The Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) (No. 2) Regulations 2023

By virtue of regulation 2(2)(b), “benefits” provided by a pension scheme is to be construed in accordance with section 279(2) of FA 2004.

By virtue of regulation 2(2)(a), “voluntary contributions” has the same meaning as in Part 1 of PSPJOA 2022 (see section 110(1) of that Act).

By virtue of regulation 2(2)(b), the “pension input amount” of an arrangement is determined in accordance with section 229(2) of FA 2004. Section 229 was amended by paragraph 6 of Schedule 17 to FA 2011 (c. 11) and by paragraphs 7 and 8 of Schedule 4 to F(No. 2)A 2015 (c. 33).

By virtue of regulation 2(2)(b), “pension input period” is determined in accordance with sections 238 to 238ZB of FA 2004. Sections 238ZA and 238ZB were inserted by paragraph 3 of Schedule 4 to F(No. 2)A 2015 and amended by paragraph 16 of Schedule 17 to FA 2011 and paragraph 2 of Schedule 4 to F(No. 2)A 2015.

By virtue of regulation 2(2)(a), “the relevant Chapter 1 legacy scheme” has the same meaning as in Chapter 1 of Part 1 of PSPJOA 2022 (see section 4 of that Act).

By virtue of regulation 2(2)(b), “member” in relation to a pension scheme is defined in section 151 of FA 2004; and “deferred member” is defined in section 151(4). Section 151 was amended by paragraph 2 of Schedule 23 to FA 2006 (c. 25).

By virtue of regulation 2(2)(b), the “relevant rights” of an individual are defined in section 234(5C) of FA 2004. Section 234 of FA 2004 sets out how to calculate the pension input amount in respect of a defined benefits arrangement for any pension input period; in particular, how to determine whether there has been an increase in the value of the individual’s rights under the arrangement.

Section 11(7) of FA 2022 provides that “remediable service” means remediable service within the meaning of Chapter 1, 2 or 3 of Part 1 of PSPJOA 2022 (in this case, Chapter 1).

By virtue of regulation 2(2)(b), “pension commencement lump sum” is defined in paragraph 1 of Schedule 29 to FA 2004. Paragraph 1 was amended by paragraph 34 of Schedule 10 to FA 2005 (c. 7), paragraph 11(2) of Schedule 20 to FA 2007 (c. 11), paragraph 24(2) and paragraph 79(2) of Schedule 16 to FA 2011, section 51 of FA 2013 (c. 29), paragraph 21(2) of Schedule 5 to FA 2021 (c. 26) and section 24(7) of F(No. 2)A 2023.

By virtue of regulation 2(2)(b), “unauthorised payment” is defined in section 160(5) of FA 2004.

By virtue of regulation 2(2)(a), “judicial scheme” has the same meaning as in Chapter 2 of Part 1 of PSPJOA 2022 (see section 70(1) of that Act).

By virtue of regulation 2(2)(b), “pension credit” and “pension debit” are defined in section 279(1) of FA 2004. Section 279 was relevantly amended by paragraphs 456 and 480 of Schedule 3 to the Income Tax Act 2007 (c. 3).

By virtue of regulation 2(2)(a), “judicial 2015 scheme” has the same meaning as in Chapter 2 of Part 1 of PSPJOA 2022 (see section 70(2) of that Act).

Subsection (5A) of section 236 of FA 2004 was inserted by S.I. 2015/80.

Section 233 of FA 2004 was amended by section 52 of FA 2013 and by S.I. 2015/80.

By virtue of regulation 2(2)(a), section 5(7) of PSPJOA 2022 specifies when a person’s opted-out service will be “relevant” in relation to a Chapter 1 legacy scheme. Section 36 of PSPJOA 2022 determines whether any continuous period of service of a person in an employment or office will be “opted-out service” in that employment or office.

By virtue of regulation 2(2)(a), “relevant rectification provision” is defined in regulation 2(1) of the 2023 Regulations.

