Taxation of Pensions Act 2014

• (3) In each of regulations 11(1)(a), 11A(1)(a) and 12(1)(c) (member must have reached 60 for certain payments by registered pension scheme to be authorised payments) for “the age of 60” substitute “ normal minimum pension age or the ill-health condition is met (see paragraph 1 of Schedule 28) ”.

• (4) The amendments made by sub-paragraphs (2) and (3)—

• (a) have effect for payments made on or after 6 April 2015, and

• (b) are to be treated as having been made by the Commissioners for Her Majesty's Revenue and Customs under the powers to make regulations conferred by section 164(1)(f) and (2) of FA 2004.

Trivial commutation lump sum death benefits

74

• (1) Paragraph 20 of Schedule 29 to FA 2004 (trivial commutation lump sum death benefit) is amended as follows.

• (2) In sub-paragraph (1) (definition) for the words from “if” to the end substitute “ if condition A or B is met. ”

• (3) After sub-paragraph (1) insert—

(1A) Condition A is that the lump sum— (a) is paid to a dependant entitled under the pension scheme to pension death benefit in respect of the member, and (b) extinguishes the dependant's entitlement under the pension scheme to pension death benefit and lump sum death benefit in respect of the member. (1B) Condition B is that— (a) the lump sum is paid after the member's death to an individual entitled to be paid a pension under the scheme— (i) which the member was entitled to be paid immediately before the member's death, and (ii) which is payable to the individual under pension rule 2 (see section 165), (b) if the pension is an annuity or scheme pension payable by an insurance company, the lump sum extinguishes all entitlements in respect of the member under the contract concerned, and (c) if the pension is a scheme pension payable by the scheme administrator, the lump sum extinguishes all entitlements to receive a scheme pension in respect of the member from the scheme administrator under pension rule 2.

• (4) In sub-paragraph (2) (excess over £18,000 not a trivial commutation lump sum death benefit) for “£18,000” substitute “ £30,000 ”.

• (5) In consequence of sub-paragraph (4), in Schedule 18 to FA 2011 omit paragraph 6(2).

• (6) The amendments made by this paragraph have effect in relation to lump sum death benefits paid on or after 6 April 2015.

Winding-up lump sum death benefit

75

• (1) In Schedule 29 to FA 2004 (authorised lump sums) omit paragraph 21 (which has come to have the effect that every winding-up lump sum death benefit is also a trivial commutation lump sum death benefit).

• (2) In consequence of sub-paragraph (1), in Schedule 18 to FA 2011 omit paragraph 7.

Early lifetime annuities

76

• (1) In paragraph 7 of Schedule 32 to FA 2004 (benefit crystallisation events 2 and 4: early lifetime annuities) after sub-paragraph (3) insert—

(4) Sub-paragraph (5) has effect for the purposes of benefit crystallisation event 2 as it applies in relation to the individual's becoming entitled to the lifetime annuity. (5) If the total of— (a) the sums applied to purchase the lifetime annuity and any related dependants' annuity, and (b) the market value, at the time they are applied, of the assets applied to make the purchase, is greater than the amount that would apart from this sub-paragraph be the amount crystallised by the event, that total is the amount crystallised by the event.

• (2) The amendment made by sub-paragraph (1) has effect in relation to a lifetime annuity if, applying the rule in section 165(3)(b) of FA 2004, the annuity is one to which an individual becomes entitled on or after 6 April 2015.

Individuals who on 5 April 2006 had actual right to payment of pensions

77

• (1) In paragraph 20(4)(a) and (b) of Schedule 36 to FA 2004 (lifetime allowance: deemed crystallisation: value of rights to pre-5 April 2006 drawdown pensions) before “the maximum” insert “ 80% of ”.

• (2) The amendment made by sub-paragraph (1) in relation to paragraph 20(4)(a) of that Schedule has effect where the benefit crystallisation event mentioned in the opening words of paragraph 20(2) of that Schedule occurs on or after 6 April 2015.

• (3) The amendment made by sub-paragraph (1) in relation to paragraph 20(4)(b) of that Schedule has effect where—

• (a) the benefit crystallisation event mentioned in the opening words of paragraph 20(2) of that Schedule occurs on or after 6 April 2015, and

• (b) section 165(3A) of FA 2004 first applied to the arrangement concerned in a drawdown pension year that began on or after 27 March 2014.

Transfers between schemes of funds held in respect of individual who has protected pension age

78

• (1) In Schedule 36 to FA 2004 after paragraph 23 insert—

(23ZA) (1) Sub-paragraph (2) applies if— (a) there is a recognised transfer from one registered pension scheme (“the old scheme”) to another registered pension scheme (“the new scheme”), and (b) as a result of paragraph 21 or the previous operation of sub-paragraph (2), immediately before the transfer this Part (except for section 218(6) and paragraph 19) applied in relation to all of the transferred sums or assets as if references to normal minimum pension age were to the member's protected pension age as defined by paragraph 22(8) or, as the case may be, paragraph 23(8). (2) This Part (except for section 218(6) and paragraph 19) applies in relation to— (a) the transferred sums or assets while held for the purposes of an arrangement under the new scheme, and (b) any sums or assets held for the purposes of 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 as defined by paragraph 22(8) or, as the case may be, paragraph 23(8). (3) Paragraphs 22(7)(a) and 23(7) have effect as if the benefits or pensions to which they refer do not include any that are in respect of sums or assets within sub-paragraph (2)(a) or (b) of this paragraph.

• (2) The amendment made by sub-paragraph (1) has effect in relation to recognised transfers made on or after 6 April 2015.

Power to make certain payments

79

In FA 2004 after section 273A insert—

(273B) (1) Subsection (2) applies to a payment by a registered pension scheme to or in respect of a person who is or has been a member of the scheme if it is paid in respect of a money purchase arrangement and is— (a) a payment of drawdown pension, (b) paid to purchase a short-term annuity, (c) a payment of dependants' drawdown pension, (d) paid to purchase a dependants' short-term annuity, (e) a payment of nominees' drawdown pension, (f) paid to purchase a nominees' short-term annuity, (g) a payment of successors' drawdown pension, (h) paid to purchase a successors' short-term annuity, (i) an uncrystallised funds pension lump sum, (j) a flexi-access drawdown fund lump sum death benefit, (k) a pension commencement lump sum where the person becomes entitled to it in connection with becoming entitled to income withdrawal (or where the person dies after becoming entitled to it but before becoming entitled to the income withdrawal in connection with which it was expected that the person would become entitled to the lump sum), or (l) a trivial commutation lump sum death benefit where condition B in paragraph 20(1B) of Schedule 29 is met. (2) The trustees or managers of the scheme may make the payment despite any provision of the rules of the scheme (however framed) prohibiting the making of the payment.

Temporary non-residence

80

ITEPA 2003 is amended as follows.

81

• (1) Section 579CA as substituted by paragraph 117 of Schedule 45 to FA 2013 (pensions under registered pension schemes: temporary non-residents) is amended as follows.

• (2) In subsection (2) (relevant withdrawals treated as accruing in the year of return from temporary non-residence) at the end insert

, but only if the total amount of— (a) the relevant withdrawals within subsection (3), and (b) the relevant withdrawals (as defined by section 576A(4)) within section 576A(3) for the same temporary period of non-residence, exceeds £100,000

.

