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Chapter PTM025400

Document Cited authorities 2 Cited in Related
Vincent
Published date27 March 2015
Record NumberPTM025400
CourtHM Revenue & Customs
IssuerHM Revenue & Customs

Glossary PTM000001

The tax rules do not restrict who can be a member of a registered pension scheme nor do they provide a minimum or maximum age for scheme members. Individual pension schemes may restrict membership, and the rules for each scheme will set out who may join it.

Registered pension schemes can be open to employees or non-employees to join and non-UK residents can also join registered schemes. However, to obtain tax relief on personal contributions to a registered scheme, a member must be a relevant UK individual.

As well as paying contributions, members have a responsibility to inform the scheme administrator or trustee about changes to their personal circumstances. For example, a change of address or marital status. They may also have to provide information to help the administrator calculate whether allowances such as the lifetime allowance have been exceeded.

Section 151 Finance Act 2004

Members are often referred to as active, deferred or pensioner. For the purposes of Part 4 of Finance Act 2004:

  • an active member is an individual who has benefits building up in the pension scheme
  • a deferred member is an individual who has rights under a pension scheme and who is neither an active member nor a pensioner member, and
  • a pensioner member is an individual who is entitled to be paid benefits under the pension scheme and who is not an active member of that scheme.

Where an individual is being paid a pension under an annuity policy, whether or not the individual is a member of the scheme depends on how the...

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