The Pension Schemes (Information Requirements — Qualifying Overseas Pension Schemes, Qualifying Recognised Overseas Pensions Schemes and Corresponding Relief) 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 make the following Regulations in exercise of the powers conferred by section 169 of, and paragraph 5(2) of Schedule 33 and paragraph 51(4) of Schedule 36 to, the Finance Act 2004[^f00001] and which are now exercisable by them [^f00002].

Citation, commencement and interpretation

1

• (1) These Regulations may be cited as the Pension Schemes (Information Requirements for Qualifying Overseas Pension Schemes, Qualifying Recognised Overseas Pension Schemes and Corresponding Relief) Regulations 2006 and shall come into force on 6th April 2006.

• (2) In these Regulations—

• “the Act” means the Finance Act 2004 and a reference to a numbered section or Schedule, without more, is a reference to the section of; or Schedule to, the Act bearing that number; ...

• “available”: a reference to the amount of a member’s overseas transfer allowance that is available at any time is to the amount of that allowance that would be available if a transfer of the kind mentioned in section 244IA(1)(a) were made at that time;

• “block transfer” has the meaning given by section 244AB(2)(a);

• “HMRC” means the Commissioners for Her Majesty’s Revenue and Customs;

• “onward transfer” has the meaning given by section 244AB;

• “relevant benefit crystallisation event” has the same meaning as in section 637S of ITEPA 2003 (availability of individual’s lump sum and death benefit allowance);

• “relieved relevant non-UK scheme transfer” has the meaning given by section 244AB(1);

• “tax identification number” means—if the person is resident for tax purposes in the United Kingdom, the unique taxpayer reference (UTR) allocated to that person, andif the person is resident for tax purposes outside the United Kingdom, the unique taxpayer reference (UTR) allocated to that person or, if they do not have one, the reference number allocated to that person by the tax authority in the country or territory in which they are resident for tax purposes; and

• “tax year” means a period beginning on 6th April of one year and ending on 5th April of the immediately following year.

• “used up”, in relation to a transfer of the kind mentioned in section 244IA(1)(a), means the reduction caused by the transfer in the amount of the member’s overseas transfer allowance that would be available on the making of a subsequent transfer of that kind;

Information — benefit crystallisation events in relation to relevant migrant members and individuals entitled to corresponding relief

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• (1) For the purposes of paragraph 5(2) of Schedule 33 and paragraph 51(4) of Schedule 36 (information about relevant events in cases of relevant migrant members and individuals entitled to corresponding relief) the prescribed benefit crystallisation information is—

• (a) the name and address of the relevant migrant member or individual (as the case may be) in respect of whom there has been a relevant benefit crystallisation event in the tax year; and

• (b) the date, amount and nature of the relevant benefit crystallisation event.

• (2) The information must be provided by 31st January next following the end of the tax year in which the relevant benefit crystallisation event occurs.

Information — qualifying recognised overseas pension schemes

3

• (1) For the purposes of section 169(4) (information to be provided by a QROPS or former QROPS), the scheme manager of a QROPS must provide to HMRC—

• (a) the name and address of the scheme, the date of its establishment and the name of the country or territory in which it is established;

• (b) confirmation whether or not the scheme is regulated in the country or territory in which it is established and, if so, the name and address of the regulator and the reference number, if any, allocated by that regulator;

• (c) the name and address of the tax authority for the scheme in the country or territory in which it is established and the reference number, if any, allocated by that tax authority;

• (d) confirmation of the basis on which the scheme satisfies the requirements imposed by regulations 2 and 3 of the Pension Schemes (Categories of Country and Requirements for Overseas Pension Schemes and Recognised Overseas Pension Schemes) Regulations 2006;

• (e) if a scheme satisfies regulation 2(2) of those Regulations solely because it fulfils the requirement in regulation 2(2)(c)(ii), or if a scheme satisfies regulation 3(1)(b) of those Regulations solely because it fulfils the requirement in regulation 3(4), evidence demonstrating that it fulfils the requirement set out in paragraph (ii) or (4), as the case may be;

• (f) the name, address, contact details and legal status of the scheme manager; and

• (g) any information or evidence required in writing, at any time, by HMRC relating to any of the matters referred to in sub-paragraphs (a) to (f).

No information is required to be provided under sub-paragraph (c) if the scheme was established by 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.

• (1A) The information required under paragraph (1)(a) to (f) must be provided—

• (a) five years after the date of the HMRC letter advising the QROPS of the reference number that had been allocated to it, and

• (b) at the end of every succeeding period of five years.

This paragraph is subject to paragraph (1B).

