C2C3PART IIIPENSIONS: GENERAL

Annotations:
Modifications etc. (not altering text)
C3

Pt. III (arts. 10-17) power to modify conferred (15.12.2008) by Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13), ss. 115(2)(c), 118(2)(g)

Pensions and bankruptcy

Effect of bankruptcy on pension rights: approved arrangementsC112

1

Where a bankruptcy order is made against a person on a petition presented after the coming into operation of this Article, any rights of his under an approved pension arrangement are excluded from his estate.

2

In this Article “approved pension arrangement” means—

F1a

a pension scheme registered under section 153 of the Finance Act 2004;

b

F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

c

F3an occupational pension scheme set up by a government outside the United Kingdom for the benefit, or primarily for the benefit, of its employees;

d

F4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

e

F4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

f

F4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F5g

an annuity purchased for the purpose of giving effect to rights under a scheme falling within paragraph (a), including an annuity in payment before 6th April 2006, giving effect to rights under any scheme approved—

i

before that date under Chapters 1, 3 or 4 of Part 14 of the Taxes Act; or

ii

any relevant statutory scheme, as defined in section 611 of that Act;

h

any pension arrangements of any description which may be prescribed by regulations made by the Department.

3

F6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F74

Paragraph (5) applies if—

a

at the time when a bankruptcy order is made against a person, an appeal against a decision not to register a pension scheme has been made under section 156 of the Finance Act 2004, and

b

the decision of the General or Special Commissioners, (see section 156(3) of that Act), is to uphold the decision of Her Majesty's Revenue and Customs not to register the scheme.

5

Any rights of that person under the scheme shall (without any conveyance, assignment or transfer) vest in his trustee in bankruptcy, as part of his estate, immediately on—

a

the F8General or Special Commissioners' decision being made, or

b

(if later) the trustee's appointment taking effect or, in the case of the official receiver, his becoming trustee.

F96

Paragraph (7) applies if, at any time after a bankruptcy order is made against a person, Her Majesty's Revenue and Customs give notice—

a

withdrawing registration of the pension scheme under section 157 of the Finance Act 2004, and

b

the date specified as being that from which de-registration occurs under section 157(4) of that Act (“the de-registration date”), is the date from which the scheme ceases to be a registered pension scheme.

7

Any rights of that person under the scheme or arising by virtue of the arrangements, and any rights of his under any related annuity, shall (without any conveyance, assignment or transfer) vest in his trustee in bankruptcy, as part of his estate, immediately on—

a

the giving of the notice, or

b

(if later) the trustee's appointment taking effect or, in the case of the official receiver, his becoming trustee.

8

In paragraph (7) “related annuity” means an annuity purchased on or after the F10de-registration date for the purpose of giving effect to rights under the scheme or (as the case may be) to rights arising by virtue of the arrangements.

9

Where under paragraph (5) or (7) any rights vest in a person's trustee in bankruptcy, the trustee's title to them has relation back to the commencement of the person's bankruptcy; but where any transaction is entered into by the trustees or managers of the scheme in question—

a

in good faith, and

b

without notice of the making of the decision mentioned in paragraph (4)(b) or (as the case may be) the giving of the notice mentioned in paragraph (6),

the trustee in bankruptcy is not in respect of that transaction entitled by virtue of this paragraph to any remedy against them or any person whose title to any property derives from them.

10

Without prejudice to Article 73, regulations under paragraph (2)(h) may, in the case of any description of arrangements prescribed by the regulations, make provision corresponding to any provision made by paragraphs (4) to (9).

11

In this Article—

F11a

“occupational pension scheme” has the meaning given in section 150(5) of the Finance Act 2004;

F12b

“pension scheme” has the meaning given in section 150(1) of the Finance Act 2004 and “registered pension scheme” means a pension scheme registered under section 153 of the Finance Act 2004;

c

“estate”, in relation to a person against whom a bankruptcy order is made, means his estate within the meaning of Article 11 of the [1989 NI 19.] Insolvency (Northern Ireland) Order 1989;

d

“the Taxes Act” means the [1988 c. 1.] Income and Corporation Taxes Act 1988.

12

For the purposes of this Article a person shall be treated as having a right under an approved pension arrangement where—

a

he is entitled to a credit under Article 26(1)(b) as against the person responsible for the arrangement (within the meaning of Chapter I of Part V), and

b

the person so responsible has not discharged his liability in respect of the credit.