# The Taxation of Pension Schemes (Transitional Provisions) (Amendment No. 2) Order 2009, Note: Explanatory note


(This note is not part of the Order)
This Order amends the Taxation of Pension Schemes (Transitional Provisions) Order 2006 (“the principal Order”) in making further transitional provision in relation to the taxation of pensions paid to dependants, specifically children.
Article 1 provides for the citation, commencement and effect of this Order. The Order has retrospective effect, from 6th April 2006. That is the effective date of the pensions taxation simplification measures enacted by the Finance Act 2004 (known as “A Day”), as well as the date of coming into force of the principal Order. Section 283(3C) of the Finance Act 2004 provides that an order made under subsection (2) (such as this) may include provision having effect in relation to times before it is made.
Article 2 amends the principal Order by substituting article 34 and inserting new articles 34A and 34B. The only substantive change to article 34 is allowing block transfers to qualify for transitional relief. This relies in part on the concept of a “qualifying transferee scheme”, which is defined in the new article 34B. The remainder of the changes to article 34 are designed to achieve consistency with the structure and style of the new article 34A. The new article 34A modifies paragraph 15(2) of Schedule 28 to the Finance Act 2004 in relation to financially dependent children who are over 23 so that they are treated as dependants (if the conditions are met). This prevents tax charges arising.
A full and final Impact Assessment has not been produced for this instrument as a negligible impact on the private and voluntary sectors is foreseen.

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Source: https://www.legislation.gov.uk/uksi/2009/1989/note (the official version)
Page: https://openlegislation.uk/taxation-of-pension-schemes-transitional-provisions-amendment-no-2-order-2009/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.