PART 12 Supplementary

CHAPTER 4 Payment and deduction of tax

155 Scheme manager to be scheme administrator for the purposes of Part 4 of Finance Act 2004
The scheme manager is appointed to be responsible for all functions that are functions conferred or imposed on the scheme administrator under Part 4 (pension schemes etc.) of FA 2004.

156 Payment on behalf of members of lifetime allowance charge
1 A member of this scheme may request the scheme manager to pay on the member’s behalf any amount that is payable by way of the lifetime allowance charge under section 214 (lifetime allowance charge) of FA 2004 (“the amount”) if—
(a) an event that is a benefit crystallisation event listed in the table in section 216(1) (benefit crystallisation events and amounts crystallised) of FA 2004 (“the event”) occurs in relation to the member; and
Section 216(1) was amended by the Finance Act 2005 (c. 7) Schedule 10 paragraphs 1, 31 and 42, the Finance Act 2006 (c. 25) Schedule 23 paragraphs 1 and 30, the Finance Act 2008 (c. 9) Schedule 29 paragraphs 1, 4 and 5 and the Finance Act 2011 (c. 11) Schedule 16 paragraphs 43, 62 and 73.
(b) the member and the scheme manager are jointly and severally liable in relation to the event.
2 A request may only be made by notice given to the scheme manager before the event occurs.
3 The scheme manager may only comply with a request if the member pays the amount to the scheme manager on or before the date on which the event occurs.

157 Reduction of benefits where lifetime allowance charge payable
1 This regulation applies if—
(a) an event that is a benefit crystallisation event (“the event”) listed in the table in section 216(1) of FA 2004 (“the table”) occurs in relation to a member;
(b) the member and the scheme manager are jointly and severally liable in relation to the event; and
(c) no request has been duly made under regulation 156 in relation to the event or, if such a request has been made, the scheme manager is prevented from complying with it by paragraph (3) of that regulation.
2 If this regulation applies—
(a) the scheme manager must pay the tax payable on the event;
(b) if the event is benefit crystallisation event 8 in the table (transfer to qualifying recognised overseas pension scheme), the amount or value of the sums or assets transferred must be reduced; and
(c) in the case of any other event in the table, the amount or value of the benefits payable to or in respect of the member must be reduced.
3 The amount or value of the reduction—
(a) must fully reflect the amount of the tax so paid;
(b) must be determined in accordance with guidance provided by the scheme manager; and
(c) in the case of any reduction to pension benefits, must be consistent with normal actuarial practice.

158 Information about payment of annual allowance charge
1 If a member’s pension scheme input amount for this scheme for a tax year exceeds the amount of the annual allowance for that tax year, paragraph (2) applies in respect of the member for that tax year.
2 The scheme manager must, no later than 31st July after the end of the tax year, provide the member with any information the scheme manager considers appropriate to assist the member to arrange payment of the annual allowance charge for that tax year.
3 In this regulation, “pension scheme input amount” has the same meaning as in section 237B(2) (liability of scheme administrator) of FA 2004.
2004 c. 12; section 237B was inserted by the Finance Act 2011 (c. 11) Schedule 17 paragraphs 1 and 15 and was amended by the Finance Act 2013 (c. 29) Schedule 46 paragraphs 119 and 129.

159 Reduction of benefits where annual allowance charge paid by scheme manager
1 This regulation applies where—
(a) a member gives valid notice to the scheme manager of joint and several liability for an annual allowance charge under section 237B(3) (liability of scheme administrator) of FA 2004; and
(b) the scheme manager satisfies the liability specified in the notice.
2 The amount or value of the benefits payable to or in respect of the member for the tax year to which the notice relates must be reduced by the scheme manager in accordance with paragraph (3).
3 Subject to paragraph (4), the reduction in the amount or value of benefits—
(a) must fully reflect the amount paid by the scheme manager; and
(b) must be consistent with normal actuarial practice.
4 Benefits may only be reduced under this regulation to the extent that the reduction would not result in the loss of any part of a guaranteed minimum pension to which a person is entitled under sections 14 (earner’s guaranteed minimum) or 17 (minimum pension for surviving spouses and civil partners) of PSA 1993.