• (3) For subsection (4) (meaning of “relevant withdrawal”) substitute—

(4) A “relevant withdrawal” is— (a) any income withdrawal paid to the person from a member's flexi-access drawdown fund in respect of an arrangement relating to the person under a registered pension scheme, (b) any dependants' income withdrawal paid to the person from a dependant's flexi-access drawdown fund in respect of an arrangement relating to the person under a registered pension scheme, (c) any nominees' income withdrawal paid to the person from a nominee's flexi-access drawdown fund in respect of an arrangement relating to the person under a registered pension scheme, (d) any successors' income withdrawal paid to the person from a successor's flexi-access drawdown fund in respect of an arrangement relating to the person under a registered pension scheme, (e) any payment to the person of a short-term annuity purchased using sums or assets out of a member's flexi-access drawdown fund in respect of an arrangement relating to the person under a registered pension scheme, (f) any payment to the person of a dependants' short-term annuity purchased using sums or assets out of a dependant's flexi-access drawdown fund in respect of an arrangement relating to the person under a registered pension scheme, (g) any payment to the person of a nominees' short-term annuity purchased using sums or assets out of a nominee's flexi-access drawdown fund in respect of an arrangement relating to the person under a registered pension scheme, (h) any payment to the person of a successors' short-term annuity purchased using sums or assets out of a successor's flexi-access drawdown fund in respect of an arrangement relating to the person under a registered pension scheme, (i) any uncrystallised funds pension lump sum paid to the person in respect of an arrangement relating to the person under a registered pension scheme, but only so far as section 579A applies in relation to the sum (see section 636A), (j) any income withdrawal, or dependants' income withdrawal, paid before 6 April 2015 to the person under a registered pension scheme in respect of an arrangement relating to the person under the scheme which at the time of the payment was an arrangement to which section 165(3A) or 167(2A) of FA 2004 applied (flexible drawdown arrangements), (k) any payment to the person of a lifetime annuity or dependants' annuity where— (i) the annuity is within paragraph 3(1A) or 17(1ZA), as the case may be, of Schedule 28 to FA 2004, (ii) the terms of the contract under which the annuity is paid are such that there will or could be decreases in the amount of the annuity other than decreases from time to time allowed by regulations under paragraph 3(1)(d) or 17(1)(c), as the case may be, of Schedule 28 to FA 2004 (and any such regulations are to be treated as having effect for this purpose), and (iii) the annuity is purchased using sums or assets held for the purposes of a registered pension scheme, or (l) any payment to the person of a scheme pension, or dependants' scheme pension, under a money purchase arrangement under a registered pension scheme where— (i) the person first acquired an actual (rather than a prospective) right to receive the scheme pension on or after 6 April 2015, (ii) when the person first acquired that actual right, fewer than 11 other individuals were entitled to the present payment of a scheme pension, or dependants' scheme pension, under the registered pension scheme, and (iii) the scheme pension is not payable under an annuity contract treated under section 153(8) or (8A) of FA 2004 as having become a registered pension scheme. (4A) For the purpose of determining whether the figure specified in subsection (2) is exceeded, any relevant withdrawal paid in a currency other than sterling is to be translated into sterling using the average exchange rate for the year ending with 31 March in the tax year in which the relevant withdrawal is paid.

• (4) In subsection (7) for the definition of “flexible drawdown arrangement” substitute—

“dependants' annuity”, “dependant's flexi-access drawdown fund”, “dependants' scheme pension”, “dependants' short-term annuity”, “lifetime annuity”, “member's flexi-access drawdown fund”, “money purchase arrangement”, “nominee's flexi-access drawdown fund”, “scheme pension”, “short-term annuity”, “successor's flexi-access drawdown fund” and “uncrystallised funds pension lump sum” have the same meaning as in Part 4 of FA 2004 (see section 152 of FA 2004 and paragraphs 2, 3, 6, 8A, 16 to 16C, 17, 20, 22A, 27E and 27K of Schedule 28, and paragraph 4A of Schedule 29, to FA 2004).

• (5) The amendments made by this paragraph come into force on 6 April 2015.

82

• (1) The version of section 579CA which has effect if the year of departure is the tax year 2012-13 or an earlier tax year (pensions under registered pension schemes: temporary non-residents) is amended as follows.

• (2) In subsection (1)—

• (a) for “income withdrawal or dependants' income withdrawal under the registered pension scheme” substitute “ relevant withdrawal paid to a person ”,

• (b) omit paragraph (a), and

• (c) at the end insert “ , but only if the total amount of the relevant withdrawals meeting those conditions, and the relevant withdrawals (as defined by section 576A(4A)) meeting the conditions in section 576A(1) for the same set of years of non-residence, exceeds £100,000 ”.

• (3) After subsection (3) insert—

(3A) A “relevant withdrawal”, in relation to a person, is— (a) any income withdrawal paid to the person from a member's flexi-access drawdown fund in respect of an arrangement relating to the person under a registered pension scheme, (b) any dependants' income withdrawal paid to the person from a dependant's flexi-access drawdown fund in respect of an arrangement relating to the person under a registered pension scheme, (c) any nominees' income withdrawal paid to the person from a nominee's flexi-access drawdown fund in respect of an arrangement relating to the person under a registered pension scheme, (d) any successors' income withdrawal paid to the person from a successor's flexi-access drawdown fund in respect of an arrangement relating to the person under a registered pension scheme, (e) any payment to the person of a short-term annuity purchased using sums or assets out of a member's flexi-access drawdown fund in respect of an arrangement relating to the person under a registered pension scheme, (f) any payment to the person of a dependants' short-term annuity purchased using sums or assets out of a dependant's flexi-access drawdown fund in respect of an arrangement relating to the person under a registered pension scheme, (g) any payment to the person of a nominees' short-term annuity purchased using sums or assets out of a nominee's flexi-access drawdown fund in respect of an arrangement relating to the person under a registered pension scheme, (h) any payment to the person of a successors' short-term annuity purchased using sums or assets out of a successor's flexi-access drawdown fund in respect of an arrangement relating to the person under a registered pension scheme, (i) any uncrystallised funds pension lump sum paid to the person in respect of an arrangement relating to the person under a registered pension scheme, but only so far as section 579A applies in relation to the sum (see section 636A), (j) any income withdrawal, or dependants' income withdrawal, paid before 6 April 2015 to the person under a registered pension scheme in respect of an arrangement relating to the person under the scheme which at the time of the payment was an arrangement to which section 165(3A) or 167(2A) of FA 2004 applied (flexible drawdown arrangements), (k) any payment to the person of a lifetime annuity or dependants' annuity where— (i) the annuity is within paragraph 3(1A) or 17(1ZA), as the case may be, of Schedule 28 to FA 2004, (ii) the terms of the contract under which the annuity is paid are such that there will or could be decreases in the amount of the annuity other than decreases from time to time allowed by regulations under paragraph 3(1)(d) or 17(1)(c), as the case may be, of Schedule 28 to FA 2004 (and any such regulations are to be treated as having effect for this purpose), and (iii) the annuity is purchased using sums or assets held for the purposes of a registered pension scheme, or (l) any payment to the person of a scheme pension, or dependants' scheme pension, under a money purchase arrangement under a registered pension scheme where— (i) the person first acquired an actual (rather than a prospective) right to receive the scheme pension on or after 6 April 2015, (ii) when the person first acquired that actual right, fewer than 11 other individuals were entitled to the present payment of a scheme pension, or dependants' scheme pension, under the registered pension scheme, and (iii) the scheme pension is not payable under an annuity contract treated under section 153(8) or (8A) of FA 2004 as having become a registered pension scheme. (3B) For the purpose of determining whether the figure specified at the end of subsection (1) is exceeded, any relevant withdrawal paid in a currency other than sterling is to be translated into sterling using the average exchange rate for the year ending with 31 March in the tax year in which the relevant withdrawal is paid.

