Amendments to the Pension Schemes (Categories of Country and Requirements for Overseas Pension Schemes and Recognised Overseas Pension Schemes) Regulations 20064

In regulation 3 (recognised overseas pension schemes: prescribed countries or territories and prescribed conditions)—

a

in paragraph (1) for “the pension scheme must” to the end substitute—

the pension scheme must satisfy—

a

the requirement in paragraph (6); and

b

one or more of the following requirements—

i

the requirement that the scheme must be established in a country or territory mentioned in paragraph (2),

ii

the requirement in paragraph (4),

iii

the requirement in paragraph (5).

b

in paragraph (2)—

i

for “paragraph (1)(a)” substitute “paragraph (1)(b)(i)”;

ii

in sub-paragraph (c) after “any country or territory” insert “, other than New Zealand,”;

c

in paragraph (4) omit “The requirement is that,”; and

d

after paragraph (4) insert—

5

At the time of a transfer of sums or assets which would, subject to these Regulations, constitute a recognised transfer the scheme must be of a kind specified in Schedule 2 to these Regulations.

6

Where tax relief in respect of benefits paid from the scheme is available to a member of the scheme who is not resident in the country or territory in which the scheme is established, the same or substantially the same tax relief must—

a

also be available to members of the scheme who are resident in the country or territory; and

b

apply regardless of whether the member was resident in the country or territory—

i

when the member joined the scheme; or

ii

for any period of time when they were a member of the scheme.

7

For the purposes of paragraph (6) “tax relief”—

a

is any tax relief that is available under the system of taxation of personal income in the country or territory in which the scheme is established; and

b

includes the grant of an exemption from tax other than an exemption which applies by virtue of double taxation arrangements.

8

In paragraph (7)(b) “double taxation arrangements” means arrangements made between the country or territory in which the scheme is established and another country or territory with a view to affording relief from double taxation.