Finance Act 2004

122A

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Grant of probate

Appeal against decision not to register

Grant of probate

Amendments to penalty regime

Certain receipts not to be tariff receipts

Chargeable consideration

Shared ownership leases

Charities relief

Charities relief

Assents and appropriations by personal representatives

Charities relief

Supplemental information

Assents and appropriations by personal representatives

Charities relief

Supplemental information

Duty of parties to notify HMRC of reference number etc

Enquiry following disclosure of client details

Legal professional privilege

Publication by HMRC

Exclusion of extended prescriptive period in Scotland

Duty of parties to notifiable arrangements to notify Board of number, etc.

Pre-disclosure enquiry

Exclusion of extended limitation period in England, Wales and Northern Ireland

Shared ownership leases

Legal professional privilege

Legal professional privilege

Duty of person dealing with promoter outside United Kingdom

Duty of parties to notifiable arrangements to notify Board of number, etc.

Exclusion of extended limitation period in England, Wales and Northern Ireland

Information to be provided in form and manner specified by Board

Part 7: commencement and savings

Exclusion of extended limitation period in England, Wales and Northern Ireland

Exclusion of extended prescriptive period in Scotland

Repeals

Transitional provision

79

Where a company carries forward to its first period of account beginning on or after 1st January 2005 an amount by way of—

• (a) management expenses brought forward under section 75 of the Taxes Act 1988,

• (b) losses brought forward under section 392B or 393 of that Act, or

• (c) non-trading deficits on loan relationships brought forward under section 83 of the Finance Act 1996,

that amount shall be translated into sterling using the London closing exchange rate for the last day of the previous period of account.

172A

• (1) Subsection (2) applies if a member of a registered pension scheme surrenders or agrees to surrender—

• (a) any benefit, other than an excluded pension, to which the member (or any dependant, nominee or successor of the member) has a prospective entitlement under an arrangement under the pension scheme,

• (aa) any rights to payments under a lifetime annuity or dependants' annuity, or nominees' annuity or successors' annuity, purchased by the application of sums or assets held for the purposes of the pension scheme, or

• (b) any right in respect of any sums or assets held for the purposes of any arrangement under the pension scheme.

• (2) The pension scheme is to be treated as making an unauthorised payment to the member.

• (3) Subsection (4) applies if a person surrenders or agrees to surrender—

• (a) any benefit, other than an excluded pension, to which the person has a prospective entitlement under an arrangement under the pension scheme in respect of a member of a pension scheme, or

• (b) any right in respect of any sums or assets held for the purposes of any arrangement relating to a member of the pension scheme under the pension scheme.

• (4) The pension scheme is to be treated as making an unauthorised payment to the person in respect of the member.

• (5) Subsections (2) and (4) do not apply to—

• (a) a surrender pursuant to a pension sharing order or provision,

• (b) a surrender (or agreement to surrender) by the member in return for the conferring on a dependant, or nominee, of an entitlement to benefits after the member's death,

• (ba) a surrender (or agreement to surrender) by a dependant, nominee or successor of the member (“the beneficiary”) in return for the conferring, on a successor of the member, of an entitlement to benefits after the beneficiary's death,

• (c) a transfer of (or agreement to transfer) benefits or rights so as to become benefits or rights under another arrangement under the pension scheme relating to the member, dependant, nominee or successor,

• (ca) a surrender of (or agreement to surrender) rights to payments under an annuity in any case covered by regulations under paragraph 3(2B) or 17(3) of Schedule 28;

• (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (da) a surrender made as part of a retirement-benefit activities compliance exercise,

• (db) a surrender of a prospective entitlement to pension death benefits within section 167(1) or lump sum death benefits within section 168(1) (or both) made in order to comply with Part 5 of the Equality Act 2010, so far as relating to age, or the Employment Equality (Age) Regulations (Northern Ireland) 2006 (or any regulations amending or replacing those Regulations)

• (e) a surrender (or agreement to surrender) which constitutes an assignment (or agreement to assign) within section 172, or

• (f) any surrender (or agreement to surrender) of a description prescribed by regulations made by the Board of Inland Revenue.