• (4) In subsection (4) for “income withdrawal or dependants' income” substitute “ relevant ”.

• (5) In subsection (5) for the definition of “flexible drawdown arrangement” substitute—

“dependants' annuity”, “dependant's flexi-access drawdown fund”, “dependants' scheme pension”, “dependants' short-term annuity”, “lifetime annuity”, “member's flexi-access drawdown fund”, “money purchase arrangement”, “nominee's flexi-access drawdown fund”, “scheme pension”, “short-term annuity”, “successor's flexi-access drawdown fund” and “uncrystallised funds pension lump sum” have the same meaning as in Part 4 of FA 2004 (see section 152 of FA 2004 and paragraphs 2, 3, 6, 8A, 16 to 16C, 17, 20, 22A, 27E and 27K of Schedule 28, and paragraph 4A of Schedule 29, to FA 2004).

• (6) The amendments made by this paragraph come into force on 6 April 2015.

83

• (1) Section 576A as substituted by paragraph 116 of Schedule 45 to FA 2013 (pensions under relevant non-UK schemes: temporary non-residents) is amended as follows.

• (2) In subsection (2) (relevant withdrawals treated as accruing in the year of return from temporary non-residence) at the end insert

, but only if the total amount of— (a) the relevant withdrawals within subsection (3), and (b) the relevant withdrawals (as defined by section 579CA(4)) within section 579CA(3) for the same temporary period of non-residence, exceeds £100,000

.

• (3) For subsection (4) (meaning of “relevant withdrawal”) substitute—

(4) A “relevant withdrawal” is an amount paid under a relevant non-UK scheme that— (a) is paid to the person in respect of an arrangement relating to the person under the scheme and would, if the scheme were a registered pension scheme, be income withdrawal (within the meaning of paragraph 7 of Schedule 28 to FA 2004) paid to the person from the person's member's flexi-access drawdown fund in respect of the arrangement, (b) is paid to the person in respect of an arrangement relating to the person under the scheme and would, if the scheme were a registered pension scheme, be dependants' income withdrawal (within the meaning of paragraph 21 of Schedule 28 to FA 2004) paid to the person from the person's dependant's flexi-access drawdown fund in respect of the arrangement, (c) is paid to the person in respect of an arrangement relating to the person under the scheme and would, if the scheme were a registered pension scheme, be nominees' income withdrawal (within the meaning of paragraph 27D of Schedule 28 to FA 2004) paid to the person from the person's nominee's flexi-access drawdown fund in respect of the arrangement, (d) is paid to the person in respect of an arrangement relating to the person under the scheme and would, if the scheme were a registered pension scheme, be successors' income withdrawal (within the meaning of paragraph 27J of Schedule 28 to FA 2004) paid to the person from the person's successor's flexi-access drawdown fund in respect of the arrangement, (e) is a payment to the person of an annuity purchased using sums or assets held for the purposes of an arrangement relating to the person under the scheme and would, if the scheme were a registered pension scheme, be a payment of a short-term annuity (within the meaning of paragraph 6 of Schedule 28 to FA 2004) purchased using sums or assets out of the person's member's flexi-access drawdown fund in respect of the arrangement, (f) is a payment to the person of an annuity purchased using sums or assets held for the purposes of an arrangement relating to the person under the scheme and would, if the scheme were a registered pension scheme, be a payment of a dependants' short-term annuity (within the meaning of paragraph 20 of Schedule 28 to FA 2004) purchased using sums or assets out of the person's dependant's flexi-access drawdown fund in respect of the arrangement, (g) is a payment to the person of an annuity purchased using sums or assets held for the purposes of an arrangement relating to the person under the scheme and would, if the scheme were a registered pension scheme, be a payment of a nominees' short-term annuity (within the meaning of paragraph 27C of Schedule 28 to FA 2004) purchased using sums or assets out of the person's nominee's flexi-access drawdown fund in respect of the arrangement, (h) is a payment to the person of an annuity purchased using sums or assets held for the purposes of an arrangement relating to the person under the scheme and would, if the scheme were a registered pension scheme, be a payment of a successors' short-term annuity (within the meaning of paragraph 27H of Schedule 28 to FA 2004) purchased using sums or assets out of the person's successor's flexi-access drawdown fund in respect of the arrangement, (i) is paid before 6 April 2015 to the person in respect of an arrangement relating to the person under the scheme which at the time of the payment was an arrangement to which section 165(3A) or 167(2A) of FA 2004 (flexible drawdown arrangements) applied and would, if the scheme had been a registered pension scheme, have been income withdrawal or dependants' income withdrawal (within the meaning of paragraphs 7 and 21 of Schedule 28 to FA 2004), (j) is a payment to the person of an annuity purchased using sums or assets held for the purposes of an arrangement relating to the person under the scheme where— (i) the payment would, if the scheme were a registered pension scheme, be of a lifetime annuity or dependants' annuity within paragraph 3(1A) or 17(1ZA), as the case may be, of Schedule 28 to FA 2004, and (ii) the terms of the contract under which it is paid are such that there will or could be decreases in the amount of the annuity other than decreases which, if the scheme were a registered pension scheme, would be decreases from time to time allowed by regulations under paragraph 3(1)(d) or 17(1)(c), as the case may be, of Schedule 28 to FA 2004 (and any such regulations are to be treated as having effect for this purpose), or (k) is a payment to the person under a money purchase arrangement relating to the person under the scheme that, if the scheme were a registered pension scheme, would be a payment to the person of a scheme pension that the person would for the purposes of Part 4 of FA 2004 be treated as having become entitled to at a time on or after 6 April 2015 when fewer than 11 other individuals were entitled to present payment of a scheme pension under the scheme. (4A) For the purpose of determining whether the figure specified in subsection (2) is exceeded, any relevant withdrawal paid in a currency other than sterling is to be translated into sterling using the average exchange rate for the year ending with 31 March in the tax year in which the relevant withdrawal is paid.

• (4) In subsection (9)—

• (a) for the definition of “flexible drawdown arrangement” substitute—

“member's flexi-access drawdown fund” and “dependant's flexi-access drawdown fund” have the same meaning as in Part 4 of FA 2004 (see paragraphs 8A and 22A of Schedule 28 to FA 2004);

, and

• (b) after the definition of “remitted to the United Kingdom” insert—

“scheme pension” means a scheme pension within the meaning of paragraph 2 of Schedule 28 to FA 2004 or a dependants' scheme pension within the meaning of paragraphs 16 to 16C of that Schedule;

.

