The Personal Pension Schemes (Appropriate Schemes) (Amendment) Regulations (Northern Ireland) 2006

Explanatory Note

(This note is not part of the Regulations)

These Regulations amend the Personal Pension Schemes (Appropriate Schemes) Regulations (Northern Ireland) 1997 (“the principal Regulations”).

Regulation 1 provides for citation, commencement and interpretation.

Regulation 2(2) inserts new definitions into the principal Regulations.

Regulation 2(3)(a) amends regulation 2(1)(a) of the principal Regulations to provide for the tax registration of schemes as a consequence of the Finance Act 2004 (c. 12).

Regulation 2(3)(b) inserts sub-paragraph (d) in regulation 2(2) of the principal Regulations to add to the forms of scheme which qualify as an appropriate personal pension scheme.

Regulation 2(3)(c) inserts paragraphs (2A) and (2B) into regulation 2 of the principal Regulations. These paragraphs specify that the rules of a scheme may provide for the scheme to hold any pension arrangement in addition to the pension arrangement described in regulation 2(1)(b) of the principal Regulations; it also provides that the rules of the scheme must not allow a member’s protected rights to be held in a pension arrangement which falls outside regulation 2(1)(b) of those Regulations.

Regulation 2(3)(d) amends regulation 2(4) of the principal Regulations to include definitions of terms used in regulation 2 as amended. In particular, it provides a definition of “self-invested personal pension scheme” necessary because of the lapse of the Personal Pension Schemes (Restriction on Discretion to Approve) (Permitted Investments) Regulations 2001 (S.I. 2001/117) on 6th April 2006, in consequence of the repeal of section 638A of the Income and Corporation Taxes Act 1988 (c. 1) under which they were made. Section 638A is repealed by Part 3 of Schedule 42 to the Finance Act 2004 with effect from 6th April 2006.

Regulation 2(4) amends regulation 3 of the principal Regulations to provide that for an arrangement under regulation 2(2)(d) of those Regulations to qualify as an appropriate personal pension scheme it must be established by an authorised corporate director of an open-ended investment company.