders Police Board Northern Joint Police Board Strathclyde Joint Police Fire Board Tayside Joint Police Board Police Pension Scheme Avon Fire Authority Bedfordshire and Luton Combined Fire Authority Buckinghamshire and Milton Keynes Fire Authority Cambridgeshire and Peterborough Fire Authority Cheshire Fire Authority Cleveland Fire Authority Cornwall Fire Authority County Durham and Darlington Fire and Rescue Authority Cumbria Fire Authority Derbyshire Fire Authority Devon Fire Authority Dorset Fire Authority East Sussex Fire Authority Essex Fire Authority Gloucestershire Fire Authority Greater Manchester Fire and Civil Defence Authority Hampshire Fire and Rescue Authority Hereford and Worcester Combined Fire Authority Hertfordshire Fire Authority Humberside Fire Authority Isle of Wight Fire Authority Kent and Medway Towns Fire Authority Lancashire Combined Fire Authority Leicester, Leicestershire and Rutland Combined Fire Authority Lincolnshire Fire Authority London Fire and Emergency Planning Authority Merseyside Fire and Civil Defence Authority Mid and West Wales Fire Authority Norfolk Fire Authority North Wales Fire Authority North Yorkshire Fire and Rescue Authority Northamptonshire Fire Authority Northumberland Fire Authority Nottinghamshire and City of Nottingham Fire Authority Oxfordshire Fire Authority Royal Berkshire Fire Authority Shropshire and Wrekin Fire Authority Somerset Fire Authority South Wales Fire Authority South Yorkshire Fire and Civil Defence Authority Stoke on Trent and Staffordshire Fire Authority Suffolk Fire Authority Surrey Fire Authority Tyne & Wear Fire and Civil Defence Authority Warwickshire Fire Authority West Midlands Fire and Civil Defence Authority West Sussex Fire Authority West Yorkshire Fire and Civil Defence Authority Wiltshire and Swindon Fire Authority Dumfries & Galloway Fire and Rescue Authority Highland and Islands Fire Board Grampian Fire Board Lothian and Borders Fire Board Central Scotland Fire Board Fife Fire and Rescue Authority Strathclyde Fire Board Tayside Fire Board Firefighters Pension Scheme Bath & North East Somerset Council Bedfordshire County Council Buckinghamshire County Council Cambridgeshire County Council Carmarthenshire County Council Cheshire County Council City and County of Cardiff Council City and County of Swansea City of London City of Bradford Metropolitan District Council Cornwall County Council Cumbria County Council Derbyshire County Council Devon County Council Dorset County Council Durham County Council East Riding of Yorkshire Council East Sussex County Council Environment Agency Essex County Council Flintshire County Council Gloucestershire County Council Gwynedd Council Hampshire County Council Hertfordshire County Council Isle of Wight Council Kent County Council Lancashire County Council Leicestershire County Council Lincolnshire County Council London Borough of Barking and Dagenham London Borough of Barnet London Borough of Bexley London Borough of Brent London Borough of Bromley London Borough of Camden London Borough of Croydon London Borough of Ealing London Borough of Enfield London Borough of Greenwich London Borough of Hackney London Borough of Hammersmith and Fulham London Borough of Haringey London Borough of Harrow London Borough of Havering London Borough of Hillingdon London Borough of Hounslow London Borough of Islington London Borough of Lambeth London Borough of Lewisham London Borough of Merton London Borough of Newham London Borough of Redbridge London Borough of Richmond Upon Thames London Borough of Southwark London Borough of Sutton London Borough of Tower Hamlets London Borough of Waltham Forest London Borough of Wandsworth London Pensions Fund Authority Middlesbrough Borough Council Norfolk County Council North Yorkshire County Council Northamptonshire County Council Northumberland County Council Nottinghamshire County Council Oxfordshire County Council Powys County Council Rhondda-Cynon-Taff County Borough Council Royal Borough of Kensington & Chelsea Royal Borough of Kingston Upon Thames Royal Borough of Windsor and Maidenhead Shropshire County Council Somerset County Council South Tyneside Metropolitan Borough Council South Yorkshire Pensions Authority Staffordshire County Council Suffolk County Council Surrey County Council Tameside Metropolitan Borough Council Torfaen County Borough Council Warwickshire County Council Westminster City Council West Sussex County Council Wiltshire County Council Wirral District Council Wolverhampton City Council Worcestershire County Council Local Government Pension Scheme Aberdeen City Council The City of Edinburgh Council The City of Glasgow Council Dumfries & Galloway Council Dundee City Council Falkirk Council Fife Council The Highland Council Orkney Islands Council Scottish Borders Council Shetland Islands Council Local Government Pension Scheme (Scotland) Alfred McAlpine Group Areva Group British Energy Combined Group British Energy Generation Group Drax Power Group EA Technology Group EDF Energy Group Electricity Association Services Group E.ON UK Group First Hydro Group International Power Group Keadby Generation Group Magnox Electric Group Manweb Group National Grid Electricity Group Northern Electric Group RWE npower Group Southern Electric Group United Utilities Group Western Power Distribution Group Electricity Supply Pension Scheme ## Schedule 3: Responsibilities and liabilities of sub-scheme administrators in respect of a sub-scheme ## 1 Finance Act 2004 Statutory Reference Subject-matter Liabilities Section 205 Short service refund lump sum charge Section 206 Special lump sum death benefit s charge Section 207 Authorised surplus payments charge Section 215(9) Lifetime allowance charge – amount of charge Section 217 Lifetime allowance charge (joint & several with the individual) Section 227(3) Annual allowance charge Section 238(3) and (4) Pension input period Section239 Scheme sanction charge Information Section 250(1) To make and