• (5) The amendments made by this paragraph come into force on 6 April 2015.

84

• (1) The version of section 576A which has effect if the year of departure is the tax year 2012-13 or an earlier tax year (pensions under relevant non-UK schemes: temporary non-residents) is amended as follows.

• (2) In subsection (1)—

• (a) for “non-UK income withdrawal under a relevant non-UK scheme” substitute “ withdrawal paid to a person ”,

• (b) omit paragraph (a), and

• (c) at the end insert “ , but only if the total amount of the relevant withdrawals meeting those conditions, and the relevant withdrawals (as defined by section 579CA(3A)) meeting the conditions in section 579CA(1) for the same set of years of non-residence, exceeds £100,000 ”.

• (3) In subsection (4) for “non-UK income withdrawal falling within subsection (1)” substitute “ withdrawal that meets the conditions in subsection (1)(b) and (c) ”.

• (4) After subsection (4) insert—

(4A) A “relevant withdrawal”, in relation to a person, is an amount paid under a relevant non-UK scheme that— (a) is paid to the person in respect of an arrangement relating to the person under the scheme and would, if the scheme were a registered pension scheme, be income withdrawal (within the meaning of paragraph 7 of Schedule 28 to FA 2004) paid to the person from the person's member's flexi-access drawdown fund in respect of the arrangement, (b) is paid to the person in respect of an arrangement relating to the person under the scheme and would, if the scheme were a registered pension scheme, be dependants' income withdrawal (within the meaning of paragraph 21 of Schedule 28 to FA 2004) paid to the person from the person's dependant's flexi-access drawdown fund in respect of the arrangement, (c) is paid to the person in respect of an arrangement relating to the person under the scheme and would, if the scheme were a registered pension scheme, be nominees' income withdrawal (within the meaning of paragraph 27D of Schedule 28 to FA 2004) paid to the person from the person's nominee's flexi-access drawdown fund in respect of the arrangement, (d) is paid to the person in respect of an arrangement relating to the person under the scheme and would, if the scheme were a registered pension scheme, be successors' income withdrawal (within the meaning of paragraph 27J of Schedule 28 to FA 2004) paid to the person from the person's successor's flexi-access drawdown fund in respect of the arrangement, (e) is a payment to the person of an annuity purchased using sums or assets held for the purposes of an arrangement relating to the person under the scheme and would, if the scheme were a registered pension scheme, be a payment of a short-term annuity (within the meaning of paragraph 6 of Schedule 28 to FA 2004) purchased using sums or assets out of the person's member's flexi-access drawdown fund in respect of the arrangement, (f) is a payment to the person of an annuity purchased using sums or assets held for the purposes of an arrangement relating to the person under the scheme and would, if the scheme were a registered pension scheme, be a payment of a dependants' short-term annuity (within the meaning of paragraph 20 of Schedule 28 to FA 2004) purchased using sums or assets out of the person's dependant's flexi-access drawdown fund in respect of the arrangement, (g) is a payment to the person of an annuity purchased using sums or assets held for the purposes of an arrangement relating to the person under the scheme and would, if the scheme were a registered pension scheme, be a payment of a nominees' short-term annuity (within the meaning of paragraph 27C of Schedule 28 to FA 2004) purchased using sums or assets out of the person's nominee's flexi-access drawdown fund in respect of the arrangement, (h) is a payment to the person of an annuity purchased using sums or assets held for the purposes of an arrangement relating to the person under the scheme and would, if the scheme were a registered pension scheme, be a payment of a successors' short-term annuity (within the meaning of paragraph 27H of Schedule 28 to FA 2004) purchased using sums or assets out of the person's successor's flexi-access drawdown fund in respect of the arrangement, (i) is paid before 6 April 2015 to the person in respect of an arrangement relating to the person under the scheme which at the time of the payment was an arrangement to which section 165(3A) or 167(2A) of FA 2004 (flexible drawdown arrangements) applied and would, if the scheme were a registered pension scheme, be income withdrawal or dependants' income withdrawal (within the meaning of paragraphs 7 and 21 of Schedule 28 to FA 2004), (j) is a payment to the person of an annuity purchased using sums or assets held for the purposes of an arrangement relating to the person under the scheme where— (i) the payment would, if the scheme were a registered pension scheme, be of a lifetime annuity or dependants' annuity within paragraph 3(1A) or 17(1ZA), as the case may be, of Schedule 28 to FA 2004, and (ii) the terms of the contract under which it is paid are such that there will or could be decreases in the amount of the annuity other than decreases which, if the scheme were a registered pension scheme, would be decreases from time to time allowed by regulations under paragraph 3(1)(d) or 17(1)(c), as the case may be, of Schedule 28 to FA 2004 (and any such regulations are to be treated as having effect for this purpose), or (k) is a payment to the person under a money purchase arrangement relating to the person under the scheme that, if the scheme were a registered pension scheme, would be a payment to the person of a scheme pension that the person would for the purposes of Part 4 of FA 2004 be treated as having become entitled to at a time on or after 6 April 2015 when fewer than 11 other individuals were entitled to present payment of a scheme pension under the scheme. (4B) For the purpose of determining whether the figure specified at the end of subsection (1) is exceeded, any relevant withdrawal paid in a currency other than sterling is to be translated into sterling using the average exchange rate for the year ending with 31 March in the tax year in which the relevant withdrawal is paid.

• (5) In each of subsections (5) to (7) omit “non-UK income”.

• (6) In subsection (8)—

• (a) for the definition of “flexible drawdown arrangement” substitute—

“member's flexi-access drawdown fund” and “dependant's flexi-access drawdown fund” have the same meaning as in Part 4 of FA 2004 (see paragraphs 8A and 22A of Schedule 28 to FA 2004);

,

• (b) omit the definition of “relevant non-UK income withdrawal”, and

• (c) before the definition of “year of non-residence” insert—

“scheme pension” means a scheme pension within the meaning of paragraph 2 of Schedule 28 to FA 2004 or a dependants' scheme pension within the meaning of paragraphs 16 to 16C of that Schedule;

.

• (7) The amendments made by this paragraph come into force on 6 April 2015.

Regulations about the effects of certain authorised payments

85

In section 164 of FA 2004 (authorised payments) after subsection (2) insert—

(3) The Commissioners for Her Majesty's Revenue and Customs may by regulations make provision— (a) having the effect that the making of a prescribed authorised payment does not (directly or indirectly) result in an individual first flexibly accessing pension rights for the purposes of sections 227B to 227F, (b) having the effect that the making of a prescribed authorised payment is not a relevant withdrawal for the purposes of section 579CA of ITEPA 2003, and (c) having the effect that the making of a prescribed payment by a pension scheme that is not a registered pension scheme, where the payment would be an authorised payment if the scheme were a registered pension scheme, is not a relevant withdrawal for the purposes of section 576A of ITEPA 2003. (4) In subsection (3)— - “authorised payment” means a payment specified in subsection (1), and - “prescribed” means prescribed in regulations under subsection (3).

Part 6 — Provision of information

86

The Registered Pension Schemes (Provision of Information) Regulations 2006 (S.I. 2006/567) are amended as follows.

