The Personal Pension Schemes (Transfer Payments) Regulations 2001

PART III PROVISION FOR THE ACCEPTANCE OF TRANSFER PAYMENTS

Basic obligation

7.  Subject to regulations 4 and 8, a personal pension scheme may accept a transfer payment from—

(a) another personal pension scheme;

(b) an approved retirement benefits scheme;

(c) a relevant statutory scheme;

(d) a retirement annuity contract or trust scheme; or

(e) a fund to which section 608 of the Taxes Act applies;

but shall not accept a transfer payment from any other source without the prior written approval of the Board.

Prohibition of acceptance of certain transfer payments from certain schemes mentioned in Chapter I unless the administrator has obtained a certificate as to the value of the proposed transfer payment

8.—(1) A personal pension scheme shall not accept a transfer payment from—

(a) an approved retirement benefits scheme (other than an annuity contract securing relevant benefits as described in section 591(2)(g) of the Taxes Act(1) where that contract is made before 6th April 2001), or

(b) a relevant statutory scheme,

(“the paying scheme”) in the circumstances described in paragraph (2) unless the administrator of the personal pension scheme has obtained the certificate referred to in paragraph (3) from the administrator of the paying scheme.

(2) The circumstances described in this paragraph are circumstances where, in relation to any employment to which the proposed transfer payment, or any part of it, relates—

(a) the individual is, or has been at any time during the period of ten years prior to the date of the proposed transfer payment (“the proposed transfer date”), a controlling director, or

(b) (i) the individual’s annual remuneration is, or was, for any year of assessment falling (wholly or partly) during the period of six years prior to the proposed transfer date, more than the allowable maximum (within the meaning of section 640A(2)(2) of the Taxes Act) for the year of assessment in which the proposed transfer date falls, and

(ii) the individual’s age at the proposed transfer date will be not less than 45 years.

(3) The certificate referred to in this paragraph is a certificate, signed by the administrator of the paying scheme, which shows that the proposed transfer payment does not exceed the maximum amount which may be transferred from an approved retirement benefits scheme or relevant statutory scheme to a personal pension scheme calculated in accordance with Appendix XI of “Occupational Pension Schemes Practice Notes (IR 12)” published by the Board on 22nd January 2001.

(1)

Section 591(2)(g) was amended by Part V(12) of Schedule 26 to the Finance Act 1994 (c. 9).

(2)

Section 640A was inserted by paragraph 4 of Schedule 7 to the Finance Act 1989 (c. 26).