By virtue of regulation 2(2)(a), “RPS(AP)R 2009” means the Registered Pension Schemes (Authorised Payments) Regulations 2009 (S.I. 2009/1171) (see regulation 2(1) of the 2023 Regulations). Regulations 11 and 12 of RPS(AP)R 2009 were amended by section 42(6) of FA 2014 (c. 26), paragraph 73(1) and (3) of Schedule 1 to the Taxation of Pensions Act 2014 (c. 30), and by S.I. 2011/1751.

Section 164 of FA 2004 was amended by paragraph 6(a) to (c) of Schedule 23 to FA 2006, paragraph 1(1) and (2) of Schedule 29 to FA 2008 (c. 9), section 75(2)(a) of FA 2009 (c. 10), paragraphs 62 and 63 of Schedule 16 to FA 2011, paragraph 85 of Schedule 1 to the Taxation of Pensions Act 2014 and paragraph 3(1)(a) of Schedule 6 to FA 2016 (c. 24).

By virtue of regulation 2(2)(b), “trivial commutation lump sum” is defined in paragraph 7 of Schedule 29 to FA 2004. Paragraph 7 was amended by paragraphs 23 and 29 of Schedule 16 to FA 2011, section 42(1) of FA 2014, paragraph 71 of Schedule 1 to the Taxation of Pensions Act 2014 and paragraph 7 of Schedule 5 to FA 2016.

By virtue of regulation 2(2)(b), “pension scheme” is defined in section 150(1) of FA 2004.

2003 c. 1. In these Regulations, “ITEPA 2003” is defined as the Income Tax (Earnings and Pensions) Act 2003 by section 103 of FA 2022 (and “ITEPA 2003” has the same meaning in these footnotes). Chapter 15A (applying to lump sums paid under a registered pension scheme) was inserted into Part 9 of ITEPA 2003 by paragraph 11 of Schedule 31 to FA 2004 and amended by paragraph 59 of Schedule 10 to FA 2005, paragraph 28 of Schedule 19 and paragraph (1) of Schedule 27 to FA 2007, paragraph 42 of Schedule 16 to FA 2011, paragraph 5(3) of Schedule 5 to FA 2014, paragraphs 31 and 62 of Schedule 1, and paragraph 19(3) of Schedule 2, to the Taxation of Pensions Act 2014, section 22 of F(No. 2)A 2015, paragraphs 2 and 8 of Schedule 5 to FA 2016, and by S.I. 2006/569 and S.I. 2006/572.

By virtue of regulation 2(2)(b), “trivial commutation lump sum death benefit” is defined in paragraph 20 of Schedule 29 to FA 2004. Paragraph 29 was amended by paragraph 6 of Schedule 18 to FA 2011 and paragraph 74 of Schedule 1 to the Taxation of Pensions Act 2014.

By virtue of regulation 2(2)(b), “dependants’ scheme pension” is defined in paragraph 16 of Schedule 28 to FA 2004.

By virtue of regulation 2(2)(a), “local government new scheme” has the same meaning as in Chapter 3 of Part 1 of PSPJOA 2022 (see section 86(2) of that Act).

Chapter 5A (applying to pensions paid under a registered pension scheme) was inserted into Part 9 of ITEPA 2003 by paragraph 6 of Schedule 36 to FA 2004 and amended by paragraph 22 of Schedule 16 to FA 2011, paragraph 117 of Schedule 45 to FA 2013, paragraphs 81 and 82 of Schedule 1, and paragraph 25 of Schedule 2, to the Taxation of Pensions Act 2014, paragraph 23 of Schedule 4 to FA 2015 (c. 11) and section 22(6) and (7) of F(No. 2)A 2015.

Paragraph 15 of Schedule 28 to FA 2004 was amended by paragraph 26 of Schedule 10 to FA 2005, paragraph 6(2) of Schedule 5 to FA 2016, and by S.I. 2005/3229.

By virtue of regulation 2(2)(b), “scheme pension” is defined in paragraph 2 of Schedule 28 to FA 2004.

Paragraph 2 of Schedule 28 was amended by paragraph 64(1) of Schedule 10, and Part 4 of Schedule 11, to FA 2005, paragraph 20 of Schedule 23 to FA 2006, paragraphs 7(1) and (2) and 24(3) of Schedule 20 to FA 2007, section 20(1) to (4) of FA 2016, and by S.I. 2007/493.