87

After regulation 14 insert—

(14ZA) (1) If a relevant event (see paragraph (2)) occurs in relation to a member of a registered pension scheme, the scheme administrator— (a) must provide the member with a statement— (i) stating the date of the relevant event, and (ii) explaining the matters specified in paragraph (3), and (b) must do so before the end of the 31 days beginning with the date of the relevant event, but this is subject to paragraph (4). (2) For the purposes of this regulation— (a) if— (i) the member has a member's flexi-access drawdown fund in respect of an arrangement under the scheme, and (ii) the fund came into being as a result of sums or assets being designated on or after 6 April 2015 as available for the payment of drawdown pension, or as a result of the operation of paragraph 8D(2) of Schedule 28, a relevant event occurs when a qualifying payment is made to the member from the fund, (b) if— (i) the member has a member's drawdown pension fund in respect of an arrangement under the scheme, and (ii) the sums and assets that make up the fund become newly-designated funds by the operation of paragraph 8B of Schedule 28, a relevant event occurs when a qualifying payment is made to the member from the member's flexi-access drawdown fund in respect of the arrangement, (c) a relevant event occurs when an uncrystallised funds pension lump sum is paid to the member by the scheme, (d) if the member is entitled to payment of a lifetime annuity under a flexible annuity contract as defined by section 227G(8), a relevant event occurs when the first payment of the annuity is made, (e) if— (i) the member is entitled to payment of a scheme pension under a money purchase arrangement under the scheme, (ii) the member became entitled to the scheme pension on or after 6 April 2015, (iii) the member became entitled to the scheme pension at a time when fewer than 11 other individuals were entitled to the present payment of a scheme pension, or dependants' scheme pension, under the scheme, and (iv) the scheme pension is not payable under an annuity contract treated under section 153(8) or (8A) as having become a registered pension scheme, a relevant event occurs when the first payment of the scheme pension is made, and (f) a relevant event occurs when a stand-alone lump sum is paid on or after 6 April 2015 to the member by the scheme in circumstances where article 25B(2) of the Taxation of Pension Schemes (Transitional Provisions) Order 2006 applies. (3) The matters mentioned in paragraph (1)(a)(ii) are— (a) that a relevant event has occurred in relation to the member and that, as a result, the member has flexibly accessed the member's pension rights (although may have first done so previously), (b) that if in any tax year the total of the pension inputs to money purchase arrangements, and certain hybrid arrangements, relating to the member exceeds £10,000— (i) there will be an annual allowance tax charge on the excess, and (ii) the annual allowance for pension inputs to other arrangements relating to the member will be £10,000 less than it would otherwise be, and (c) the duties under regulation 14ZB and the circumstances in which the member will have to comply with them. (4) The scheme administrator is not required to comply with paragraph (1) in relation to the relevant event if— (a) the scheme administrator has complied with paragraph (1) in respect of an earlier relevant event, or (b) the scheme administrator is, at any time before complying with paragraph (1) in relation to the relevant event, informed— (i) by the member, or (ii) by the scheme administrator of another registered pension scheme, that the member flexibly accessed pension rights at a time before the relevant event occurred. (5) In this regulation, a reference to a qualifying payment from a fund is a reference to— (a) payment of income withdrawal from the fund, or (b) payment of a short-term annuity purchased using sums or assets out of the fund, but does not include payment at a time when the whole of the fund represents rights attributable to a disqualifying pension credit. (6) In paragraph (5) “disqualifying pension credit” is to be read in accordance with paragraph 2(3) and (4) of Schedule 29. (14ZB) (1) Paragraphs (3) and (4) apply if— (a) an individual receives a statement under regulation 14ZA from the scheme administrator of a registered pension scheme (the “flexed” registered pension scheme), and (b) on the date of the relevant event concerned, or at any later time, the individual is an accruing member (see paragraph (7)) of the flexed or any other registered pension scheme. (2) In this regulation— - “the relevant 13-week period” means the period of 91 days beginning with— 1. the date of receipt if the individual is an accruing member of any registered pension scheme on any day in the period— 1. beginning with the date of the relevant event concerned, and 2. ending with the date of receipt, or 2. if not, the first day after the date of receipt when the individual is an accruing member of a registered pension scheme, and - “the intervening period” means the period— 1. beginning with the date of the relevant event concerned, and 2. ending with the first day of the relevant 13-week period. (3) The individual must before the end of the relevant 13-week period— (a) pass on a copy of the statement, or (b) otherwise give notice— (i) of receipt of the statement, and (ii) of the date of the relevant event concerned or (if applicable) of its having occurred more than 2 years before the start of the relevant 13-week period, to the scheme administrator of each other registered pension scheme of which the individual is an accruing member on any day in the intervening period; but this is subject to paragraph (6). (4) Where, in the case of a particular registered pension scheme other than the flexed scheme, the individual is not an accruing member of that other scheme on any day in the intervening period but becomes an accruing member of that other scheme on a day ( “ the activation day ”) after the last day of that period, the individual must before the end of the 91 days beginning with the activation day— (a) pass on a copy of the statement, or (b) otherwise give notice— (i) of receipt of the statement, and (ii) of the date of the relevant event concerned or (if applicable) of its having occurred more than 2 years before the activation day, to the scheme administrator of that other scheme; but this is subject to paragraphs (5) and (6). (5) Paragraph (4) does not apply in connection with the individual becoming an accruing member of any particular scheme if the individual becomes an accruing member of that scheme upon or after becoming a member of that scheme as a result of a recognised transfer after the date of the relevant event concerned. (6) Paragraph (3) or (4), as the case may be, does not require the information concerned to be provided to the scheme administrator of a particular scheme if the individual has complied with regulation 14ZD(3) or (4) or 14ZE(3) or (4), or has previously complied with paragraph (3) or (4), in relation to the scheme administrator of that scheme. (7) For the purposes of this regulation, the individual is an accruing member of a registered pension scheme on any particular day if— (a) the individual is an active member of the scheme on that day as a result of there presently being arrangements for the accrual of benefits to or in respect of the individual under a cash balance arrangement or hybrid arrangement, or (b) a relevant contribution is made under the scheme on that day. (8) For the purposes of this regulation, a relevant contribution is made under a registered pension scheme if— (a) a relievable pension contribution is paid by or on behalf of the individual under a non-cash-balance money purchase arrangement relating to the individual under the scheme, (b) a contribution is paid in respect of the individual by an employer of the individual under a non-cash-balance money purchase arrangement relating to the individual under the scheme, or (c) a contribution— (i) paid under the scheme by an employer of the individual, and (ii) paid otherwise than in respect of any individual, becomes held for the purposes of a non-cash-balance money purchase arrangement relating to the individual under the scheme; and in this paragraph “non-cash-balance money purchase arrangement” means a money purchase arrangement other than a cash balance arrangement. (14ZC) (1) Paragraph (2) applies if— (a) in connection with a member of a registered pension scheme (“the transferring scheme”), there is a recognised transfer from the transferring scheme to another registered pension scheme (“the recipient scheme”), and (b) the scheme administrator of the transferring scheme has reason to believe that the member first flexibly