The Pension Schemes (Categories of Country and Requirements for Overseas Pension Schemes and Recognised Overseas Pension Schemes) Regulations 2006

Made: 1st February 2006

Laid before the House of Commons: 2nd February 2006

Coming into force: 6th April 2006

The Commissioners for Her Majesty's Revenue and Customs, in exercise of the powers conferred by section 150(7) and (8) of the Finance Act 2004 , and now exercisable by them , make the following Regulations:

Citation, commencement and interpretation

1

• (1) These Regulations may be cited as the Pension Schemes (Categories of Country and Requirements for Overseas Pension Schemes and Recognised Overseas Pension Schemes) Regulations 2006 and shall come into force on 6th April 2006.

• (2) In these Regulations a reference, without more, to a numbered section or Schedule is a reference to the section of, or Schedule to, the Finance Act 2004 which is so numbered.

Requirements of an overseas pension scheme

2

• (1) For the purposes of section 150(7) (meaning of overseas pension scheme) an overseas pension scheme must—

• (a) subject to paragraph (2A) satisfy the requirements in paragraphs (2) and (3); or

• (b) be established (outside the United Kingdom) by an international organisation for the purpose of providing benefits for, or in respect of, past service as an employee of the organisation ....

• (2) This paragraph is satisfied if—

• (a) the scheme is an occupational pension scheme and—

• (i) the scheme is regulated by a body in the country or territory in which the scheme is established that regulates occupational pension schemes, or

• (ii) there is no body in that country or territory that regulates occupational pension schemes;

• (b) the scheme is not an occupational pension scheme and the scheme is regulated by a body in the country or territory in which the scheme is established that regulates pension schemes that are not occupational pension schemes; or

• (c) the scheme is not an occupational pension scheme and—

• (i) there is no body in the country or territory in which the scheme is established that regulates pension schemes that are not occupational pension schemes, but

• (ii) the establishment of the scheme was regulated, and the provision of the scheme is regulated, by a body in that country or territory that regulates providers of pension schemes.

• (2A) An overseas public service pension scheme that falls within regulation 3(1B) is deemed to satisfy the requirements in paragraph (2).

• (3) This paragraph is satisfied if the scheme is recognised for tax purposes.

Condition 1The scheme is open to persons resident in the country or territory in which it is established.

Condition 2The scheme is established in a country or territory where there is a system of taxation of personal income under which tax relief is available in respect of pensions and—atax relief is not available to the member on contributions made to the scheme by the individual or, if the individual is an employee, by their employer, in respect of earnings to which benefits under the scheme relate; ...abthe scheme is liable to taxation on its income and gains and is of a kind specified in Schedule 1 to these Regulations; or ball or most of the benefits paid by the scheme to members who are not in serious ill-health are subject to taxation.For the purposes of this condition “tax relief” includes the grant of an exemption from tax.

Condition 3The scheme is approved or recognised by, or registered with, the relevant tax authorities as a pension scheme in the country or territory in which it is established.

...

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (5) In this regulation—

• “international organisation” means an organisation to which section 1 of the International Organisations Act 1968 applies by virtue of an Order in Council under subsection (1) of that section;

• “occupational pension scheme“ has the meaning given by section 150(5); and

• ...

Recognised overseas pension schemes: prescribed countries or territories and prescribed requirements

3

• (1) For the purposes of section 150(8) (recognised overseas pension schemes), in addition to satisfying the requirements set out in regulation 2 above, the pension scheme must—

• (a) except where it falls within paragraph (1A), satisfy the requirements in paragraphs (6) and (6A); and

• (b) satisfy ...the following requirements—

• (i) the requirement that the scheme must be established in a country or territory mentioned in paragraph (2), and

• (ii) for schemes established in Guernsey, the requirement in paragraph (4) .

• (iii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (1A) A pension scheme falls within this paragraph if it is an overseas public service pension scheme or if it falls within regulation 2(1)(b).

• (1B) A pension scheme is an “overseas public service pension scheme” for the purposes of paragraph (1A) and regulation 2(2A) if—

• (a) it is established in a country or territory outside the United Kingdom and is either—

• (i) so established by or under the law of that country or territory, or

• (ii) approved by the government of that country or territory; and

• (b) it is established for the purpose of providing benefits to individuals for or in respect of services rendered to that country or territory or any political subdivision or local authority thereof.

• (2) The countries and territories referred to in paragraph (1)(b)(i) are—

• (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (c) any country or territory in respect of which there is in force an Order in Council under section 173 of the Finance Act 2006 or section 2 of the Taxation (International and Other Provisions) Act 2010 giving effect in the United Kingdom to an agreement which contains provision about the exchange of information between the parties.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) At the time of the transfer of sums or assets which would, subject to these Regulations, constitute a recognised transfer, where the pension scheme is an exempt pension contract or an exempt pension trust within the meaning of section 157E of the Income Tax (Guernsey) Law, 1975, the scheme must not be open to non-residents of Guernsey.