By virtue of regulation 2(2)(b), “defined benefits lump sum death benefit” is defined in paragraph 13 of Schedule 29 to FA 2004. Paragraph 13 was amended by paragraph 33 of Schedule 16 to FA 2011 and section 21(8) of F(No. 2)A 2015.

Paragraph 16 of Schedule 32 was amended by paragraph 19(2) of Schedule 2 to the Taxation of Pensions Act 2014 and section 21(7) of F(No. 2)A 2015.

By virtue of regulation 2(2)(b), events which are “benefit crystallisation events” in relation to an individual, and the amount which is crystallised by each of those events, are set out in section 216 of, and Schedule 32 to, FA 2004. Relevant amendments have been made to those provisions by paragraphs 8(2) to (6), 43(2) to (8) and 64(1) of Schedule 10 to FA 2005, paragraph 30 of Schedule 23 to FA 2006, section 92 of, and paragraphs 1, 5, 7, 8 and 10 of Schedule 29 to, FA 2008, paragraphs 43, 44, 62, 65, 73 and 80 of Schedule 16 to FA 2011, paragraphs 16, 26, 27, 61 and 76 of Schedule 1, and paragraphs 19(2), 21 and 24(1) to (3) of Schedule 2, to the Taxation of Pensions Act 2014, paragraphs 4 and 7(b) to (d) of Schedule 4 to FA 2015, section 21(7) of F(No 2)A 2015, paragraph 18 of Schedule 4 to FA 2017 (c. 10) and section 24(8) of F(No. 2)A 2023.

By virtue of regulation 2(2)(b), “lifetime allowance excess lump sum” is defined in paragraph 11 of Schedule 29 to FA 2004.

By virtue of regulation 2(2)(b), “lifetime allowance” is defined in section 218 of FA 2004. Section 218 was amended by paragraph 2 of Schedule 18 to FA 2011, section 48(1) to (3) of, and paragraph 6 of Schedule 22 to, FA 2013, section 19(1) to (5) of FA 2016 and section 19 of F(No. 2)A 2023.

By virtue of regulation 2(2)(b), “unauthorised member payment” is defined in section 160(2) of FA 2004, which was relevantly amended by paragraph 3 of Schedule 23 to FA 2006.

By virtue of regulation 2(2)(b), “scheme chargeable payment”, in relation to a registered pension scheme, is defined in section 241 of FA 2004. Section 241 was amended by paragraph 9 of Schedule 21 to FA 2006 and paragraphs 62 and 74 of Schedule 16 to FA 2011.

By virtue of regulation 2(2)(b), “scheme administrator” must be construed in accordance with section 270 of FA 2004 (but see also sections 271 to 274 of that Act).

By virtue of regulation 2(2)(b), “scheme sanction charge” is defined in section 239 of FA 2004. Section 239 was amended by paragraph 8 of Schedule 21 to FA 2006, paragraphs 119 and 130 of Schedule 46 to FA 2013 and paragraph 12(1) and (2) of Schedule 5 to FA 2014.

“Pension scheme tax reference number” refers to the unique number given by HMRC to a pension scheme upon registration (see section 153(5) of FA 2004). Section 153 was amended by paragraphs 2 and 3 of Schedule 10 to FA 2005, paragraph 2 of Schedule 7 to FA 2014 and paragraph 1(1) and (3) of Schedule 3 to FA 2018 (c. 3).

By virtue of regulation 2(2)(a), “RPS(PI)R 2006” means the Registered Pension Schemes (Provision of Information) Regulations 2006 (S.I. 2006/567): see regulation 2(1) of the 2023 Regulations. RPS(PI)R 2006 have been relevantly amended by paragraphs 35(2) and 90 of Schedule 1 to the Taxation of Pensions Act 2014, paragraph 24 of Schedule 4 to FA 2016, paragraph 24(2) and (3) of Schedule 4 to FA 2017, and by S.I. 2006/1961, S.I. 2008/720, S.I. 2011/301, S.I. 2011/1797, S.I. 2012/884, S.I. 2013/1742, S.I. 2014/1843, S.I. 2015/606, S.I. 2018/5 and S.I. 2022/392.

