Finance Act 2005

Part 5 Pensions etc

101 Pension schemes etc.

Schedule 10 contains provision about pension schemes and related matters.

102 Pension Protection Fund etc.

(1) The Treasury may by regulations make provision for and in connection with the application of the relevant taxes in relation to—

(a) the Pension Protection Fund,

(b) the Fraud Compensation Fund, and

(c) the Board of the Pension Protection Fund,

and in relation to any person in connection with either of those Funds or that Board.

(2) The provision that may be made by the regulations includes provision imposing any of the relevant taxes (as well as provision for exemptions or reliefs).

(3) The relevant taxes are—

(a) income tax,

(b) capital gains tax,

(c) corporation tax,

(d) inheritance tax,

(e) value added tax, and

(f) stamp duty land tax.

(4) The regulations may, in particular, include provision for and in connection with the taxation of payments made in accordance with the pension compensation provisions (within the meaning of Part 2 of the Pensions Act 2004 (c. 35): see section 162(2) of that Act).

(5) The exemptions and reliefs that may be given by the regulations include, in particular, exemption from—

(a) charges to corporation tax in respect of any income arising from any assets of the Board (or in either Fund) and other receipts of the Board (or either Fund) and any chargeable gains arising from the disposal of any assets of the Board (or in either Fund),

(b) charges to income tax and corporation tax in respect of the levies referred to in sections 117, 174, 175, 189 and 209 of the Pensions Act 2004, and

(c) any charge to capital gains tax, or corporation tax on chargeable gains, in respect of the receipt of fraud compensation payments (within the meaning of Part 2 of that Act: see section 182(1) of that Act).

(6) The regulations may make provision in relation to any time after 5th April 2005.

(7) The provision made by the regulations may be framed as provision applying with appropriate modifications—

(a) for times before 6th April 2006, provisions having effect in relation to exempt approved schemes (within the meaning of Chapter 1 of Part 14 of ICTA: see section 592(1) of that Act), and

(b) for times on or after that date, provisions having effect in relation to registered pension schemes (within the meaning of section 832(1) of ICTA).

(8) The regulations may include—

(a) provision amending any enactment or instrument, and

(b) consequential, supplementary and transitional provisions.

(9) The regulations are to be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of the House of Commons.

(10) In this section—

• “the Board of the Pension Protection Fund” means the body corporate established under section 107 of the Pensions Act 2004 (c. 35),

• “the Fraud Compensation Fund” means the Fund required to be held, managed and applied by that Board under paragraph (b) of subsection (1) of section 110 of that Act, and

• “the Pension Protection Fund” means the Fund required to be held, managed and applied by that Board under paragraph (a) of that subsection.