• (4A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (6) Where tax relief in respect of benefits paid from the scheme is available to a member of the scheme who is not resident in the country or territory in which the scheme is established, the same or substantially the same tax relief must—

• (a) also be available to members of the scheme who are resident in the country or territory; and

• (b) apply regardless of whether the member was resident in the country or territory—

• (i) when the member joined the scheme; or

• (ii) for any period of time when they were a member of the scheme.

• (6A) The benefits payable to the member under the scheme, to the extent that they consist of the member’s relevant transfer fund or ring-fenced transfer funds—

• (a) are payable no earlier than they would be if pension rule 1 in section 165 applied; or

• (b) if payable earlier, are only payable in circumstances in which they would be authorised member payments if they were made by a registered pension scheme.

• (7) For the purposes of paragraph (6) “tax relief”—

• (a) is any tax relief that is available under the system of taxation of personal income in the country or territory in which the scheme is established; and

• (b) includes the grant of an exemption from tax other than an exemption which applies by virtue of double taxation arrangements.

• (8) In paragraph (7)(b) “double taxation arrangements” means arrangements made between the country or territory in which the scheme is established and another country or territory with a view to affording relief from double taxation.

Signed

David Varney — Steve Lamey — Two of the Commissioners for Her Majesty's Revenue and Customs — 2006-02-01

Explanatory note

(This note is not part of the Regulations)

Footnotes

[^f00001]: 2004 c. 12.

[^f00002]: ()The functions of the Commissioners of Inland Revenue (“the former Commissioners”), including those under which this instrument is made, were transferred to the Commissioners for Her Majesty’s Revenue and Customs (“the new Commissioners”) by section 5 of the Commissioners for Revenue and Customs Act 2005 (c. 12). Section 50 of that Act provides that a reference in any other enactment to the former Commissioners is to be construed as reference to the new Commissioners in so far as is appropriate in consequence of section 5.

[^f00003]: 1968 c. 48: section 1(1) was amended by section 1(1) of the International Organisations Act 1981 (c. 9).

[^f00004]: S.I. 2006/207.

[^f00005]: 1988 c. 1. Section 788 has been amended by paragraphs 1 and 2 of Schedule 30, and the relevant entry in Part II (13) of Schedule 40 to the Finance Act 2000 (c. 17), section 88 of the Finance Act 2002 (c. 23) and section 198 of the Finance Act 2003 (c. 14).

Editorial notes

[^c15406101]: 2004 c. 12.

[^c15406111]: ()The functions of the Commissioners of Inland Revenue (“the former Commissioners”), including those under which this instrument is made, were transferred to the Commissioners for Her Majesty's Revenue and Customs (“the new Commissioners”) by section 5 of the Commissioners for Revenue and Customs Act 2005 (c. 12). Section 50 of that Act provides that a reference in any other enactment to the former Commissioners is to be construed as reference to the new Commissioners in so far as is appropriate in consequence of section 5.

[^c15406121]: 1968 c. 48: section 1(1) was amended by section 1(1) of the International Organisations Act 1981 (c. 9).

[^key-93a17610844432aac6f7d23ab246ea5a]: Word in reg. 2(3) omitted (1.7.2007) by virtue of The Pension Schemes (Categories of Country and Requirements for Overseas Pension Schemes and Recognised Overseas Pension Schemes) (Amendment) Regulations 2007 (S.I. 2007/1600), regs. 1(1), 3(a)

[^key-66510949804a0ffc7edd5a1f9cab871a]: Words in reg. 2(3) inserted (1.7.2007) by The Pension Schemes (Categories of Country and Requirements for Overseas Pension Schemes and Recognised Overseas Pension Schemes) (Amendment) Regulations 2007 (S.I. 2007/1600), regs. 1(1), 3(b)

[^key-20796b1a8d8107b1ce169b15f0a98eee]: Sch. renumbered as Sch. 1 (6.4.2012) by The Registered Pension Schemes and Overseas Pension Schemes (Miscellaneous Amendments) Regulations 2012 (S.I. 2012/884), regs. 1(1), 5

[^key-781800ff3dc92caf7ca065d6ee3b8a23]: Words in reg. 2(3) substituted (6.4.2012) by The Registered Pension Schemes and Overseas Pension Schemes (Miscellaneous Amendments) Regulations 2012 (S.I. 2012/884), regs. 1(1), 3(2)(a)

[^key-462e01e2ef6d65de9744857ba338e45f]: Words in reg. 2(3) substituted (6.4.2012) by The Registered Pension Schemes and Overseas Pension Schemes (Miscellaneous Amendments) Regulations 2012 (S.I. 2012/884), regs. 1(1), 3(2)(b)