By virtue of regulation 2(2)(b), “serious ill-health lump sum” is defined in paragraph 4 of Schedule 29 to FA 2004. Paragraph 4 was amended by paragraphs 23 and 28 of Schedule 16 to FA 2011 and paragraph 1(1) and (3) to (5) of Schedule 5 to FA 2016.

By virtue of regulation 2(2)(b), “active member” is defined in section 151(2) of FA 2004.

By virtue of regulation 2(2)(b), “pensioner member” is defined in section 151(3) of FA 2004.

By virtue of regulation 2(2)(a), “2015 scheme election” has the same meaning as in Chapter 2 of Part 1 of PSPJOA 2022 (see section 44 of that Act).

Paragraph 12 of Schedule 36 was amended by paragraph 53(2) to (6) of Schedule 10 to FA 2005, paragraph 17(2) to (9) of Schedule 20 to FA 2007, paragraph 432(2) of the Corporation Tax Act 2010 (c. 4), paragraph 59 of Schedule 26 to the Equality Act 2010 (c. 15) and section 23(2) of F(No. 2)A 2023.

Paragraph 14 of Schedule 18 was amended by section 47(2) of FA 2013 and section 23(5) of F(No. 2)A 2023, and by S.I. 2013/1740.

Paragraph 1 of Schedule 22 was amended by section 23(6) of F(No. 2)A 2023.

By virtue of regulation 2(2)(b), “annual allowance charge” means the charge to income tax arising under section 227 of FA 2004. Section 227 was amended by paragraph 15 of Schedule 2 to FA 2009, paragraph 45(1) of Schedule 16, and paragraph 3 of Schedule 17, to FA 2011, paragraphs 63 and 66(2) of Schedule 1 to the Taxation of Pensions Act 2014, paragraph 11 of Schedule 4 to F(No. 2)A 2015, and by S.I. 2017/468 and S.I. 2019/201.

By virtue of regulation 2(2)(b), “unauthorised payments charge” means the charge to income tax arising under section 208 of FA 2004. Section 208 was amended by paragraph 14 of Schedule 23 to FA 2006, paragraph 12 of Schedule 2 to FA 2009 and paragraph 125 of Schedule 46 to FA 2013.

By virtue of regulation 2(2)(b), “unauthorised payments surcharge” means the charge to income tax arising under section 209 of FA 2004. Section 209 was amended by paragraph 13 of Schedule 2 to FA 2009, paragraph 126 of Schedule 46 to FA 2013, and by S.I. 2006/569.

Section 2(1) of PSPJOA 2022 comes into force, so far as it applies for the purposes of Chapter 1 of that Act, in relation to a Chapter 1 scheme within section 33(2)(a) or (b) or (3)(a) or (b) of the Act on 1 October 2023: see section 131(2) of that Act.

By virtue of regulation 2(2)(a), “HMRC” is defined in regulation 2(1) of the 2023 Regulations as His Majesty’s Revenue and Customs.

S.I. 2006/567. Regulation 14(1) was amended by S.I. 2008/720.

By virtue of regulation 2(2)(a), “TMA 1970” in these regulations means the Taxes Management Act 1970 (c. 9) (and “TMA 1970” has the same meaning in these footnotes). Subsections (5) to (7) of section 118 of TMA 1970 were inserted by paragraph 15 of Schedule 39 to FA 2008.

By virtue of regulation 2(2)(b), “unauthorised member payment” is defined in section 160(2) of FA 2004. Section 160 was amended by paragraph 3 of Schedule 21, and paragraph 3 of Schedule 23, to FA 2006 and paragraph 5 of Schedule 20 to FA 2007.

Paragraph 7 of Schedule 1A to TMA 1970 was amended by paragraph 10 of Schedule 29 to the Finance Act 2001 (c. 9) and by S.I. 2009/56.

Section 264 of FA 2004 was amended by paragraph 23(d) of Schedule 7 to FA 2014.