• (1B) Where this paragraph applies to a QROPS, paragraph (1A) does not apply and the information required under paragraph (1)(a) to (f) must be provided on the dates notified to the QROPS by HMRC.

• (1C) Paragraph (1B) applies to a QROPS if—

• (a) the date of the HMRC letter advising the QROPS of the reference number that had been allocated to it was before 6 April 2011, and

• (b) less than fifteen years have passed since the date of that letter.

• (1D) Where paragraph (1A) or (1B) applies, the required information may be provided at any time during the six months prior to the end of each five year period or the notified dates, as the case may be.

• (2) When a QROPS or former QROPS makes, or is treated under the relevant provisions as making, a payment in respect of a relevant member, the scheme manager of the QROPS or former QROPS must provide to HMRC—

• (a) the name, principal residential address, date of birth, contact details, the national insurance number or, if they do not have one, the tax identification number, if any, of the relevant member and if the relevant member has ceased to be resident for tax purposes in the United Kingdom, the date that residence ceased;

• (b) the name, address and contact details of the QROPS or former QROPS and of the scheme manager;

• (c) the date, amount and nature of the payment and if as a result of the payment no relevant transfer fund remains and no ring-fenced transfer funds remain, a statement to that effect;

• (d) if the payment is made to a pension scheme, the name and address of the recipient and if the recipient is a registered pension scheme or a QROPS, the reference number allocated to that pension scheme by HMRC;

• (da) if the payment is made to a QROPS—

• (i) whether the overseas transfer charge arises on the payment and, if so, the amount of the member’s overseas transfer allowance that was available on the making of the transfer and whether under section 244AC or section 244IA,

• (ii) if the charge does arise, the transferred value and the amount of charge the scheme manager deducted from the payment before making it,

• (iii) if the charge does not arise, why it does not, ...

• (iiia) whether the payment is a transfer of the kind mentioned in section 244IA(1)(a) and, if so, the amount of the member’s overseas transfer allowance that was available on the making of the transfer and the amount of the member’s overseas transfer allowance used up by the transfer, and

• (iv) the total amount or value of the member's relevant transfer fund, and ring-fenced transfer funds, remaining immediately after the payment;

• (e) where the relevant member has died and the payment is made to an individual, the name, principal residential address, date of birth and the national insurance number or, if they do not have one, the tax identification number, if any, of that individual; and

• (f) where the relevant member has died and the payment is made to a person who is not an individual, the name and address of that person.

Here “the relevant provisions” means sections 172 to 174A, paragraph 2A of Schedule 28 and paragraph 3A of Schedule 29.

This paragraph is subject to the qualifications in paragraphs (3) and (4).

• (2A) Paragraphs (2B) and (2C) apply where—

• (a) a recognised transfer is made to a QROPS, or

• (b) an onward transfer is made by a QROPS or former QROPS.

• (2B) Where an event occurring before the end of the relevant period for the transfer (see the definition of “the relevant period” in section 244AB(1)) means that the transfer no longer counts as excluded from the overseas transfer charge or that entitlement to repayment under section 244M arises, the scheme manager of the QROPS or former QROPS must, within 90 days after the date the scheme manager is notified of the event, provide to HMRC notification of—

• (a) the occurrence, nature and date of the event,

• (b) the transferred value of the transfer,

• (ba) the amount of the member’s overseas transfer allowance that was available on the making of the transfer,

• (c) the amount of overseas transfer charge on the transfer,

• (d) whether, and to what extent, the scheme manager has accounted, or intends to account, for the charge, and

• (e) the total amount or value of the member's relevant transfer fund, and ring-fenced transfer funds, remaining immediately after the event.

This paragraph is subject to the qualification in paragraph (3A).

• (2C) Where the scheme manager of the QROPS or former QROPS becomes aware that the member has at any time in the relevant period for the transfer acquired a new residential address that is not—

• (a) in the country or territory in which the QROPS or former QROPS is established, ...

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

the scheme manager is to notify that address to HMRC within 3 months after the date on which the scheme manager becomes aware of it.

Notice in cases of serious prejudice to proper assessment or collection of tax

4

• (1) If an officer of Revenue and Customs has reasonable grounds for believing that the pension scheme in question—

• (a) has failed or may fail to comply with any of the requirements imposed upon it under or by virtue of regulation 2, and

• (b) such failure is likely to have led or to lead to serious prejudice to the proper assessment or collection of tax,

paragraph (2) applies.

• (2) If this paragraph applies, the officer may notify the pension scheme that he requires such information to be provided within 30 days of the issue of that notice, notwithstanding the provisions set out in regulation 2.

