The Pension Schemes (Information Requirements — Qualifying Overseas Pension Schemes, Qualifying Recognised Overseas Pensions Schemes and Corresponding Relief) Regulations 2006

[F1 [F2 Information provided to member of QROPS or former QROPS by scheme manager where it appears member may be first flexibly accessing pension rights U.K.

3AA.— (1) If a relevant event occurs in relation to a member of a QROPS or former QROPS which is to be treated as a registered pension scheme for the purposes of section 227G (when pension rights are first flexibly accessed) by virtue of paragraph 9ZA or 9ZB of Schedule 34 (non-UK schemes: application of certain charges), the scheme manager—

(a) must provide the member with a statement—

(i) stating the date of the relevant event; and

(ii) explaining the matters specified in paragraph (3); and

(b) must do so before the end of 91 days beginning with the date of the relevant event,

but this is subject to paragraphs (4) and (7).

(2) For the purposes of this regulation—

(a) if—

(i) the member has a member’s flexi-access drawdown fund in respect of an arrangement under the scheme; and

(ii) the fund came into existence as a result of sums or assets being designated on or after 6th April 2015 as available for the payment of drawdown pension,

a relevant event occurs when a qualifying payment is made to the member from the fund;

(b) if section 165(3A) (pension rules) applied in the individual’s case to an arrangement at any time before 6th April 2015, a relevant event occurs at the start of 6th April 2015;

(c) if—

(i) the member has a member’s drawdown pension fund in respect of an arrangement under the scheme; and

(ii) the sums or assets that make up the fund become newly-designated funds by the operation of paragraph 8B or 8C of Schedule 28 (registered pension schemes: authorised pensions – supplementary),

a relevant event occurs when a qualifying payment is made to the member from the member’s flexi-access drawdown fund in respect of the arrangement; or

(d) a relevant event occurs when an uncrystallised funds pension lump sum is paid to the member by the scheme.

(3) The matters mentioned in paragraph (1)(a)(ii) are—

(a) that a relevant event has occurred in relation to the member and that, as a result, the member has flexibly accessed the member’s pension rights (although may first have done so previously);

(b) that if in any tax year the total of the pension inputs to money purchase arrangements, and certain hybrid arrangements, relating to the member exceeds [F3 £4,000]—

(i) there will be an annual allowance tax charge on the excess; and

(ii) the annual allowance for pension inputs to other arrangements relating to the member will be [F3 £4,000] less than it would otherwise be;

(c) where paragraph (2)(d) applies, that the member may be liable to a charge under section 636A(1A) and (1B) (exemption for certain lump sums) of ITEPA 2003 by virtue of paragraph 1(3)(da) of Schedule 34 (member payment charges); and

(d) the duties under regulation 3AB and the circumstances in which the member will have to comply with them.

(4) The scheme manager is not required to comply with paragraph (1) if—

(a) the scheme manager has complied with paragraph (1) in respect of an earlier relevant event; or

(b) the scheme manager is, at any time before complying with paragraph (1) in relation to the relevant event, informed—

(i) by the member; or

(ii) by the scheme manager of another QROPS or former QROPS or by the scheme administrator of a registered pension scheme,

that the member flexibly accessed pension rights at a time before the relevant event occurred.

(5) In this regulation, a reference to a qualifying payment from a fund is a reference to—

(a) payment of income withdrawal from the fund; or

(b) payment of a short-term annuity purchased using sums or assets out of the fund,

but does not include payment at a time when the whole of the fund represents rights attributable to a disqualifying pension credit.

(6) In paragraph (5) “disqualifying pension credit” is to be read in accordance with paragraph 2(3) and (4) of Schedule 29 (registered pension schemes: authorised lump sums– supplementary).

(7) This regulation does not apply unless the member is—

(a) resident in the United Kingdom when the relevant event occurs (or would occur but for this paragraph); or

(b) has been resident in the United Kingdom in any of the five tax years immediately preceding the tax year in which the relevant event occurs (or would occur but for this paragraph).]]

Textual Amendments

F1 Regs. 3A-3C inserted (6.4.2012) by The Registered Pension Schemes and Overseas Pension Schemes (Miscellaneous Amendments) Regulations 2012 (S.I. 2012/884), regs. 1(1), 9

F2 Regs. 3AA-3AD inserted (6.4.2015) by The Overseas Pension Schemes (Miscellaneous Amendments) Regulations 2015 (S.I. 2015/673), regs. 1, 5

F3 Sums in Reg. 3AA(3)(b) substituted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Registered Pension Schemes and Overseas Pension Schemes (Miscellaneous Amendments) Regulations 2018 (S.I. 2018/5), regs. 1(1), 7