accessed pension rights before the transfer. (2) The scheme administrator of the transferring scheme must provide the scheme administrator of the recipient scheme with a statement— (a) stating that the scheme administrator of the transferring scheme has reason to believe that the member first flexibly accessed pension rights before the transfer, and (b) specifying the date the scheme administrator of the transferring scheme understands to be the date when the member first flexibly accessed pension rights. (3) The requirement under paragraph (2) is to be complied with before— (a) the end of the 31 days beginning with the date of the transfer, or (b) if later, the end of the 31 days beginning with the date when the scheme administrator of the transferring scheme first has reason for the belief mentioned in paragraph (1)(b). (4) References in this regulation to an individual first flexibly accessing pension rights are to be read in accordance with section 227G. (14ZD) (1) Paragraphs (3) and (4) apply if— (a) at any time before 6 April 2015, section 165(3A) applied to an arrangement relating to an individual under a registered pension scheme (the “flexed” registered pension scheme), and (b) on or after 6 April 2015, the individual is an accruing member (see paragraph (9)) of the flexed or any other registered pension scheme. (2) In this regulation “the relevant 13-week period” means the period of 91 days beginning with— (a) 6 April 2015 if on that date the individual is an accruing member of any registered pension scheme, or (b) if not, the first day after 6 April 2015 when the individual is an accruing member of a registered pension scheme. (3) The individual must, before the end of the relevant 13-week period, provide the information specified in paragraph (5) to the scheme administrator of each registered pension scheme of which the individual is an accruing member on the first day of the relevant 13-week period; but this is subject to paragraphs (6) and (8). (4) Where, in the case of a particular registered pension scheme other than the flexed scheme, the individual is not an accruing member of that other scheme on the first day of the relevant 13-week period but becomes an accruing member of that other scheme on a day ( “ the activation day ”) after the first day of that period, the individual must, before the end of the 91 days beginning with the activation day, provide the information specified in paragraph (5) to the scheme administrator of that other scheme; but this is subject to paragraphs (7) and (8). (5) The information is that, as a result of section 227G(3), the individual is treated for the purposes of sections 227B to 227F as having first flexibly accessed pension rights at the start of 6 April 2015. (6) Paragraph (3) does not require that information to be provided to the scheme administrator of a particular scheme if, immediately before 6 April 2015, section 165(3A) applied to an arrangement relating to the individual under that scheme. (7) Paragraph (4) does not require that information to be provided to the scheme administrator of a particular scheme if the individual becomes an accruing member of that scheme upon or after becoming a member of that scheme as a result of a recognised transfer made to the scheme after 6 April 2015. (8) Paragraph (3) or (4), as the case may be, does not require that information to be provided to the scheme administrator of a particular scheme if the individual has complied with regulation 14ZB(3) or (4) or 14ZE(3) or (4), or has previously complied with paragraph (3) or (4), in relation to the scheme administrator of that scheme. (9) For the purposes of this regulation, the individual is an accruing member of a registered pension scheme on any particular day if— (a) the individual is an active member of the scheme on that day as a result of there presently being arrangements for the accrual of benefits to or in respect of the individual under a cash balance arrangement or hybrid arrangement, or (b) a relevant contribution is made under the scheme on that day. (10) For the purposes of this regulation, a relevant contribution is made under a registered pension scheme if— (a) a relievable pension contribution is paid by or on behalf of the individual under a non-cash-balance money purchase arrangement relating to the individual under the scheme, (b) a contribution is paid in respect of the individual by an employer of the individual under a non-cash-balance money purchase arrangement relating to the individual under the scheme, or (c) a contribution— (i) paid under the scheme by an employer of the individual, and (ii) paid otherwise than in respect of any individual, becomes held for the purposes of a non-cash-balance money purchase arrangement relating to the individual under the scheme; and in this paragraph “non-cash-balance money purchase arrangement” means a money purchase arrangement other than a cash balance arrangement. (14ZE) (1) Paragraphs (3) and (4) apply if— (a) under paragraph 8C of Schedule 28, the drawdown pension fund in respect of an arrangement relating to an individual under a registered pension scheme (the “flexed” registered pension scheme) becomes the individual's flexi-access drawdown fund in respect of the arrangement, and (b) on the conversion date, or at any later time, the individual is an accruing member (see paragraph (7)) of the flexed or any other registered pension scheme. (2) In this regulation “the relevant 13-week period” means the period of 91 days beginning with— (a) the conversion date if on that date the individual is an accruing member of any registered pension scheme, or (b) if not, the first day after that date when the individual is an accruing member of a registered pension scheme. (3) The individual must, before the end of the relevant 13-week period, inform the scheme administrator of each other registered pension scheme of which the individual is an accruing member on the first day of the relevant 13-week period— (a) of the conversion, and (b) of the conversion date or (if applicable) of the conversion's having occurred more than 2 years before the start of the relevant 13-week period; but this is subject to paragraph (6). (4) Where, in the case of a particular registered pension scheme other than the flexed scheme, the individual is not an accruing member of that other scheme on the first day of the relevant 13-week period but becomes an accruing member of that other scheme on a day ( “ the activation day ”) after the first day of that period, the individual must, before the end of the 91 days beginning with the activation day, inform the scheme administrator of that other scheme— (a) of the conversion, and (b) of the conversion date or (if applicable) of the conversion's having occurred more than 2 years before the activation day; but this is subject to paragraphs (5) and (6). (5) Paragraph (4) does not apply in connection with the individual becoming an accruing member of any particular scheme if the individual becomes an accruing member of that scheme upon or after becoming a member of that scheme as a result of a recognised transfer after the conversion date. (6) Paragraph (3) or (4), as the case may be, does not require the information concerned to be provided to the scheme administrator of a particular scheme if the individual has complied with regulation 14ZB(3) or (4) or 14ZD(3) or (4), or has previously complied with paragraph (3) or (4), in relation to the scheme administrator of that scheme. (7) For the purposes of this regulation, the individual is an accruing member of a registered pension scheme on any particular day if— (a) the individual is an active member of the scheme on that day as a result of there presently being arrangements for the accrual of benefits to or in respect of the individual under a cash balance arrangement or hybrid arrangement, or (b) a relevant contribution is made under the scheme on that day. (8) For the purposes of this regulation, a relevant contribution is made under a registered pension scheme if— (a) a relievable pension contribution is paid by or on behalf of the individual under a non-cash-balance money purchase arrangement relating to the individual under the scheme, (b) a contribution is paid in respect of the individual by an employer of the individual under a non-cash-balance money purchase arrangement relating to the individual under the scheme, or (c) a contribution— (i) paid under the scheme by an employer of the individual, and (ii) paid otherwise than in respect of any individual, becomes held for the purposes of a non-cash-balance money purchase arrangement relating to the individual under the scheme; and in this paragraph “non-cash-balance money purchase arrangement” means a money purchase arrangement other than a cash balance arrangement.

