The Postal Services Act 2011 (Taxation) Regulations 2012

CHAPTER 3 Miscellaneous provisions

Liability of scheme administrator of the new public scheme in respect of an individual’s annual allowance charge for the tax year in which the Accrued Rights Transfer takes place

20.—(1) Paragraph (2) applies where—

(a) the Accrued Rights Transfer has taken place; and

(b) the requirements in section 237B(1) (liability of scheme administrator)(1) are met in respect of an individual in relation to the RMPP for the tax year in which the Accrued Rights Transfer took place.

(2) The Transfer is to be treated as a transfer of all the sums or assets held for the purposes of, or representing accrued rights under, the RMPP so as to become held for the purposes of, or to represent rights under, the new public scheme within the meaning of section 237B(9).

Transitional protection under paragraph 14 of Schedule 18 to the Finance Act 2011 (“fixed protection”) to continue after the Accrued Rights Transfer

21.—(1) Paragraphs (2) and (3) apply where—

(a) the Accrued Rights Transfer has resulted in the transfer from the RMPP to the new public scheme of Accrued Rights in respect of an individual—

(i) who was an active member of the RMPP immediately before the Accrued Rights Transfer; and

(ii) to whom paragraph 14 (lifetime allowance charge: transitional provision) of Schedule 18 to the Finance Act 2011(2) applies.

(2) In paragraph 14(13)—

(a) paragraph (a) is disapplied; and

(b) for paragraph (b) substitute—

“(b) the percentage by which the retail prices index for the month of September in the previous tax year is higher than it was for the same month in the period of 12 months (or nil per cent if it is not higher).”

(3) The “retail prices index” means—

(a) the general index of retail prices (for all items) published by the Statistics Board; or

(b) if that index is not published for the relevant month, any substituted index or index figures published by the Statistics Board.

Calculation of pension input amount where there is an adjustment to benefit entitlement after the Accrued Rights Transfer

22.—(1) Paragraph (2) applies where—

(a) the Accrued Rights Transfer has resulted in the transfer from the RMPP to the new public scheme of Accrued Rights; and

(b) as a result of the Transfer there is an adjustment to reduce the entitlement of an individual to benefits under the new public scheme and a corresponding adjustment to increase the entitlement of that individual to benefits under the RMPP.

(2) The adjustment and corresponding adjustment referred to in subsection (1)(b) are to be disregarded when arriving at the pension input amount for the RMPP and the new public scheme under sections 234 to 236A (pension input amount: defined benefits arrangements)(3).

Provision in relation to double taxation relief arrangements

23.—(1) Paragraph (2) applies where—

(a) immediately prior to the Accrued Rights Transfer a member of the RMPP had pensionable service in respect of the period prior to 1st October 1969;

(b) at any time after the Accrued Rights Transfer the recipient of a pension in respect of that member is resident outside the United Kingdom in a country which has entered into a double taxation relief arrangement with the United Kingdom; and

(c) as a result of the Transfer, there has been a change to the tax treatment of the pension payable in respect of that member in the new scheme under that double taxation relief arrangement.

(2) The tax charged under Chapter 5A (pensions under registered pension schemes) of Part 9 of the Income Tax (Earnings and Pensions) Act 2003(4) in respect of the member’s pension under the new public scheme must not exceed the tax which would have been charged in respect of that pension under that section had the pension been paid by the RMPP.

(3) For the purposes of this regulation, a “double taxation relief arrangement” means an arrangement that has effect under section 2(1) of the Taxation (International and Other Provisions) Act 2010(5).

Further protection in relation to changes to tax treatment of Accrued Rights as a result of the Transfer

24.—(1) Paragraph 2 applies where—

(a) the Accrued Rights Transfer has resulted in the transfer from the RMPP to the new public scheme of Accrued Rights in respect of a member;

(b) as a result of the Transfer, there has been a change to the tax treatment of one or both of the following—

(i) those Accrued Rights under the new public scheme;

(ii) the member’s rights under the RMPP; and

(c) no other provision in these Regulations applies to that change.

(2) The tax charged under the provisions in paragraph (3) in respect of the member’s Accrued Rights under the new public scheme and the member’s rights under the RMPP must not exceed the tax which would have been charged under those provisions in respect of those rights had the Transfer not taken place.

(3) The provisions are—

(a) section 208 (unauthorised payments charge)(6);

(b) section 209 (unauthorised payments surcharge) in relation to surchargeable unauthorised member payments within the meaning of section 210(7);

(c) section 214 (lifetime allowance charge);

(d) section 227 (annual allowance charge)(8); and

(e) Chapter 5A of Part 9 of the Income Tax (Earnings and Pensions) Act 2003.

(1)

Section 237B was inserted by paragraphs 1 and 15 of Schedule 17 to the Finance Act 2011.

(2)

2011 c.11.

(3)

Sections 234 to 236 were amended by paragraphs 1 and 10 to 12, and section 236A was inserted by paragraphs 1 and 13, of Schedule 17 to the Finance Act 2011.

(4)

2003 c.1. Chapter 5A was inserted into Part 9 by paragraphs 1 and 6 of Schedule 31 to the Finance Act 2004 (c. 12).

(5)

2010 c. 8.

(6)

Section 208 was amended by paragraphs 1 and 14 of Schedule 23 to the Finance Act 2006 (c. 25) and paragraphs 10 and 12 of Schedule 2 to the Finance Act 2009 (c. 10).

(7)

Section 209 was amended by paragraphs 1 and 15 of Schedule 23 to the Finance Act 2006 and paragraphs 10 and 13 of Schedule 2 to the Finance Act 2009. Section 210 was amended by paragraphs 1 and 16 of Schedule 23 to the Finance Act 2006.

(8)

Section 227 was amended by paragraph 45 of Schedule 16 and paragraphs 1 and 3 of Schedule 17 to the Finance Act 2011.