• (5A) Subsection (5)(b) applies only if the entitlement is held (or is to be held) by the dependant, or nominee, under an arrangement under the pension scheme relating to the member or dependant or nominee.

• (5B) Subsection (5)(ba) applies only if the entitlement is held (or is to be held) by the successor under an arrangement under the pension scheme relating to the beneficiary or successor.

• (6) Regulations under subsection (5)(f) may include provision having effect in relation to times before they are made.

• (7) Subsections (2) and (4) do not apply to the surrender of a benefit to which the member (or a dependant or nominee or successor of the member) has a prospective entitlement, or to which the person has a prospective entitlement in respect of a member, under an arrangement that is a defined benefits arrangement or cash balance arrangement unless—

• (a) in consequence of the surrender, the actual or prospective entitlement of another member (or dependant, or nominee or successor, of another member) of the pension scheme, or of another person in respect of another member, to benefits under the scheme is increased, and

• (b) the two members are or have been connected persons.

• (8) The amount of the unauthorised payment is the consideration that might be expected to be received if what is surrendered were assigned by a transaction between parties at arm's length and any power to reduce the entitlement to the benefit or right did not exist.

• (9) In this section “surrender”, in relation to any benefit or right of a member (or dependant of a member) of a pension scheme or other person, includes any schemes, arrangements or understandings of any kind (whether or not legally enforceable) the main purpose, or one of the main purposes, of which is to reduce the member's (or dependant's), or person's, entitlement to the benefit or right.

• (9A) References in this section to a benefit to which the member or a person has an entitlement under the pension scheme includes rights to payments under—

• (a) a scheme pension or dependants' scheme pension provided by the scheme administrator or as a result of the application of sums or assets held for the purposes of the pension scheme, or

• (b) a lifetime annuity or dependants' annuity, or nominees' annuity or successors' annuity, purchased by the application of sums or assets held for the purposes of the pension scheme.

• (10) For the purposes of this section an excluded pension is so much of any pension which under pension rule 2 may continue to be paid after the member's death as may be so paid.

• (10A) For the purposes of this section a surrender relating to an arrangement under the pension scheme (“the old arrangement”) is made as part of a retirement-benefit activities compliance exercise if—

• (a) it is made in connection with the making of an arrangement under another pension scheme relating to the member (“the new arrangement”),

• (b) the old arrangement and the new arrangement relate to the same employment,

• (c) both the rights surrendered and the rights conferred under the new arrangement consist of or include a prospective entitlement to pension death benefits within section 167(1) or lump sum death benefits within section 168(1) (or both),

• (d) the surrender and the making of the new arrangement constitute or form part of a transaction the purpose of which is to secure that the activities of the pension scheme are limited to retirement-benefit activities within the meaning of section 255 of the Pensions Act 2004 or Article 232 of the Pensions (Northern Ireland) Order 2005, and

• (e) the rights surrendered and the rights conferred under the new arrangement are not significantly different.

• (11) For the purposes of this section whether a person is connected with another person is determined in accordance with section 993 of ITA 2007.

172B

• (1) This section applies if—

• (a) at any time after the death of a relevant member of a registered pension scheme, there is an increase in the pension rights of another member of the pension scheme which is attributable to the death, and

• (b) the dead member and other member were connected persons immediately before the death.

• (2) A member of a registered pension scheme is a relevant member if, immediately before his death, any of his rights under the pension scheme are—

• (a) rights to benefit to which the member (or any dependant or nominee or successor of the member) has a prospective entitlement under an arrangement under the pension scheme,

• (aa) rights to payments under a scheme pension or dependants' scheme pension provided by the scheme administrator or as a result of the application of sums or assets held for the purposes of the pension scheme or under a lifetime annuity or dependants' annuity, or nominees' annuity or successors' annuity, purchased by the application of sums or assets held for the purposes of the pension scheme, ...