deliver a registered pension scheme return Section 254 Accounting for tax by scheme administrators Interest and penalties Section 257 Penalty for failure to comply with a S250 notice. Section 258(1) Penalty for failure to provide information within S251(1)(a) Section 258(2) Penalty for failure to comply with regulations within S251(1)(b) Section 259(1) Penalty for failure to comply with a notice under S252 Section260(1), (4) and (6) Penalties for failure to make a return within S254 Section 265(3) Penalty for winding up a scheme to obtain a winding up lump sum Section 266(2) Penalty for transfers to “non” insured schemes (unauthorised transfer) Section 266B Scheme liability (inserted by Paragraph 4 Schedule10 FA 05) Section 267 Discharge of lifetime allowance charge in the case of good faith. Section 268 Unauthorised payment surcharge & scheme sanction charge Scheme administrator Section 271 Liability of a scheme administrator Section 272 Trustees etc. liable as scheme administrator Section 273 Members liable as scheme administrator Section 274 Supplementary provisions Paragraph 1of Schedule28 Scheme administrator to receive evidence of member’s ill health. Paragraph 15(2)(b) of Schedule28 Scheme administrator to agree if a child is a dependant Paragraph 15(3) of Schedule 28 Scheme administrator to decide whether someone is a dependant. Paragraph 4(1) of Schedule 29 Scheme administrator to consider evidence of serious ill health Paragraph 19(1)(d) of Schedule 29 Scheme administrator to nominate arrangement for transfer lump sum benefit. Paragraph 19(2) (e) of Schedule 29 Scheme administrator to nominate arrangement for transfer lump sum benefit. Paragraph 9(2) of Schedule 32 Changes to benefit crystallisation event 2 Paragraph 9(3) of Schedule 32 Changes to benefit crystallisation event 2 (inserted by paragraph 43(4) of Schedule10 to the Finance Act 2005 05). Paragraph 13(4) and (5) of Schedule 32 Changes to benefit crystallisation event 3 (inserted by paragraph 43(5) of Schedule10 to the Finance Act 20005) Paragraph 14(1A) & (1B) of Schedule 32 Changes to benefit crystallisation event 5 (inserted by paragraph 43(7) of Schedule10 to the Finance Act 2005) Paragraph 5 of Schedule 34 Exemption for scheme administrator from s.205 & s.206 charges Paragraph 17 of Schedule 34 Omits reference to scheme administrator in s. 217 Paragraph 4(1), (2) and (3) of Schedule36 Transitional provisions for deemed registered schemes Paragraph 6 of Schedule 36 Pre-commencement liability of scheme administrator ## 2 Secondary Legislation The Pension Schemes (Discharge of Liabilities under Section 267 and 268 of the Finance Act 2004) Regulations 2005 The Registered Pension Schemes (Relief at Source) Regulations 2005 The Registered Pension Schemes (Minimum Contributions) Regulations 2006 The Registered Pension Schemes (Accounting and Assessment) Regulations 2005 The Registered Pension Schemes and Employer Financed Retirement Benefit Schemes (Information) (Prescribed Description of Person) Regulations 2005 The Registered Pension Schemes (Provision of Information) Regulations 2006 The Registered Pension Schemes (Modification of the Rules of Existing Schemes) Regulations 2006 The Pension Benefits (Insurance Company Liable as Scheme Administrator) Regulations 2006 The Registered Pension Schemes (Meaning of Pension Commencement Lump Sum) Regulations 2006 The Registered Pension Schemes and Overseas Pension Schemes (Electronic Communication of Returns and Information) Regulations 2006 The Taxes Management Act 1970 (Modification of Schedule 3 for Pension Schemes Appeals) Order 2005 The Registered Pension Schemes (Transfer of Sums and Assets) Regulations 2006 The Registered Pension Schemes (Unauthorised Payments by Existing Schemes) Regulations 2006 ## Explanatory note (This note is not part of the Regulations) These Regulations provide for certain registered pension schemes to be treated as if they were a number of separate registered pension schemes pursuant to section 274A of the Finance Act 2004 (c. 12) (“the 2004 Act”). Regulation 1 provides for citation, commencement and interpretation. Regulation 2 prescribes the pension schemes that shall be treated as separate pension schemes. Paragraph (1) provides that the schemes listed in Schedule 1 together with any successor schemes shall be treated as schemes that have been split into a number of separate schemes (“split schemes”). Paragraph (2) contains a definition of “successor schemes”. Paragraph (3) provides that the scheme administrator of a successor scheme shall notify HMRC of any successor schemes that he is assuming responsibility for. Paragraph (4) provides that Schedule 2 shall list schemes which are being treated as separate schemes for the purpose of the regulations (“sub-schemes”). Paragraph (5) and (6) provide that, in addition to the schemes listed in Schedule 1, schemes which meet the conditions set out shall be treated as split schemes. Paragraph (7) defines a sub successor scheme and Paragraph (8) provides that the scheme administrator of a sub successor scheme shall notify HMRC when he assumes responsibility for such a scheme. Regulation 3 provides that scheme administrators of sub-schemes shall assume the liabilities and responsibilities set out in schedule 3 and that the scheme administrator of the split scheme shall cease to have responsibility for those matters. Paragraphs (3) to (6) provide that sections 270,272, 273 and 274 of the 2004 Act shall apply to sub-scheme administrators with the amendments set out. Regulation 4 contains amendments to section 209 (unauthorised payments surcharge) of the 2004 Act so that the charge can apply to sub-scheme administrators. These Regulations impose no new costs on business. --- Source: https://www.legislation.gov.uk/uksi/2006/569 (the official version) Page: https://openlegislation.uk/registered-pension-schemes-splitting-of-schemes-regulations-2006 Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.