88

• (1) Regulation 14A (annual allowance: annual provision of information by scheme administrator to member) is amended as follows.

• (2) In paragraph (1) (duty to provide annual pension savings statement)—

• (a) in paragraph (b) at the beginning insert

either— (i)

,

• (b) in paragraph (b) at the end insert

or (ii) both of the conditions in paragraph (9) are met,

, and

• (c) after “containing the information” insert “ specified in paragraph (10) if the condition in sub-paragraph (b)(ii) is met but otherwise containing the information ”.

• (3) In the first sentence of paragraph (8) for “(1)” substitute “ (1)(a) ”.

• (4) After paragraph (8) insert—

(9) The conditions referred to in paragraph (1)(b)(ii) are as follows. - Condition D The scheme administrator has reason to believe that the member has first flexibly accessed pension rights for the purposes of sections 227B to 227F. - Condition E That the overall total of the following amounts is more than £10,000— 1. for each money purchase arrangement relating to the member under the scheme, the pension input amount for the relevant pension input period in respect of the arrangement, and 2. for each hybrid arrangement relating to the member under the scheme, the greater of such of input amounts A and B mentioned in section 237 as are, for the purposes of section 237, relevant input amounts for the relevant pension input period in the case of the arrangement. (10) The information is— (a) the total of— (i) the pension input amounts for the relevant pension input period in respect of each money purchase arrangement relating to the member under the scheme, and (ii) the pension input amounts for the relevant pension input period in respect of each hybrid arrangement under the scheme— (aa) that relates to the member, and (bb) for which the pension input amount for the relevant pension input period is input amount A or B mentioned in section 237, (b) the total of— (i) the pension input amounts for the relevant pension input period in respect of each defined benefits arrangement relating to the member under the scheme, and (ii) the pension input amounts for the relevant pension input period in respect of each hybrid arrangement under the scheme— (aa) that relates to the member, (bb) for which the pension input amount for the relevant pension input period is input amount C mentioned in section 237, and (cc) that is made before 14 October 2014 and has not become a hybrid arrangement (whether or not for the first time) on or after that day, (c) for each hybrid arrangement relating to the member under the scheme— (i) that is made on or after 14 October 2014 or has become a hybrid arrangement (whether or not for the first time) on or after that day, and (ii) for which the pension input amount for the relevant pension input period is input amount C mentioned in section 237, which of input amounts A, B and C mentioned in section 237 is a relevant input amount for the purposes of section 237 for the relevant pension input period in the case of the arrangement, and the amount of each of those input amounts that in the case of the arrangement is a relevant input amount for those purposes for that period, (d) the unadjusted alternative annual allowance for the relevant tax year, and the fact the member's money-purchase input sub-total for the relevant tax year will be tested against a £10,000 allowance, (e) the unadjusted alternative annual allowance for each of the three preceding tax years, and the fact that the member's money-purchase input sub-total for each of those preceding years will be tested against a £10,000 allowance or, if any of those preceding years is earlier than the tax year 2015-16, the annual allowance for each such earlier year, and (f) for each of those three preceding years, the information given in the pension savings statement for the pension input period ending in that year under, as the case may be, sub-paragraphs (a) to (c) or paragraph (2)(a). (11) If, in the case of a hybrid arrangement, input amount C mentioned in section 237— (a) is a relevant input amount for the purposes of section 237 for the relevant pension input period, and (b) is equal to— (i) input amount A or B mentioned in section 237 if that is the only other relevant input amount for the purposes of section 237 for that period, or (ii) the greater of input amounts A and B mentioned in section 237 if both are relevant input amounts for the purposes of section 237 for that period, the pension input amount in respect of the arrangement for that period is, for the purposes of paragraph (10), treated as being input amount A or B or, as the case may be, the greater of input amounts A and B (and, in either case, not input amount C). (12) In paragraph (10)(d) and (e) “the unadjusted alternative annual allowance”, in relation to a tax year, means the amount that would be the member's alternative annual allowance under section 227B(2) for that tax year if any increases under section 228A(2) (carry forward of unused allowance from preceding 3 years) are ignored.

89

In regulation 14B(1) (information mentioned in regulation 14A to be supplied by scheme administrator at member's request where no automatic duty to supply it) for “regulations 14A(2) or (7)” substitute “ regulation 14A(2), (7) or (10) ”.

90

• (1) The table in regulation 3(1) (provision of event reports by scheme administrators to HM Revenue and Customs) is amended as follows.

• (2) In column 1 of the entry for reportable event 22 (report where scheme administrator provides pension savings statement under regulation 14A(1)) after “14A(1)” insert “ containing the information specified in regulation 14A(2) ”.

• (3) After the entry for reportable event 22 insert—

23 Dual annual allowances	23 Dual annual allowances
The scheme administrator is required to provide a member with a pension savings statement under regulation 14A(1) containing the information specified in regulation 14A(10).	The tax year for which the statement is provided and the name and national insurance number of the member together with the information specified in regulation 14A(10)(a) and (b).

91

The amendments made by this Part of the Schedule—

• (a) come into force on 6 April 2015, and

• (b) are to be treated as having been made by the Commissioners for Her Majesty's Revenue and Customs under such of the powers cited in the instrument containing the Regulations as are applicable.

Part 7 — Overseas pensions

92

In section 169(4) of FA 2004 (regulations about the provision of information by scheme managers of schemes that are or have been qualifying recognised overseas pension schemes) before the “and” at the end of paragraph (b) insert—

(ba) give information of a prescribed description to the scheme manager of a QROPS or former QROPS, (bb) give information of a prescribed description to the scheme administrator of a registered pension scheme, (bc) give information of a prescribed description to a member, or former member, of the QROPS or former QROPS,

.

93

• (1) Section 251 of FA 2004 (regulations about the provision of information) is amended as follows.

• (2) In subsection (4)—

• (a) omit the “or” at the end of paragraph (a), and

• (b) after paragraph (b) insert—

(c) requiring scheme administrators of registered pension schemes to provide information of a prescribed description to scheme managers of qualifying recognised overseas pension schemes, or (d) requiring members or former members of a relevant non-UK pension scheme to provide information to the scheme administrators, or scheme managers, of registered pension schemes or other relevant non-UK pension schemes.

• (3) In subsection (6) at the end insert “ ; and “relevant non-UK scheme” has the meaning given by paragraph 1 of Schedule 34 ”.

94

In paragraph 5 of Schedule 33 to FA 2004 (conditions for scheme to be qualifying overseas pension scheme include condition that manager has undertaken to comply with prescribed benefit crystallisation information requirements) after sub-paragraph (2) insert—

(2A) In sub-paragraph (2) “information relating to events that are benefit crystallisation events”, in relation to any individuals, includes (in particular) information relating to occasions that are, or could (depending on their relative timing) be, the occasions on which the individuals first flexibly access pension rights for the purposes of sections 227B to 227F.

95

• (1) Schedule 34 to FA 2004 (application of certain tax charges to non-UK schemes) is amended as follows.

• (2) In paragraph 1(3) (list of “member payment charges”) before the “and” at the end of paragraph (d) insert—

(da) the charges under section 636A(1A) and (1B) of ITEPA 2003 (uncrystallised funds pension lump sums),

.

• (3) In paragraph 1(4)—

• (a) after “The “member payment provisions” are” insert

— (a)

, and

• (b) at the end insert

, and (b) section 636A(1A) to (1C) of ITEPA 2003.

• (4) After paragraph 5 insert—

(5A) (1) Sub-paragraph (2) applies if— (a) a payment is made (or treated by this Part as made) to or in respect of a relieved member or transfer member of a relevant non-UK scheme, and (b) there is an amount of tax under a member payment charge that would be payable in respect of the payment, or part of the payment, but for the operation of double taxation arrangements. (2) The payment or (as the case may be) that part of it— (a) is “pension” for the purposes of Chapter 4 of Part 9 of ITEPA 2003 (foreign pensions), and (b) is to be treated as included in the list, in section 576A of ITEPA 2003, of payments that are “relevant withdrawals” for the purposes of that section.