[^key-33b2dfe03152f121f4ade27d30466844]: Words in reg. 2(3) substituted (6.4.2012) by The Registered Pension Schemes and Overseas Pension Schemes (Miscellaneous Amendments) Regulations 2012 (S.I. 2012/884), regs. 1(1), 3(2)(c)

[^key-4c00f5a699b9acf5f88f8410dc2b6cc6]: Words in reg. 2(3) omitted (6.4.2012) by virtue of The Registered Pension Schemes and Overseas Pension Schemes (Miscellaneous Amendments) Regulations 2012 (S.I. 2012/884), regs. 1(1), 3(2)(d)

[^key-6fd0b3489b260b4bb40163ea5e1b1db8]: Words in reg. 3(2) substituted (6.4.2012) by The Registered Pension Schemes and Overseas Pension Schemes (Miscellaneous Amendments) Regulations 2012 (S.I. 2012/884), regs. 1(1), 4(b)(i)

[^key-4f1fd9657c0960354722e2e284f10b8f]: Reg. 3(5)-(8) inserted (6.4.2012) by The Registered Pension Schemes and Overseas Pension Schemes (Miscellaneous Amendments) Regulations 2012 (S.I. 2012/884), regs. 1(1), 4(d)

[^key-4e80e8b0a121417af7908cb3bf3539f5]: Word in reg. 3 heading substituted (25.5.2012) by The Pension Schemes (Categories of Country and Requirements for Overseas Pension Schemes and Recognised Overseas Pension Schemes) (Amendment) Regulations 2012 (S.I. 2012/1221), regs. 1, 2(2)(a)

[^key-e7881d342e9fe63c79efe4270ecee8ca]: Reg. 3(1)-(1B) substituted for reg. 3(1) (with effect in accordance with reg. 2 of the amending S.I.) by The Registered Pension Schemes and Overseas Pension Schemes (Miscellaneous Amendments) Regulations 2013 (S.I. 2013/2259), regs. 1, 8

[^key-59c9d181ec0bce249c6b1bdece71acad]: Words in reg. 3(1)(a) substituted (6.4.2015) by The Overseas Pension Schemes (Miscellaneous Amendments) Regulations 2015 (S.I. 2015/673), regs. 1, 3(a)

[^key-f5969ee374bb0f323740484c1b688f30]: Sch. 2 omitted (6.4.2017) by virtue of The Pension Schemes (Categories of Country and Requirements for Overseas Pension Schemes and Recognised Overseas Pension Schemes) (Amendments) Regulations 2017 (S.I. 2017/398), regs. 1, 5

[^key-cbe99452374be3050ca9afe8433a907a]: Reg. 2(2A) inserted (6.4.2017) by The Pension Schemes (Categories of Country and Requirements for Overseas Pension Schemes and Recognised Overseas Pension Schemes) (Amendments) Regulations 2017 (S.I. 2017/398), regs. 1, 3(c)

[^key-8eadd8d1495dbd089fca9b4ceed8ee87]: Words in reg. 2(1)(a) inserted (6.4.2017) by The Pension Schemes (Categories of Country and Requirements for Overseas Pension Schemes and Recognised Overseas Pension Schemes) (Amendments) Regulations 2017 (S.I. 2017/398), regs. 1, 3(a)(i)

[^key-20c45cc95f0122b94bf1d57997ee4904]: Words in reg. 2(1)(b) omitted (6.4.2017) by virtue of The Pension Schemes (Categories of Country and Requirements for Overseas Pension Schemes and Recognised Overseas Pension Schemes) (Amendments) Regulations 2017 (S.I. 2017/398), regs. 1, 3(a)(ii)

[^key-068cfdc3daeef9bc5c6d951b266fd7ce]: Reg. 2(4) omitted (6.4.2017) by virtue of The Pension Schemes (Categories of Country and Requirements for Overseas Pension Schemes and Recognised Overseas Pension Schemes) (Amendments) Regulations 2017 (S.I. 2017/398), regs. 1, 3(d)

[^key-0023c9992a97040a2c191927aed11596]: Words in reg. 2(5) omitted (6.4.2017) by virtue of The Pension Schemes (Categories of Country and Requirements for Overseas Pension Schemes and Recognised Overseas Pension Schemes) (Amendments) Regulations 2017 (S.I. 2017/398), regs. 1, 3(e)

[^key-a09a397333684217f93de7a1fb4c41b0]: Reg. 3(4) substituted (6.4.2017) by The Pension Schemes (Categories of Country and Requirements for Overseas Pension Schemes and Recognised Overseas Pension Schemes) (Amendments) Regulations 2017 (S.I. 2017/398), regs. 1, 4(e)

