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EXPLANATORY NOTE
These Regulations make amendments relating to registered pension schemes and overseas pension schemes. Regulations 3 and 4 amend the Pension Schemes (Categories of Country and Requirements for Overseas Pension Schemes and Recognised Overseas Pension Schemes) Regulations 2006 (“Pension Regulations”). Those Regulations specify the requirements that an overseas pension scheme must satisfy.
Regulation 3 of these Regulations removes condition B from regulation 2(3) of the Pension Regulations and provides that Condition A (which is renamed as condition 3) is to be mandatory. To satisfy the requirement of being recognised for tax purposes an overseas pension scheme must now comply with three conditions in amended regulation 2(3).
Regulations 4 to 6 of these Regulations contain requirements that a recognised overseas pension scheme has to meet. Regulation 4 provides that all schemes must comply with new regulation 3(6) of the Pension Regulations. New regulation 3(6) provides that where relief in respect of pension benefits is available to a non-resident member, the same or substantially the same relief must also be available to a resident member. In addition a pension scheme established in New Zealand must now comply with requirements relating to scheme rules (in regulation 3(4) of the Pension Regulations) unless the scheme is mentioned in new Schedule 2. New Schedule 2 is inserted by regulation 6 of these Regulations.
Regulations 8 and 9 amend the Pension Schemes (Information Requirements – Qualifying Overseas Pension Schemes, Qualifying Recognised Overseas Pensions Schemes and Corresponding Relief) Regulations 2006 (“Information Regulations”). Those Regulations set out the information that the scheme manager of a qualifying recognised overseas pension scheme (“QROPS”) must provide to HMRC.
Regulation 8(2), (3) and (6) of these Regulations requires the scheme manager to provide information about the directors of the scheme manager and details relating to the relevant member. There are new time limits for the provision of information about payments from a QROPS (regulation 8(4) and (5)). Regulation 9 inserts new regulations 3A to 3C into the Information Regulations. New regulation 3A sets out the information that may be required by an officer of HMRC when there is a transfer of funds to a QROPS from a registered pension scheme or another QROPS. New regulations 3B and 3C set out information requirements relating to the cessation of the QROPS and changes to information previously given by the QROPS.
Regulation 12 makes amendments to the Registered Pension Schemes (Provision of Information) Regulations 2006. Those Regulations concern the provision of information by persons such as members and scheme administrators of registered pension schemes. Regulation 12 of these Regulations makes provision for the scheme administrator to provide the Commissioners with additional information where there is a “recognised transfer” of a pension fund to a QROPS. Regulation 13 specifies information that a member of a registered pension scheme must give to the scheme administrator when the member makes a request for a recognised transfer.
Regulation 15 makes amendments to the Registered Pension Schemes and Overseas Pension Schemes (Electronic Communication of Returns and Information) Regulations 2006. Schedule 1 to those Regulations specifies information that must be provided by approved electronic means. Schedule 2 specifies information which is allowed to be provided by such means.
Regulation 15(2) removes from the requirements of Schedule 1 returns and amendments to returns relating to a currently relieved non-UK pension scheme which are made under section 254 of the Finance Act 2004. It also removes from that Schedule event reports about recognised transfers. Regulation 15(3) inserts into Schedule 2 additional items which can be provided by approved electronic means. These items are an amendment to a return under section 250 of the Finance Act 2004 and an amendment to an event report under regulation 3(1) of the Information Regulations (other than an event report about a recognised transfer).
A Tax Information and Impact Note covering this instrument was published on 6th December 2011 alongside draft legislation and is available on the HMRC website at http://www.hmrc.gov.uk/thelibrary/tiins.htm. It remains an accurate summary of the impacts that apply to this instrument.
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