# The Taxation of Pension Schemes (Transitional Provisions) (Amendment) (No.2) Order 2011, Note: Explanatory note


(This note is not part of the Order)
This Order amends the Taxation of Pension Schemes (Transitional Provisions) Order 2006 (S.I. 2006/572), in consequence of the amendments made to the Finance Act 2004 (“FA 2004”) by the Finance Act 2011 (“FA 2011”).
Schedule 18 to FA 2011 reduces the standard lifetime allowance from £1.8M to £1.5M with effect from 6 April 2012. The amendments contained in article 2(2) are consequential on this provision and have effect from 6 April 2012. The opportunity is also taken to rectify a typographical error contained in article 23(2).
Schedule 16 to FA 2011 amends FA 2004 so as to remove the requirement to purchase an annuity at age 75 with effect from 6 April 2011. The amendments contained in article 2(3), (4) and (5) are consequential on this provision and have retrospective effect from 6 April 2011 pursuant to the powers contained in sections 282(A1) of FA 2004.
A Tax Information and Impact Note covering this instrument was published on 9 December 2010 alongside draft legislation for the Finance (No.3) Bill 2011 concerning the restriction of pensions tax relief. This was updated on 3 March 2011 to reflect further decisions relating to the restriction of pensions tax relief. A separate Tax Information and Impact Note covering the removal of the effective requirement to annuitise by age 75 was published on 9 December 2010. Both TIINs are available on the HMRC website at http://www.hmrc.gov.uk/thelibrary/tiins.htm. They each remain an accurate summary of the impacts of this instrument.

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Source: https://www.legislation.gov.uk/uksi/2011/1782/note (the official version)
Page: https://openlegislation.uk/taxation-of-pension-schemes-transitional-provisions-amendment-no2-order-2011/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.