Explanatory note
(This note is not part of the Regulations)
These Regulations provide that a payment, made by an existing pension scheme falling within paragraph 1(1) of Schedule 36 to the Finance Act, on or after 6th April 2006, is a payment of a description prescribed for the purposes of section 241(2) of that Act. But it is only a payment of such a description to the extent that it is referable to subsisting rights which have accrued under defined benefits arrangements before that day, or to contributions which have been paid to a scheme under money purchase arrangements on or before that day.
The effect of the Regulations is to exempt the payment from being a scheme chargeable payment. But the exemption is limited in the case of a payment which is a refund of additional voluntary contributions.
Regulation 1 provides for the citation and commencement of these Regulations.
Regulation 2 describes a payment which is exempted from being a scheme chargeable payment.
These Regulations do not impose new costs on business.