The Taxation of Pension Schemes (Consequential Amendments) Order 2006

The Electricity Act 1989^f1 is amended as follows.

In Schedule 14 (The Electricity Supply Pension Scheme)—

In Schedule 15 (The Scottish Pension Schemes)—

The Social Security Contributions and Benefits Act 1992^f1 is amended as follows.

In section 30DD(6) (incapacity benefit: reduction for pension payments)^f2, for “a contract or trust scheme approved under Chapter 3 of Part 14 of the Income and Corporation Taxes Act 1988 (retirement annuities).” substitute “an annuity contract or trust scheme approved under section 620 or 621 of the Income and Corporation Taxes Act 1988, 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”.

In section 122(1) (interpretation of Parts 1 to 6 and supplementary provisions), in the definition of “payments by way of occupational or personal pension” for paragraph (d) and (e) substitute—

“(d)

under a pension scheme registered under section 153 of the Finance Act 2004; or”.

The Social Security Contributions and Benefits (Northern Ireland) Act 1992^f1 is amended as follows.

In section 30DD(6) (incapacity benefit: reduction for pension payments)^f2, for “a contract or trust scheme approved under Chapter 3 of Part 14 of the Income and Corporation Taxes Act 1988 (retirement annuities).” substitute “an annuity contract or trust scheme approved under section 620 or 621 of the Income and Corporation Taxes Act 1988, 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”.

In section 121(1) (interpretation of Parts I to V1 and supplementary provisions), in the definition of “payments by way of occupational or personal pension” for paragraph (d) and (e) substitute—

“(d)

under a pension scheme registered under section 153 of the Finance Act 2004; or”.

in paragraph 1(1)^f2, in the definition of “eligible persons” omit sub-paragraph (b); and

for paragraph 3(3)(a) substitute—

“(a)

which would prejudice registration of that scheme for the purposes of Part 4 of the Finance Act 2004 (pension schemes etc);”.

The Pension Schemes Act 1993^f1 is amended as follows.

In section 9(5A) (requirements for certification of schemes: general)^f2 for paragraphs (a) and (b) substitute “is a registered pension scheme under section 153 of the Finance Act 2004”.

In section 28(8) (ways of giving effect to protected rights)^f3 in the definition of “the termination date” omit the words after “arrangement,”.

In section 28A (requirements for interim arrangements)^f4—

In section 33 (tax requirements to prevail over certification requirements) for “a scheme must comply if it is to qualify for tax-exemption or tax-approval” substitute “a registered scheme must comply under Part 4 of the Finance Act 2004”.

In section 163 (exemption of certain schemes from rule against perpetuities)—

In section 181(1) (general interpretation) omit the definitions of “tax-exemption” and “tax-approval”.

The Pension Schemes (Northern Ireland) Act 1993^f1 is amended as follows.

In section 5(5A) (requirements for certification of schemes: general)^f2 for paragraphs (a) and (b) substitute “is a registered pension scheme under section 153 of the Finance Act 2004”.

In section 24(8) (ways of giving effect to protected rights)^f3 in the definition of “the termination date” omit the words after “arrangement,”.

In section 24A (requirements for interim arrangements)^f4—

In section 29 (tax requirements to prevail over certification requirements) for “a scheme must comply if it is to qualify for tax-exemption or tax-approval” substitute “a registered pension scheme must comply under Part 4 of the Finance Act 2004”.

In section 159 (exemption of certain schemes from rule against perpetuities)—

In section 176(1) (general interpretation) omit the definitions of “tax-exemption” and “tax-approval”.

in paragraph 1(1), in the definition of “the relevant enactments” for “Chapter 1 of Part 14 of the Income and Corporation Taxes Act 1988 (retirement benefit schemes)” substitute “Part 4 of the Finance Act 2004 (pension schemes etc)”; and

in paragraphs 2(3)(i), 3(7)(b) and 4(2)(c)(ii) before “approved” in each place it occurs insert “registered or”.

The Pensions Act 1995^f1 is amended as follows.

In section 51 (annual increase in rate of pension), for subsection (1)(a)(i), substitute—

“(i)

is a registered pension scheme under section 153 of the Finance Act 2004, and ”.

In section 66A(6)(b) (prohibition on different rules for overseas residents etc.)^f2, for “approval” substitute “registration”.

In section 69(3)(b) (grounds for applying for modifications), for the words “an exempt approved scheme (within the meaning given by section 592(1) of the Taxes Act 1988)” substitute “a registered pension scheme under section 153 of the Finance Act 2004”.

In section 76(1) (excess assets on winding up), for paragraph (a) substitute—

“(a)

it is a registered pension scheme under section 153 of the Finance Act 2004,”.

Section 77 (excess assets remaining after winding up: power to distribute) is repealed.

In section 124(1) (interpretation of Part 1), in the definition of “pensioner member”^f3 omit “and who is not an active member of the scheme”.

The Pensions (Northern Ireland) Order 1995^f1 is amended as follows.

In Article 51(1)(a)(annual increase in rate of pension), for head (i) substitute—

“(i)

is a registered pension scheme under section 153 of the Finance Act 2004, and ”.

In Article 66A(6)(b) (prohibition on different rules for overseas residents etc.)^f2, for “approval” substitute “registration”.

In Article 69(3) (grounds for applying for modifications)—

In Article 76(1) (excess assets on winding up), for sub-paragraph (a) substitute—

“(a)

it is a registered pension scheme under section 153 of the Finance Act 2004,”.

Article 77 (excess assets remaining after winding up: power to distribute) is revoked.

