The Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) Regulations 2006
| Jurisdiction | UK Non-devolved |
| Citation | SI 2006/207 |
| Year | 2006 |
2006 No. 207
INCOME TAX
The Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) Regulations 2006
Made 1st February 2006
Laid before the House of Commons 2nd February 2006
Coming into force 6th April 2006
The Commissioners for Her Majesty’s Revenue and Customs, in exercise of the powers conferred upon them by paragraphs 3(2), (5) and (6), 4(2) and (4), 7, 12 and 19 of Schedule 34 to the Finance Act 20041, make the following Regulations:
PART 1
Introduction
Citation, commencement and interpretation
1.—(1) These Regulations may be cited as the Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) Regulations 2006 and shall come into force on 6th April 2006.
(2) In these Regulations—
“the Act” means the Finance Act 2004 any reference (without more) to a numbered section or Schedule is a reference, as the case requires, to the section of, or Schedule to, the Act which bears that number;
“benefit crystallisation event 8” means the event which constitutes benefit crystallisation event 8 in section 216;
“recognised overseas pension scheme” has the meaning given by section 150(8); and
“relevant non-UK scheme” has the same meaning given by paragraph 1(5) of Schedule 34.
PART 2
Application and computation of UK tax charges
Computation of a member’s UK tax-relieved fund under a relevant non-UK scheme
2. The amount of a member’s UK tax-relieved fund under a relevant non-UK scheme is the aggregate of—
(a) the amounts which, for each tax year before that in which the computation falls to be made, would have been arrived at in relation to arrangements under the relevant non-UK scheme relating to the individual as pension input amounts under sections 230 to 238 of the Act (annual allowance) as they apply by virtue of paragraph 8 of Schedule 34 to the Act, and
(b) the amount which would be so arrived at if the period beginning with 6th April of the tax year in which the computation falls to be made; and ending immediately before the making of the computation, were a tax year,
assuming that section 229(3) did not apply.
Computation of a member’s relevant transfer fund
3. The amount of a member’s relevant transfer fund under a relevant non-UK scheme (that scheme being referred to here as “the RNUKS”) is the sum of—
(a) the amount crystallised by virtue of benefit crystallisation event 8 on the transfer from a UK registered scheme to the RNUKS; and
(b) so much of the member’s UK tax-relieved fund under any other relevant non-UK scheme as has been transferred to the RNUKS but has not been subject to the unauthorised payments charge; and
(c) so much of the member’s relevant transfer fund under any other relevant non-UK scheme as has been transferred to the RNUKS—
(i) without being subject to the unauthorised payments charge; and
(ii) at a time when the other relevant non-UK scheme is a recognised overseas pension scheme.
Attributing payments to particular funds under a relevant non-UK scheme
4.—(1) This regulation applies to determine to which part of a relevant non-UK scheme a payment to, or in respect of, a member is referable.
(2) It shall be assumed that—
(a)
(a) payments made by the scheme to or in respect of the member are made out of the member’s UK tax-relieved fund in priority to any other fund under that scheme; and
(b)
(b) the amount of the member’s UK tax-relieved fund is reduced by the amount paid out of the scheme.
(3) If the member’s UK tax-relieved fund is nil, or has been reduced to nil, it shall be assumed that—
(a)
(a) payments made by the scheme to or in respect of the member are made out of the relevant transfer fund in priority to any other fund under that scheme; and
(b)
(b) the amount of the relevant transfer fund is reduced by the amount paid out of the scheme.
PART 3
Modifications to Part 4 of the Finance Act 2004 in respect of relevant non-UK schemes
5. Part 4 of the Finance Act 2004 shall be modified in respect of relevant non-UK schemes, within the meaning of paragraph 1(5) of Schedule 34, in accordance with the following provisions of these Regulations.