Signed

David Varney — Steve Lamey — Two of the Commissioners for Her Majesty’s Revenue and Customs — 1st February 2006

Explanatory note

(This note is not part of the Regulations)

Regulation 1 provides for the citation and commencement of these Regulations and the interpretation of terms used in them.

Regulation 2 prescribes information which a qualifying overseas pension scheme must provide to an officer of Revenue and Customs in order to be recognised as such and the time limit by which that information must be provided. It also prescribes information to be given to such an officer by the scheme manager of a pension scheme, where relief is given in respect of contributions made by an individual, under paragraph 51 of Schedule 36 to the Finance Act 2004 (c. 12).

Regulation 3 prescribes information which a qualifying recognised overseas pension scheme must provide to an officer of Revenue and Customs to be recognised as such, and the time limits by which that information must be provided.

Regulation 4 prescribes circumstances in which an officer of Revenue and Customs may require a pension scheme to provide the information prescribed in regulations 2 and 3 of these Regulations within 30 days of the issue of a notice, notwithstanding the time limits provided in those regulations.

The former Board of Inland Revenue published a regulatory impact assessment in respect of the provisions of Part 4 of the Finance Act 2004 and subordinate legislation under it, on 8 April 2004. The functions of the Board were transferred by section 5 of the Commissioners for Revenue and Customs Act 2005 to Her Majesty’s Revenue and Customs (“HMRC”). The assessment is available on the HMRC website at http://www.hmrc.gov.uk/ria/simplifying-pensions.pdf or (for hard copies) by writing to the Ministerial Correspondence Unit, 1st Floor Ferrers House, PO Box 38, Castle Meadow Road, Nottingham, NG2 1BB.

Footnotes

[^f00001]: 2004 c. 12.

[^f00002]: The functions of the Commissioners of Inland Revenue, including those under which this instrument is made, were transferred to the Commissioners for Her Majesty’s Revenue and Customs by section 5 of the Commissioners for Revenue and Customs Act 2005 (c. 11).Section 50 of that Act provides that insofar as it is appropriate in consequence of section 5 a reference, however expressed, to the Commissioners of Inland Revenue is to be read as a reference to the Commissioners for Her Majesty’s Revenue and Customs.

Editorial notes

[^key-8528ea0f0640b928b4b9cc2d83b15c46]: Reg. 3 in force at 6.4.2006, see reg. 1(1)

[^key-0bac111ef344ed38041aa4d2c851f3e6]: Reg. 1 in force at 6.4.2006, see reg. 1(1)

[^key-8ee473d6c453926c1656184f3b6ad199]: Reg. 4 in force at 6.4.2006, see reg. 1(1)

[^key-c6c388be9fbfa2c077802af4903b56fd]: Reg. 2 in force at 6.4.2006, see reg. 1(1)

[^key-d21e5adfe2b705a537f8cb9b8c4f5b53]: Regs. 3A-3C inserted (6.4.2012) by The Registered Pension Schemes and Overseas Pension Schemes (Miscellaneous Amendments) Regulations 2012 (S.I. 2012/884), regs. 1(1), 9

[^key-99feb20171974238afb98ca01158683b]: Reg. 3(5A) inserted (6.4.2012) by The Registered Pension Schemes and Overseas Pension Schemes (Miscellaneous Amendments) Regulations 2012 (S.I. 2012/884), regs. 1(1), 8(6)

[^key-61ea71e7bc38fd94a0caa3977fa02c38]: Reg. 3(7) inserted (with effect in accordance with reg. 1(2)(a) of the amending S.I.) by The Registered Pension Schemes and Overseas Pension Schemes (Miscellaneous Amendments) Regulations 2012 (S.I. 2012/884), regs. 1(1), 8(8)

[^key-f6e245ace8cc4e665f1236ee7f2fec7b]: Words in reg. 3(6) omitted (with effect in accordance with reg. 1(2)(a) of the amending S.I.) by virtue of The Registered Pension Schemes and Overseas Pension Schemes (Miscellaneous Amendments) Regulations 2012 (S.I. 2012/884), regs. 1(1), 8(7)

[^key-ec1c68a11f9a256c0abfce4ff6b67023]: Words in reg. 3(3) substituted (with effect in accordance with reg. 1(2)(a) of the amending S.I.) by The Registered Pension Schemes and Overseas Pension Schemes (Miscellaneous Amendments) Regulations 2012 (S.I. 2012/884), regs. 1(1), 8(4)

[^key-5a0dfa7d7fef47444624e5360afe1294]: Words in reg. 3(5) substituted (with effect in accordance with reg. 1(2)(a) of the amending S.I.) by The Registered Pension Schemes and Overseas Pension Schemes (Miscellaneous Amendments) Regulations 2012 (S.I. 2012/884), regs. 1(1), 8(5)