[^key-b07227b1d835b29b303840b803890416]: Reg. 3(4A) omitted (6.4.2017) by virtue of The Pension Schemes (Categories of Country and Requirements for Overseas Pension Schemes and Recognised Overseas Pension Schemes) (Amendments) Regulations 2017 (S.I. 2017/398), regs. 1, 4(f)

[^key-da89a26572eabea2361d481817158438]: Words in reg. 3(1B) inserted (6.4.2017) by The Pension Schemes (Categories of Country and Requirements for Overseas Pension Schemes and Recognised Overseas Pension Schemes) (Amendments) Regulations 2017 (S.I. 2017/398), regs. 1, 4(b)

[^key-8a8a76d7fcb08f7617d0892a957cac45]: Reg. 3(2)(c) substituted (6.4.2017) by The Pension Schemes (Categories of Country and Requirements for Overseas Pension Schemes and Recognised Overseas Pension Schemes) (Amendments) Regulations 2017 (S.I. 2017/398), regs. 1, 4(c)

[^key-fd225465cf5a45e3212aa713a0c7c5d7]: Reg. 3(5) omitted (6.4.2017) by virtue of The Pension Schemes (Categories of Country and Requirements for Overseas Pension Schemes and Recognised Overseas Pension Schemes) (Amendments) Regulations 2017 (S.I. 2017/398), regs. 1, 4(g)

[^key-6172b9cca76ceeafca102bccbffac0f9]: Reg. 3(6A) substituted (6.4.2017) by The Pension Schemes (Categories of Country and Requirements for Overseas Pension Schemes and Recognised Overseas Pension Schemes) (Amendments) Regulations 2017 (S.I. 2017/398), regs. 1, 4(h)

[^key-3e25af72be6c6f60f03157e97dfff73e]: Words in reg. 3(1)(b) omitted (6.4.2017) by virtue of The Pension Schemes (Categories of Country and Requirements for Overseas Pension Schemes and Recognised Overseas Pension Schemes) (Amendments) Regulations 2017 (S.I. 2017/398), regs. 1, 4(a)(i)

[^key-f8657e6bdeee69f10acaf3040ee4ab8b]: Words in reg. 3(1)(b)(ii) inserted (6.4.2017) by The Pension Schemes (Categories of Country and Requirements for Overseas Pension Schemes and Recognised Overseas Pension Schemes) (Amendments) Regulations 2017 (S.I. 2017/398), regs. 1, 4(a)(iii)(aa)

[^key-cf14f4704143aa4bee8a211d659dfaf7]: Word in reg. 3(1)(b)(i) inserted (6.4.2017) by The Pension Schemes (Categories of Country and Requirements for Overseas Pension Schemes and Recognised Overseas Pension Schemes) (Amendments) Regulations 2017 (S.I. 2017/398), regs. 1, 4(a)(ii)

[^key-e704c7427e1f078ec57932b2713a9a3d]: Full stop in reg. 3(1)(b)(ii) inserted (6.4.2017) by The Pension Schemes (Categories of Country and Requirements for Overseas Pension Schemes and Recognised Overseas Pension Schemes) (Amendments) Regulations 2017 (S.I. 2017/398), regs. 1, 4(a)(iii)(bb)

[^key-a8e2ba325e4d19f4853f18cd004e2e55]: Reg. 3(1)(b)(iii) omitted (6.4.2017) by virtue of The Pension Schemes (Categories of Country and Requirements for Overseas Pension Schemes and Recognised Overseas Pension Schemes) (Amendments) Regulations 2017 (S.I. 2017/398), regs. 1, 4(a)(iii)(bb)

[^key-69cc226701c3c87ce46f6766c502189e]: Reg. 3(3) omitted (6.4.2017) by virtue of The Pension Schemes (Categories of Country and Requirements for Overseas Pension Schemes and Recognised Overseas Pension Schemes) (Amendments) Regulations 2017 (S.I. 2017/398), regs. 1, 4(d)

[^key-1188da97b7bb4b82b11d63fbc5ba4a44]: Reg. 2(2)(a)-(c) substituted for reg. 2(2)(a)-(d) (6.4.2025) by Finance Act 2025 (c. 8), s. 33(2)(4)

[^key-fe77fceb3a6db41591bf71583be98601]: Reg. 3(2)(a) omitted (6.4.2025) by virtue of Finance Act 2025 (c. 8), s. 33(3)(4)

[^key-21797156101cfa87fbf027f547190d20]: Reg. 3(2)(b) omitted (6.4.2025) by virtue of Finance Act 2025 (c. 8), s. 33(3)(4)

SCHEDULE 1 — Specified Schemes

A complying superannuation plan as defined in section 995-1 (definitions) of the Income Tax Assessment Act 1997 of Australia .

SCHEDULE 2 — Specified Schemes

...