PART 1

Income tax, corporation tax and capital gains tax

Pensions

Increase of normal minimum pension age
10
1
Part 4 of FA 2004 (pension schemes etc) is amended in accordance with subsections (2) to (6).
2
In section 279(1) (other definitions), for the definition of “normal minimum pension age” substitute—
- “normal minimum pension age” means—
  1. in relation to, and to a member of, a pension scheme that is not a uniformed services pension scheme—
    1. before 6 April 2010, 50,
    2. on and after that date but before 6 April 2028, 55, and
    3. on and after 6 April 2028, 57, and
  2. in relation to, and to a member of, a uniformed services pension scheme—
    1. before 6 April 2010, 50, and
    2. on and after that date, 55,
.
3
In that section, after subsection (3) insert—
4
In this section “uniformed services pension scheme” means a pension scheme that—
a
is established by or under an enactment or Royal Warrant for the benefit of persons described in subsection (5) (whether or not other persons may be members of such a scheme), or
b
is established solely for the receipt of additional voluntary contributions from members of a scheme falling within paragraph (a),
subject to any regulations made under subsection (6).
5
Those persons are persons who are or were—
a
members of the naval, military or air forces of the Crown (including members of any reserve force);
b
members of a police force other than the Civil Nuclear Constabulary;
c
firefighters.
6
The Treasury may by regulations —
a
amend subsection (5) by adding to, varying or omitting descriptions of persons;
b
provide for a pension scheme not falling within subsection (4)(a) or (b) that is specified, or is of a specified description, to be treated as a uniformed services pension scheme;
c
provide for a pension scheme falling within subsection (4)(a) or (b) that is specified, or is of a specified description, to be treated as not being a uniformed services pension scheme.
“Specified” means specified in the regulations.
7
Regulations under subsection (6) may make transitional provision and savings.
4
In Schedule 36 (pension schemes etc: transitional provisions and savings), in paragraph 21 (member’s protected pension age applies instead of normal minimum pension age)—
a
in sub-paragraph (1), for “or 23” substitute “, 23 or 23ZB”;
b
in sub-paragraph (2), for “and 23(8)” substitute “, 23(8) and 23ZB(7)”.
5
In that Schedule, after paragraph 23ZA insert—

Protected pension age: scheme rights existing before 4 November 2021
23ZB
1
This paragraph applies in relation to a relevant registered pension scheme and a member of the pension scheme if—
a
neither paragraph 22 nor 23 applies in relation to them, and
b
the entitlement condition or the block transfer condition is met in relation to the scheme and the member.
2
A registered pension scheme is “relevant” if it is not a uniformed services pension scheme (as defined in section 279(4)).
3
The entitlement condition is met if—
a
immediately before 4 November 2021 the member had an actual or prospective right under the pension scheme to any benefit from an age of less than 57,
b
the rules of the pension scheme on 11 February 2021 included provision conferring such a right on some or all of the persons who were then members of the pension scheme, and
c
the member either had such a right under the scheme on 11 February 2021 or would have had such a right had the member been a member of the scheme on 11 February 2021.
4
Where—
a
a recognised transfer is made on or after 4 November 2021 in execution of a request made before that date, and
b
that transfer would, if executed before that date, have resulted in the member having an actual or prospective right under a pension scheme to any benefit from the age of less than 57 immediately before that date,
the member is, for the purposes of this paragraph, to be treated as having that right under that scheme at that time.
5
The block transfer condition is met if the member is a member of the pension scheme (the “transferee pension scheme”) as a result of—
a
a block transfer to the transferee pension scheme on or after 4 November 2021 from a pension scheme (the “original pension scheme”) where the entitlement condition is met in relation to the original scheme and the member,
b
a block transfer to the transferee pension scheme from a pension scheme (the “original pension scheme”) on or before 3 November 2021 where—
i
immediately before the transfer the member had an actual or prospective right under the original pension scheme to any benefit from an age of less than 57,
ii
the rules of the original pension scheme met paragraph (b) of the entitlement condition, and
iii
paragraph (c) of that condition is met in relation to the original pension scheme and the member, or
c
a block transfer to the transferee pension scheme from a pension scheme (the “transferor pension scheme”) that was a transferee pension scheme in relation to an original pension scheme or another transferor pension scheme by virtue of the previous application of paragraph (a) or (b) or the previous application (on one or more occasions) of this paragraph.
6
For the purposes of sub-paragraph (5), a transfer is a “block transfer”, if it involves the transfer, in a single transaction, of all of the sums and assets held for the purposes of, or representing accrued rights under, the arrangements under a pension scheme which relate to the member and at least one other member of the scheme.
7
The member’s protected pension age is the higher of 55 and the age from which the member had an actual or prospective right to any benefit immediately before 4 November 2021 under—
a
in a case where the entitlement condition is met in relation to the member and the scheme, that scheme, or
b
in a case where the block transfer condition is met in relation to the member and the scheme and the entitlement condition is not so met, whichever of that scheme, the original scheme or the transferor scheme that the member was a member of at that time.
8
But this paragraph does not have effect so as to give the member a protected pension age of more than 55 at any time before 6 April 2028.
23ZC
1
This paragraph applies in relation to sums or assets of a relevant registered pension scheme and the member of the scheme to which those sums and assets relate if—
a
none of paragraphs 22, 23 or 23ZB apply in relation to the scheme and the member, and
b
those sums or assets were subject to a relevant transfer to the scheme.
2
Sums or assets relate to a member of a pension scheme if they are held by that scheme for the purposes of, or represent accrued rights under, an arrangement relating to the member under the pension scheme.
3
Sums or assets were subject to a relevant transfer to a relevant registered pension scheme if they were transferred to that scheme from another relevant registered pension scheme (“the transferor scheme”) as a result of a recognised transfer and, immediately before the transfer—
a
they were sums or assets held by the transferor scheme for the purposes of, or representing accrued rights under, an arrangement relating to a member of the transferor scheme, and
b
paragraph 23ZB applied in relation to the transferor scheme and that member or this paragraph applied to those sums or assets and that member as a result of a relevant transfer to the transferor scheme.
4
If this paragraph applies in relation to sums or assets (“transferred sums or assets”) and a member of a relevant registered pension scheme, this Part of this Act (except for section 218(6) and paragraph 19) applies in relation to—
a
the transferred sums or assets while held for the purposes of, or representing accrued rights under, an arrangement under the scheme, and
b
any sums or assets held for the purposes of, or representing accrued rights under, such an arrangement that arise, or (directly or indirectly) derive, from—
i
any of the transferred sums or assets, or
ii
sums or assets which so arise or derive,
as if references to normal minimum pension age were to the member’s protected pension age under the first relevant registered pension scheme from which there was a relevant transfer of the sums or assets (see paragraph 23ZB(7)).
5
In this paragraph “relevant registered pension scheme” means a pension scheme that is not a uniformed services pension scheme (as defined in section 279(4)).

Lump sums before normal minimum pension age
.
6
In that Schedule—
a
before paragraph 22 insert—

Protected pension age: scheme rights existing before 6 April 2006
;
b
in paragraph 23ZA(2), in the words before paragraph (a), after “This Part” insert “of this Act”.
7
In section 308C(9) of ITEPA 2003 (provision of pensions advice: limited exemption), for paragraph (a) substitute—
a
if any of paragraphs 22, 23, 23ZB or 23ZC of Schedule 36 to FA 2004 apply in relation to the employee, the lowest protected pension age that applies as a result of those paragraphs (in relation to the employee or, as the case may be, to sums or assets that relate to the employee), or
.