In Article 121(1) (interpretation of Part 1), in the definition of “pensioner member”^f3 omit the words “and who is not an active member of the scheme”.

in sub-paragraph (1)(b) after “continues to be” insert “registered or”; and

in sub-paragraph (2), in the definition of “relevant enactments” for paragraph (a) substitute—

“(a)

Part 4 of the Finance Act 2004 (pension schemes etc); and”.

The Welfare Reform and Pensions Act 1999^f1 is amended as follows.

In section 1 (meaning of “stakeholder pension scheme”)—

In section 11 (effect of bankruptcy on pension rights: approved arrangements)—

In sections 26(1) (interpretation of Part 3) and 46(1) (interpretation of Chapter 1 of Part 4) for the definition of “retirement annuity contract” substitute—

• ““retirement annuity contract” means an annuity contract or trust scheme approved under section 620 or 621 of the Income and Corporation Taxes Act 1988 or a substituted contract within the meaning of section 622(3) of that Act which became a registered pension scheme by virtue of paragraph 1(1)(f) of Schedule 36 to the Finance Act 2004,”;

In paragraph 7(1) of Schedule 5 (pension credits: mode of discharge)—

The Welfare Reform and Pensions (Northern Ireland) Order 1999^f1 is amended as follows.

In Article 3 (meaning of “stakeholder pension scheme”)

In Article 12 (effect of bankruptcy on pension rights: approved arrangements)—

In Articles 23(1) (interpretation of Part IV) and 43(1) (interpretation of Chapter I) for the definition of “retirement annuity contract” substitute—

• ““retirement annuity contract” means an annuity contract or trust scheme approved under section 620 or 621 of the Income and Corporation Taxes Act 1988 or a substituted contract within the meaning of section 622(3) of that Act which became a registered pension scheme by virtue of paragraph 1(1)(f) of Schedule 36 to the Finance Act 2004,”.

In paragraph 7(1) of Schedule 5 (pension credits: mode of discharge)—

The Pensions Act 2004^f1 is amended as follows.

In Schedule 3 (restricted information held by the regulator: certain permitted disclosures to facilitate exercise of functions), in the “functions” column opposite “the Commissioners of Inland Revenue or their officers”—

Paragraph 63 of Schedule 12 (minor and consequential amendments) is repealed.

The Pensions (Northern Ireland) Order 2005^f1 is amended as follows.

In Schedule 3 (restricted information held by the regulator: certain permitted disclosures to facilitate exercise of functions), in the “functions” column opposite “the Commissioners of Inland Revenue or their officers”—

Paragraph 63 of Schedule 12 (minor and consequential amendments) is repealed.

The Income Tax (Building Societies) (Dividends and Interest) Regulations 1990^f1 are amended as follows.

In regulation 4(1) (gross payments)—

The Personal and Occupational Pension Schemes (Protected Rights) Regulations 1996^f1 are amended as follows.

Omit regulation 7.

In regulation 13(2)(a)(i) (death before giving effect to protected rights: interim arrangements for widow, widower or surviving civil partner)—

The Manufactured Payments and Transfer of Securities (Tax Relief) Regulations 1995^f1 are amended as follows.

In regulation 3(1)—

In regulation 4(1)—

The Income Tax (Pension Funds Pooling Schemes) Regulations 1996^f1 are amended as follows.

In regulation 2 (interpretation)—

In regulations 2(4), 2(5)(c), 4(3)(a)(iii) (description of a pension funds pooling scheme), 9(4)(b) (duties of trustee of a pension funds pooling scheme—participants ceasing to be eligible to participate), 9(5)(d)(ii), 9(7), 11(3) (duties of trustee of a pension funds pooling scheme—annual provision of information ), 11(4), 11(5) and 11(5)(b) for “an overseas scheme” wherever those words appear substitute “a recognised overseas pension scheme”.

In regulation 4(3)(a)(i) (description of a pension funds pooling scheme) for “an exempt approved scheme” substitute “a registered pension scheme”.

In regulation 7 (approval of participants)—

In regulation 9—

In regulation 11(3)(b) and (4)(a) for “(g) and, where the scheme is not one to which regulation 7(4) applies, sub-paragraphs (h) to (o)” substitute “(f)”.

The Personal and Occupational Pension Schemes (Protected Rights) Regulations (Northern Ireland) 1997^f1 are amended as follows.

Omit regulation 7.

In regulation 13(2)(a)(i) (death before giving effect to protected rights: interim arrangements for widow, widower or surviving civil partner)—

The Education (Student Loans) (Repayment) Regulations 2000^f1 are amended as follows.

In regulation 15 (time for and amount of repayments)—

The Tax Credits (Definition and Calculation of Income) Regulations 2002^f1 are amended as follows.

In regulation 2(2) (interpretation)—

In regulation 3(7) (calculation of income of claimant)^f2—

In regulation 5(1) (pension income)—

The Income Tax (Pay As You Earn) Regulations are amended as follows.

In regulation 3(2) of the Income Tax (Pay As You Earn) Regulations 2003 (net PAYE income)^f1 for the definition of “allowable pension contributions” substitute—

• “allowable pension contributions“ means any contribution under a registered pension scheme which is withheld from the payment of PAYE income which is allowed to be deducted from employment income by the sponsoring employer under section 193(2) of the Finance Act 2004 (relief under net pay arrangements);

• “registered pension scheme” and “sponsoring employer” have the meanings given by section 150(2) and (6) respectively, of the Finance Act 2004.”.

In regulation 15(3)(c) for “section 592(7) or 594(1) of ICTA (exempt approved schemes and exempt statutory schemes)^f2.” substitute “sections 188 to 195 of the Finance Act 2004 (members' contributions)^f3.”.