Modification of pension rules
6. In section 165, in pension rules 4 and 6 omit from “but a scheme pension” to the end.
Modification of pension death benefit rules
7. In section 167 in pension death benefit rules 3 and 5 omit from “but a dependants' scheme pension” to the end.
Modification of section 227
8. In section 227(3)(b) for “scheme administrator” substitute “scheme manager”.
Modification of section 231
9. In section 231—
(a) in subsection (3)—
(i) in paragraph (b) for “the retail prices index” substitute “a relevant index”;
(ii) omit paragraph (c); and
(b) at the end add—
“4 In this section “relevant index” means—
(a) an index of the movement of retail prices maintained, or officially recognised, by the government of the country or territory in which the recognised overseas scheme is established; or
(b) if there is no such index as is mentioned in paragraph (a) of this definition, the retail prices index.”.
Modification of section 235
10. In section 235—
(a) in subsection (3)—
(i) in paragraph (b) for “the retail prices index” substitute “a relevant index”;
(ii) omit paragraph (c); and
(b) at the end of the section add—
“4 In this section “relevant index” means—
(a) an index of the movement of retail prices maintained, or officially recognised, by the government of the country or territory in which the recognised overseas scheme is established; or
(b) if there is no such index as is mentioned in paragraph (a) of this definition, the retail prices index.”.
Modification of section 275
11.—(1) In the heading of section 275 at the end add “and Non-EEA annuity provider”.
(2) At the end of the section add—
“3 In this Part “non-EEA annuity provider” means a person resident in a country or territory outside the European Economic Area—
(a) whose normal business includes the provision of annuities; and
(b) who is regulated in the conduct of that business—
(i) by the government of that country or territory; or
(ii) a body established under the law of that country or territory for the purpose of regulating such business.”.
Modification of section 276
12. In section 276(2) for “scheme administrator” substitute “scheme manager”.
Modification of section 279
13.—(1) Section 279(1) shall be modified as follows.
(2) At the appropriate points in the alphabetical list insert—
““applicable pension scheme”, in relation to a pension sharing order in respect of a member’s spouse or ex-spouse, means a scheme which is—
(a) a recognised overseas pension scheme within the meaning of this Part; or
(b) a scheme which is recognised for tax purposes under the law of either the country or territory in which it is situate or that of the country or territory in which the pension sharing order is made;”; and
““ex-spouse”, in relation to a member, means the other party to a marriage with the member that has been dissolved or annulled;”;
(3) For the definitions of “pension credit” and “pension debit” substitute—
““pension credit” and “pension debit” mean respectively the amount by which—
(a) the entitlement of a member’s spouse or ex-spouse under an applicable pension scheme, is increased; and
(b) the entitlement of a member under a qualifying recognised overseas pension scheme is decreased,
pursuant to a pension sharing order;.”.
(4) For the definition of “pension sharing order or provision” substitute—
““pension sharing order” means an order of a court, by virtue of which amounts are transferred from a recognised overseas pension scheme of a member to an applicable pension scheme of that member’s spouse or ex-spouse, in or in connection with proceedings relating to the dissolution or annulment of the marriage of the parties;”.
Modification of Schedule 28
14.—(1) Schedule 28 is modified as follows.
(2) In paragraph 1—
(a)
(a) in sub-paragraph (a) after “registered medical practitioner” insert “or a recognised medical practitioner”;
(b)
(b) at the end of the paragraph add—
“In this paragraph “recognised medical practitioner” means a medical practitioner practising outside the United Kingdom who is authorised, licensed or registered to practise medicine in the country or territory, outside the United Kingdom, in which either the scheme or the member is resident.”.
(3) In the following provisions for “scheme administrator” substitute “scheme manager”.
The provisions are—
(a) paragraph 1(a);
(b) paragraph 2 (in each place where the expression occurs);
(c) paragraph 10(3)(b);
(d) paragraph 13(3);
(e) paragraph 16(1) and (2);
(f) paragraph 24(3)(b); and
(g) paragraph 27(3).
(4)...
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