• (ab) rights representing the nominee's flexi-access drawdown fund or successor's flexi-access drawdown fund in respect of an arrangement under the pension scheme,

• (b) rights representing the member's drawdown pension fund or dependant's drawdown pension fund in respect of an arrangement under the pension scheme, or

• (c) rights representing the member's flexi-access drawdown fund or dependant's flexi-access drawdown fund in respect of an arrangement under the pension scheme.

• (3) There is at any time an increase in the pension rights of the other member of the pension scheme which is attributable to the death if—

• (a) the consideration which might be expected to be received in respect of an assignment (or assignation) of the benefits to which he has an actual or prospective entitlement under the pension scheme at that time, exceeds

• (b) the consideration which might be expected to be received in respect of such an assignment (or assignation) immediately before that time,

in consequence of the death (ignoring for the purposes of paragraphs (a) and (b) any power to reduce the entitlement to the benefits).

• (4) The pension scheme is to be treated as making an unauthorised payment to the other member (or to the other member's personal representatives) of an amount equal to the excess (but subject to subsection (5))).

• (5) The amount which would (apart from this subsection) constitute the unauthorised payment is to be reduced by so much of the excess as arises—

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

• (b) from the other member becoming entitled to pension death benefits or lump sum death benefits in respect of the dead member, or

• (c) in any manner prescribed by regulations made by the Board of Inland Revenue.

• (6) Regulations under subsection (5)(c) may include provision having effect in relation to times before they are made.

• (7) This section does not apply if—

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

• (b) the benefits to which each of at least 20 members of the pension scheme has an actual or prospective entitlement under the pension scheme are increased at the same rate in consequence of the death.

• (7A) This section does not apply if—

• (a) the increase mentioned in subsection (1)(a) is an increase in the rate of a dependants' annuity, nominees' annuity, successors' annuity or dependants' scheme pension or in rights representing a nominee's flexi-access drawdown fund, successor's flexi-access drawdown fund, dependant's drawdown pension fund or dependant's flexi-access drawdown fund, and

• (b) the increase is attributable to rights of the dead member to payments under a dependants' annuity, nominees' annuity, successors' annuity or dependants' scheme pension or rights representing a nominee's flexi-access drawdown fund, successor's flexi-access drawdown fund, dependant's drawdown pension fund or dependant's flexi-access drawdown fund.

• (7B) References in this section to a benefit to which the member or a person has an entitlement under the pension scheme includes rights to payments under—

• (a) a scheme pension or dependants' scheme pension provided by the scheme administrator or as a result of the application of sums or assets held for the purposes of the pension scheme, or

• (b) a lifetime annuity or dependants' annuity, or nominees' annuity or successors' annuity, purchased by the application of sums or assets held for the purposes of the pension scheme.

• (8) This section does not apply if the increase in the pension rights of the other member is brought about by an assignment (or agreement to assign) within section 172.

• (8A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (9) For the purposes of this section whether a person is connected with another person is determined in accordance with section 993 of ITA 2007.

172C

• (1) This section applies if—

• (a) contributions are paid under a registered pension scheme by an employer otherwise than in respect of any individual,

• (b) in any tax year any of the contributions become held for the purposes of the provision of benefits to or in respect of a member of the pension scheme under any relevant arrangement or arrangements (“the allocated contributions”),

• (c) the amount of the allocated contributions exceeds the permitted maximum, and

• (d) the member and the employer, or the member and any person connected with the employer at any time during the tax year, are connected persons at any time during the tax year.

• (2) An arrangement is a relevant arrangement if it is—

• (a) a money purchase arrangement that is not a cash balance arrangement or a collective money purchase arrangement, or

• (b) a hybrid arrangement under which the benefits that may be provided to or in respect of the member are, or include, money purchase benefits that are not cash balance benefits or collective money purchase benefits.

• (3) “The permitted maximum” is—

• (a) the maximum amount of relief to which the member is entitled under section 188 (relief for contributions) in respect of relievable pension contributions paid during the tax year (see section 190), less