2009 c. 10. Section 101 of FA 2009 was amended by paragraphs 2 and 14 of Schedule 9 to the Finance (No. 3) Act 2010 (c. 33) (referred to in these footnotes as “F(No. 3)A 2010”), paragraph 20(2) of Schedule 22 to FA 2014 and paragraph 116 of Schedule 8 to the Taxation (Cross-border Trade) Act 2018 (c. 22).

Section 29 of TMA 1970 was substituted by section 191(1) of FA 1994. It was amended by paragraph 12 of Schedule 19, and Part 3(28) of Schedule 27, to FA 1998, section 88(2) of FA 2005, paragraph 71 of Schedule 36, and paragraph 3 of Schedule 39 to, FA 2008, paragraph 5 of Schedule 8 to TIOPA 2010, paragraph 46 of Schedule 7 to FA 2015, paragraph 20 of Schedule 14, and paragraph 14 of Schedule 15, to F(No. 2)A 2017 (c. 32), paragraph 25(6) of Schedule 2 to FA 2019 (c. 1) and section 97(1) of FA 2022.

Section 102 of FA 2009 was amended by paragraphs 3(2) and (3) and 15 of Schedule 9 to F(No. 3)A 2010 and paragraph 2(a) and (b) of Schedule 29 to FA 2021.

Schedule 55 to FA 2009 was amended by paragraph 723 of Schedule 1 to the Corporation Tax Act 2010, paragraphs 11, 13 and 14 of Schedule 10 and Schedule 12 to FA 2010 (c. 13), paragraphs 2(2) and (2A), 3, 4, 8, 9 and 11 of Schedule 10 to F(No. 3)A 2010, paragraphs 3, 5, 7, 8 and 9 of Schedule 50, and paragraph 8 of Schedule 51, to FA 2013, paragraph 5 of Schedule 33 to FA 2014, paragraphs 15, 18 and 19 of Schedule 20 to FA 2015, section 169(6) of, paragraphs 10 to 12 of Schedule 21, and paragraph 20(5) of Schedule 22 to, FA 2016, paragraph 4(2) of Schedule 11 to FA 2017, paragraph 118(2) of Schedule 8 to the Taxation (Cross-border Trade) Act 2018, and paragraph 2(2) of Schedule 15 and paragraph 39 of Schedule 27, to FA 2021.

S.I. 2003/282 (“the 2003 Regulations”). The 2003 Regulations have been relevantly amended by Part 10 of Schedule 1 to the Statute Law (Repeals) Act 2013 (c. 2), and by S.I. 2005/3338, S.I. 2009/3218, S.I. 2010/2942, S.I. 2014/489 and S.I. 2023/221.

Section 28J of TMA 1970 was inserted by paragraph 3 of Schedule 23 to FA 2016.

By virtue of regulation 2(2)(a), “scheme pays notice” means a notice under section 237B(3) of FA 2004. Section 237B was inserted by paragraph 15 of Schedule 17 to FA 2011 and amended by paragraphs 119 and 129 of Schedule 46 to FA 2013, paragraph 68 of Schedule 1 to the Taxation of Pensions Act 2014, section 9(1) and (2) of FA 2022, and by S.I. 2015/80, S.I. 2015/1810 and S.I. 2019/201.

Requests made to a scheme administrator to pay an amount of an annual allowance charge may be made outside the statutory provisions of FA 2004 and associated legislation. These requests are also referred to in regulation 10(2)(b) and 11(2)(d) of the 2023 Regulations, and more information can be found at https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm056300#IDAKEOLD.

By virtue of regulation 2(2)(b), paragraph 1(2) of Schedule 29 to FA 2004 (authorised lump sums: lump sum rule) sets out that, if a pension commencement lump sum exceeds the permitted maximum, the excess amount is not a pension commencement lump sum. The “permitted maximum” is identified in paragraph 2 of that Schedule. Paragraph 1 was amended by paragraph 34 of Schedule 10 to FA 2005, paragraphs 11(1) to (3) and 24(3) of Schedule 20, and Part 3(2) of Schedule 27, to FA 2007, paragraphs 24, 62 and 79(1) and (2) of Schedule 16 to FA 2011 and section 51(1) and (3) of FA 2013.

