The Registered Pension Schemes (Prescribed Manner of Determining Amount of Annuities) Regulations 2006
| Jurisdiction | UK Non-devolved |
| Citation | SI 2006/568 |
| Year | 2006 |
2006 No. 568
INCOME TAX
The Registered Pension Schemes (Prescribed Manner of Determining Amount of Annuities) Regulations 2006
Made 9th March 2006
Laid before the House of Commons 10th March 2006
Coming into force 6th April 2006
The Commissioners for Her Majesty’s Revenue and Customs make the following Regulations in exercise of the powers conferred by paragraphs 3(1)(d), 6(1)(e), 17(1)(c) and 20(1)(e) of Schedule 28 to the Finance Act 20041and now exercisable by them2.
Citation, commencement and interpretation
1.—(1) These Regulations may be cited as the Registered Pension Schemes (Prescribed Manner of Determining Amount of Annuities) Regulations 2006 and shall come into force on 6th April 2006.
(2) In these Regulations a reference to a numbered section or Schedule (without more) is a reference to the section of, or Schedule to, the Finance Act 2004 bearing that number.
Determining amount of member’s lifetime annuity
2.—(1) The annual amount of a member’s lifetime annuity shall be determined in accordance with any of paragraphs (2) to (4).
(2) The manner of determination prescribed by this paragraph is variation from year to year—
(a)
(a) where the variation is in line with, or by a percentage which does not exceed, the percentage by which the amount would vary if it varied in line with, changes in—
(i) the retail prices index,
(ii) the market value of any freely marketable assets,
(iii) an index reflecting the value of freely marketable assets,
after allowing for any contractual charges;
(b)
(b) in accordance with an insurance company’s published “Principles and Practices of Financial Management” in relation to with-profits business, as required under section 6.10 of the Financial Services Authority’s Conduct of Business Sourcebook as it stood immediately before the coming into force of these Regulations3; or
(c)
(c) any combination of those factors.
(3) The manner of determination prescribed by this paragraph is variation—
(a)
(a) in line with, or by a percentage which does not exceed the percentage by which the amount would vary if it varied in line with, changes in any of the factors specified in paragraph (2) (or any combination of those factors); and
(b)
(b) by reference to an assumed annual level of growth of between 0% and 5%, selected by the member, in the relevant factor or factors.
(4) The manner of determination prescribed by this paragraph is determination in accordance with the following conditions.
Condition 1
The amount of the annuity payable is linked to any of the factors specified in sub-paragraphs (a) to (d) of paragraph (2) (or any combination of those factors).
Condition 2
A review is conducted, by the insurance company by whom the annuity is provided, at least once every 5 years of the value of the...
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