• (5) In paragraph 6 (tax under member payment charges to be reduced by foreign tax in respect of the payment concerned)—

• (a) in sub-paragraph (1) after “in consequence of paragraph 1” insert “ , or by virtue of the operation of Chapter 4 of Part 9 of ITEPA 2003 in consequence of paragraph 5A, ”, and

• (b) in sub-paragraph (2) after “in consequence of paragraph 1” insert “ or 5A ”.

• (6) In paragraph 7(2) (regulations modifying the application, in relation to relevant non-UK schemes, of the member payment provisions) after paragraph (b) insert—

(ba) contain transitional provisions and savings,

.

• (7) After paragraph 9 insert—

(9ZA) (1) For the purposes of determining the annual allowance charge in the case of an individual for a relevant tax year, a pension scheme is to be treated for the purposes of section 227G as a registered pension scheme if— (a) in relation to that tax year, or (b) in relation to any earlier tax year (whether or not a relevant tax year), the scheme is a currently-relieved non-UK pension scheme and the individual is a currently-relieved member of the scheme. (2) For the purposes of this paragraph, a tax year is a “relevant tax year” in relation to an individual if— (a) it is— (i) the first tax year in relation to which the individual is a currently-relieved member of any currently-relieved non-UK pension scheme, or (ii) if later, the tax year 2015-16, or (b) it is a tax year subsequent to the tax year identified under paragraph (a). (9ZB) (1) Sub-paragraph (2) has effect if at any particular time— (a) an individual is a transfer member of a relevant non-UK scheme, (b) the scheme is, or at any previous time has been, a qualifying recognised overseas pension scheme, and (c) the particular time is not in a tax year in relation to which the scheme is a currently-relieved non-UK pension scheme of which the individual is a currently-relieved member. (2) Section 227G applies in the individual's case as if the scheme, so far as relating to the individual's relevant transfer fund under the scheme, were a registered pension scheme at the particular time. (3) The reference in sub-paragraph (2) to the individual's relevant transfer fund under the relevant non-UK scheme is to be read in accordance with paragraph 4.

• (8) In paragraph 11 (calculating pension input amounts for certain non-UK money purchase arrangements) after sub-paragraph (2) insert—

(3) Where a calculation under section 233(1) as applied by paragraph 8 is being carried out for the purposes of section 227F(3) in respect of a period that ends at the end of a tax year (see paragraph 9 and section 227F(1)), the appropriate fraction for the purposes of sub-paragraph (1)(b) is the appropriate fraction given by sub-paragraph (2) for that tax year (even where the period in respect of which the calculation is being carried out is part only of that tax year).

• (9) In paragraphs 12(2) and 19(2) (regulations modifying the application, in relation to relevant non-UK schemes, of the annual allowance provisions and lifetime allowance provisions) before the “and” at the end of paragraph (b) insert—

(ba) contain transitional provisions and savings,

.

96

• (1) The Pension Schemes (Application of UK Provisions to Relevant Non-UK Schemes) Regulations 2006 (S.I. 2006/207) are amended as follows.

• (2) In regulation 5 (Part 4 of FA 2004 is modified in accordance with Part 3 of the Regulations) for “these Regulations” substitute “ this Part ”.

• (3) Regulation 15 (modifications of Schedule 29 to FA 2004 in its application to relevant non-UK schemes) is amended in accordance with sub-paragraphs (4) to (14).

• (4) In paragraph (2), in the inserted paragraph 1(4B), before the “and” at the end of paragraph (a) insert—

(aa) the referable portion of any previous uncrystallised funds pension lump sum paid to or in respect of the member by a recognised overseas pension scheme;

.

• (5) In paragraph (2), in the inserted paragraph 1(4C), before the “and” at the end of paragraph (a) insert—

(aa) the referable portion of any previous uncrystallised funds pension lump sum to which the member became entitled under a relevant non-UK scheme since the paragraph 15 BCE occurred;

.

• (6) In paragraph (3)(a), in the inserted definition of “RP”, after “any previous pension commencement lump sum” insert “ or previous uncrystallised funds pension lump sum ”.

• (7) In paragraph (3)(b), in the inserted paragraph 2(7ZA), after “to a pension commencement lump sum,” insert “ or to an uncrystallised funds pension lump sum, ”.

• (8) In paragraph (4)(b), in the inserted paragraph 4(6), before the “and” at the end of paragraph (a) insert—

(aa) the referable portion of any previous uncrystallised funds pension lump sum paid to or in respect of the member by a recognised overseas pension scheme;

.

• (9) In paragraph (4)(b), in the inserted paragraph 4(7), before the “and” at the end of paragraph (a) insert—

(aa) the referable portion of any earlier uncrystallised funds pension lump sum to which the member became entitled under a relevant non-UK scheme since the paragraph 15 BCE occurred;

.

• (10) After paragraph (4) insert—

(4A) In paragraph 4A (uncrystallised funds pension lump sums) after sub-paragraph (2) insert— (2A) In determining for the purposes of sub-paragraph (1)(b) whether all or part of the member's lifetime allowance is available— (a) disregard any amount treated as crystallising by virtue of a relevant BCE, and (b) the amount of the allowance available is reduced by the amount determined in accordance with sub-paragraph (2B) or (2C), as the case may require. (2B) Where benefit crystallisation event 8 has occurred, the member's lifetime allowance that is available is reduced by the aggregate of— (a) the referable portion of any previous pension commencement lump sum paid to or in respect of the member by a recognised overseas pension scheme, (b) the referable portion of any previous uncrystallised funds pension lump sum paid to or in respect of the member by a recognised overseas pension scheme, and (c) the referable portion of the amount which would have crystallised by virtue of the member becoming entitled to a pension, had the scheme paying it been a registered pension scheme and disregarding paragraph 2 of Schedule 32. (2C) Where the paragraph 15 BCE has occurred, the member's lifetime allowance that is available is reduced by the aggregate of— (a) the referable portion of any earlier pension commencement lump sum to which the member became entitled under a relevant non-UK scheme since the paragraph 15 BCE occurred, (b) the referable portion of any earlier uncrystallised funds pension lump sum to which the member became entitled under a relevant non-UK scheme since the paragraph 15 BCE occurred, and (c) in respect of any pension to which the member has become entitled since the paragraph 15 BCE occurred, the referable portion of the amount which would have crystallised by virtue of the member's becoming entitled to the pension, had the scheme paying it been a registered pension scheme and disregarding paragraph 2 of Schedule 32.

• (11) In paragraph (6), in the inserted paragraph 7(7), before the “and” at the end of paragraph (a) insert—

(aa) the referable portion of any previous uncrystallised funds pension lump sum paid to or in respect of the member by a recognised overseas pension scheme;

.

• (12) In paragraph (6), in the inserted paragraph 7(8), before the “and” at the end of paragraph (a) insert—

(aa) the referable portion of any earlier uncrystallised funds pension lump sum to which the member became entitled under a relevant non-UK scheme since the paragraph 15 BCE occurred;

.