By virtue of regulation 2(2)(b), “lifetime allowance enhancement factors” has the meaning given in section 218(5) of FA 2004.

Reg. 1 in force at 14.9.2023, see reg. 1(2)

Reg. 2 in force at 14.9.2023, see reg. 1(2)

Reg. 3 in force at 14.9.2023, see reg. 1(2)

Reg. 4 in force at 14.9.2023, see reg. 1(2)

Reg. 5 in force at 14.9.2023, see reg. 1(2)

Reg. 6 in force at 14.9.2023, see reg. 1(2)

Reg. 7 in force at 14.9.2023, see reg. 1(2)

Reg. 8 in force at 14.9.2023, see reg. 1(2)

Reg. 9 in force at 14.9.2023, see reg. 1(2)

Reg. 10 in force at 14.9.2023, see reg. 1(2)

Reg. 11 in force at 14.9.2023, see reg. 1(2)

Reg. 12 in force at 14.9.2023, see reg. 1(2)

Reg. 13 in force at 14.9.2023, see reg. 1(2)

Reg. 14 in force at 14.9.2023, see reg. 1(2)

Reg. 15 in force at 14.9.2023, see reg. 1(2)

Reg. 16 in force at 14.9.2023, see reg. 1(2)

Reg. 17 in force at 14.9.2023, see reg. 1(2)

Reg. 18 in force at 14.9.2023, see reg. 1(2)

Reg. 19 in force at 14.9.2023, see reg. 1(2)

Reg. 20 in force at 14.9.2023, see reg. 1(2)

Reg. 21 in force at 14.9.2023, see reg. 1(2)

Reg. 22 in force at 14.9.2023, see reg. 1(2)

Reg. 23 in force at 14.9.2023, see reg. 1(2)

Reg. 24 in force at 14.9.2023, see reg. 1(2)

Reg. 25 in force at 14.9.2023, see reg. 1(2)

Reg. 26 in force at 14.9.2023, see reg. 1(2)

Reg. 27 in force at 14.9.2023, see reg. 1(2)

Reg. 28 in force at 14.9.2023, see reg. 1(2)

Reg. 29 in force at 14.9.2023, see reg. 1(2)

Reg. 30 in force at 14.9.2023, see reg. 1(2)

Reg. 31 in force at 14.9.2023, see reg. 1(2)

Reg. 32 in force at 14.9.2023, see reg. 1(2)

Reg. 33 in force at 14.9.2023, see reg. 1(2)

Reg. 34 in force at 14.9.2023, see reg. 1(2)

Reg. 35 in force at 14.9.2023, see reg. 1(2)

Reg. 36 in force at 14.9.2023, see reg. 1(2)

Reg. 37 in force at 14.9.2023, see reg. 1(2)

Reg. 38 in force at 14.9.2023, see reg. 1(2)

Reg. 39 in force at 14.9.2023, see reg. 1(2)

Reg. 40 in force at 14.9.2023, see reg. 1(2)

Reg. 41 in force at 14.9.2023, see reg. 1(2)

Reg. 42 in force at 14.9.2023, see reg. 1(2)

Reg. 43 in force at 14.9.2023, see reg. 1(2)

Sch. in force at 14.9.2023, see reg. 1(2)

Word in reg. 20(1) omitted (retrospective to 24.4.2025) by virtue of The Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) Regulations 2025 (S.I. 2025/419), regs. 1(2)(5), 18(1)(a) (with reg. 18(2))

Reg. 20(1)(d) and word inserted (retrospective to 24.4.2025) by The Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) Regulations 2025 (S.I. 2025/419), regs. 1(2)(5), 18(1)(b) (with reg. 18(2))

Words in reg. 20(7) substituted (retrospective to 24.4.2025) by The Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) Regulations 2025 (S.I. 2025/419), regs. 1(2)(5), 18(1)(c) (with reg. 18(2))

Reg. 20(8)(a)(ia) inserted (retrospective to 24.4.2025) by The Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) Regulations 2025 (S.I. 2025/419), regs. 1(2)(5), 18(1)(d) (with reg. 18(2))