Supplementary provisions
Section 23: Taxation
119.Subsections (1) and (4) of this section allow the Treasury by regulations to modify the way in which any relevant tax would otherwise have effect in relation to the new scheme, the members of the new scheme or a fund within section 21(1)(c).
120.Subsection (2) allows the Treasury to make regulations providing for the new scheme to be treated as a registered pension scheme under Part 4 of the Finance Act 2004
121.Subsections (3) and (4) allow the Treasury by regulations to modify the taxation treatment that could otherwise arise as a consequence of the changes effected by an order under Part 2 of this Act. This will allow tax provision to be made in respect of the Royal Mail Pension Plan (“RMPP, members of the Royal Mail Pension Plan (“RMPP, and Royal Mail group companies in relation to payments made, directly or indirectly, in relation to the Royal Mail Pension Plan (“RMPP or its members. These subsections will enable tax provision to be made mitigating the tax charges that might otherwise have arisen in respect of transfers of assets and in respect of tax consequences for the Royal Mail group companies of the changes to the pension arrangements.
122.Subsection (5) provides that regulations under subsections (1) and (3) can have retrospective effect provided that the regulations do not impose a charge to tax or withdraw a tax relief.
123.Subsection (6) enables the Treasury to make regulations to extinguish trade losses, made by companies in the Royal Mail group, in a qualifying accounting period, that the Treasury consider are attributable to deductions relating to contributions in respect of qualifying members of the Royal Mail Pension Plan (“RMPP. Such regulations would prevent companies in the Royal Mail group from using the losses to offset future tax liabilities.
124.Subsection (7) defines a qualifying accounting period for the purpose of subsection (6).
125.Subsection (8) ensures that regulations under subsection (6) only have effect if the company is wholly owned by the Crown on the day before an order is made establishing a new public scheme or transferring qualified accrued rights to a new public scheme.
126.Subsection (9) lists the taxes for which provision can be made and defines terms used in the section
Section 24: Information
127.Subsection (1) enables the Secretary of State to make provision, by order, requiring prescribed persons to disclose information required by the Secretary of State for any purpose under Part 2 of the Act.
128.Subsection (2) ensures that information relating to pensions or other benefits under the Royal Mail Pension Plan (“RMPP or the new public scheme may be shared among the relevant persons defined in subsection (3), which includes the Secretary of State, the administrators of the new public scheme, the Trustee of the Royal Mail Pension Plan (“RMPP and any of the Trustee's administrators, and the employer of qualifying members of the Royal Mail Pension Plan (“RMPP.
129.Subsection (4) ensures that the information sharing arrangements also apply to any section of the Royal Mail Pension Plan (“RMPP that is constituted as a separate pension scheme, where that separate scheme consists of or includes persons who are qualifying members of the Royal Mail Pension Plan (“RMPP.
Section 25: Orders and regulations
130.Subsection (1) of this section provides that before the Secretary of State exercises his powers under section 17(1) or (2) to establish a new scheme or transfer qualifying accrued rights, or exercises his powers under any other section in this Part, the Royal Mail Pension Plan (“RMPP trustees and a Royal Mail company (as defined in section 2(5)) must be consulted.
131.Subsection (2) provides that the Secretary of State may not make an order under this Part, other than under section 24, without the consent of the Treasury.
132.Subsection (4) allows the Secretary of State to commence any order (or any provision of any order) made under this Part of the Act on a specified day.
Section 26: Interpretation of Part 2
133.This section sets the meanings and definitions of terms used in Part 2 of the Act. In subsection (2) it is made clear that the power of the Secretary of State to amend the rules of the Royal Mail Pension Plan (“RMPP (section 19) also applies to related documents put in place to provide financial support to the Royal Mail Pension Plan (“RMPP (a specific example being the escrow agreement put in place at the time of the March 2006 triennial valuation).
