Regulation 3 Amendment of the Income Support (General) RegulationsI1

in the definition of “pension fund holder”^f2—

for the definition of “personal pension scheme”^f3 substitute—

• ““personal pension scheme” means—

  1. (a)

     a personal pension scheme as defined by section 1 of the Pension Schemes (Northern Ireland) Act 1993^f4;

  2. (b)

     an annuity contract or trust scheme approved under section 620 or 621 of the Income and Corporation Taxes Act 1988^f5 or a substituted contract within the meaning of section 622(3) of that Act which is treated as having become a registered pension scheme by virtue of paragraph 1(1)(f) of Schedule 36 to the Finance Act 2004^f6;

  3. (c)

     a personal pension scheme approved under Chapter IV of Part XIV of the Income and Corporation Taxes Act 1988 which is treated as having become a registered pension scheme by virtue of paragraph 1(1)(g) of Schedule 36 to the Finance Act 2004;”;

omit the definition of “retirement annuity contract”^f7; and

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

for “personal relief” in each place substitute “personal allowance”; and

for “sections 8(1) and (2) and 14(1)(a) and (2) of the Income and Corporation Taxes Act 1970” substitute “section 257(1) of the Income and Corporation Taxes Act 1988”.

for paragraph (1)(b) substitute—

“(b)

the personal allowance applicable to the person receiving assistance under the self-employment route by virtue of section 257(1) of the Income and Corporation Taxes Act 1988 (personal allowances) is allowable against that income.”; and

in paragraph (2) for “personal relief” substitute “personal allowance”.

in paragraph (2)(g)^f11 omit “, retirement annuity contract”;

in paragraph (2ZA)(a)^f12 omit “, a retirement annuity contract”;

for paragraph (2A)^f13 substitute—

“(2A)

This paragraph applies where a person aged not less than 60—

(a)

is entitled to money purchase benefits under an occupational pension scheme or a personal pension scheme;

(b)

fails to purchase an annuity with the funds available in that scheme; and

(c)

either—

(i)

defers in whole or in part the payment of any income which would have been payable to him by his pension fund holder;

(ii)

fails to take any necessary action to secure that the whole of any income which would be payable to him by his pension fund holder upon his applying for it, is so paid, or

(iii)

income withdrawal is not available to him under that scheme.

(2AA)

Where paragraph (2A) applies, the amount of any income foregone shall be treated as possessed by that person, but only from the date on which it could be expected to be acquired were an application for it to be made.”;

in paragraph (2B)^f14 for “to which either head (2A)(a)(i) or (ii)” substitute “where paragraph (2A)(c)(i) or (ii)”;

in paragraph (2C)^f15—

in paragraph (8)(a)^f16—