The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024

• “relevant benefit crystallisation event”— in relation to an individual’s lump sum allowance, has the same meaning as in section 637Q of ITEPA 2003 (availability of individual’s lump sum allowance); in relation to an individual’s lump sum and death benefit allowance, has the same meaning as in section 637S of ITEPA 2003 (availability of individual’s lump sum and death benefit allowance); and
• “relevant reference number”, in relation to an individual, means a reference number given by or on behalf of the Commissioners for His Majesty’s Revenue and Customs in respect of the individual under— the Registered Pension Schemes (Enhanced Allowances) Regulations 2006[^f00052] (where the member relies on any provision of Schedule 36 to FA 2004); the Registered Pension Schemes (Enhanced Allowances Transitional Protection) Regulations 2011[^f00053] (where the member relies on fixed protection under Schedule 18 to FA 2011); the Registered Pension Schemes and Relieved Non-UK Pension Schemes (Enhanced Allowances Transitional Protection) (Notification) Regulations 2013[^f00054] (where the member relies on fixed protection 2014 under Schedule 22 to FA 2013); the Registered Pension Schemes and Relieved Non-UK Pension Schemes (Enhanced Allowances Transitional Protection) (Individual Protection 2014 Notification) Regulations 2014[^f00055] (where the member relies on individual protection 2014 under Schedule 6 to FA 2014); paragraph 14 of Schedule 4 to FA 2016[^f00056] (where the member relies on fixed or individual protection 2016 under that Schedule).

• (3) For regulation 4 (lump sum payments by the Financial Assistance Scheme) substitute—

(4) (1) This regulation modifies Chapter 15A of Part 9 of ITEPA 2003 (pension income: lump sums under registered pension schemes) in relation to certain lump sums paid by the FAS. (2) That Chapter has effect as if, after section 637G (trivial commutation lump sums and winding-up lump sums) there were inserted— (637GA) (1) Subject to subsection (2), no liability to income tax arises on a lump sum paid to an individual under regulation 17D of the Financial Assistance Scheme Regulations 2005 (S.I. 2005/1986) (“a regulation 17D lump sum”). (2) If the amount of the regulation 17D lump sum exceeds the permitted maximum, section 579A (pensions) applies to the excess as it applies to any pension under a registered pension scheme. (3) In subsection (2) “the permitted maximum”, in relation to a regulation 17D lump sum, means the lower of— (a) so much of the individual’s lump sum allowance as is available on the individual becoming entitled to the lump sum (see section 637Q), and (b) so much of the individual’s lump sum and death benefit allowance as is available on the individual becoming entitled to the lump sum (see section 637S). (637GB) (1) Subject to subsection (2), no liability to income tax arises on a payment made in respect of an individual under regulation 18A of the Financial Assistance Scheme Regulations 2005 in the form of a lump sum (“a regulation 18A lump sum”). (2) If the amount of the regulation 18A lump sum exceeds the permitted maximum, section 579A (pensions) applies to the excess as it applies to any pension under a registered pension scheme. (3) In subsection (2) “the permitted maximum”, in relation to a regulation 18A lump sum, means so much of the individual’s lump sum and death benefit allowance as is available on the individual becoming entitled to the lump sum (see section 637S). (3) Section 637Q of ITEPA 2003 (availability of individual’s lump sum allowance) has effect as if, in the definition of “relevant lump sum” in subsection (2)(b) of that section, there were included a reference to a lump sum paid to the individual under regulation 17D. (4) Section 637S of ITEPA 2003 (availability of individual’s lump sum and death benefit allowance) has effect as if, in the definition of “relevant lump sum” in subsection (2)(b) of that section, there were included— (a) a reference to a lump sum paid to the individual under regulation 17D; and (b) a reference to a payment made in respect of the individual under regulation 18A in the form of a lump sum.

• (4) In Part 3, for the heading substitute “Lump sum allowance and lump sum and death benefit allowance”.

• (5) Regulation 5 (application of relevant lifetime allowance provisions) is amended in accordance with paragraphs (6) to (9).

• (6) In the heading omit “lifetime”.

• (7) In paragraph (1) omit “lifetime”.

• (8) In paragraph (2), in the words before sub-paragraph (a) omit “lifetime”.

• (9) In paragraph (3)—

• (a) in the words before sub-paragraph (a)—

• (i) for “6” substitute “7”;

• (ii) omit “lifetime”;

• (b) before sub-paragraph (a) insert—

(za) Chapter 15A of Part 9 of ITEPA 2003 (pension income: lump sums under registered pension schemes);

• (c) in sub-paragraph (a)—

• (i) for “sections 214 to 226 and” substitute “section”;

• (ii) omit “lifetime allowance charge and”;

• (d) in sub-paragraph (b), for “(lifetime allowance charge transitional provisions);” substitute “(transitional provision and saving: pre-commencement rights: enhancement of allowances etc); and”;

• (e) omit sub-paragraph (c) and the “and” at the end;

• (f) in sub-paragraph (d) omit “lifetime”;

• (g) in paragraph (4) omit “lifetime” in both places.

• (10) Omit regulation 6 (amount of charge).

• (11) In regulation 7 (benefit crystallisation events and amounts crystallised)—

• (a) for the heading substitute “Entitlement to assistance from the FAS”;

• (b) omit paragraph (1) (including the table);

• (c) omit paragraphs (3) to (7).

• (12) Omit regulation 8 (persons liable to charge) and regulation 9 (availability of individual’s lifetime allowance).

• (13) In regulation 11 (information and penalties)—

• (a) in paragraph (1) omit “Subject to regulation 12(2) of these Regulations,”;

• (b) in paragraph (2) omit “lifetime” in both places;

• (c) in paragraph (3), for “14” substitute “13A”.

• (14) For regulation 12 (percentage of standard lifetime allowance expended on the happening of a benefit crystallisation event) substitute—

(12) (1) The amount of a qualifying member’s[^f00057] lump sum allowance or lump sum and death benefit allowance expended on the happening of a relevant benefit crystallisation event for the purposes of these Regulations is the non-taxable amount in relation to the lump sum to which the member becomes entitled, or (as the case may be) the lump sum death benefit which a person is paid in respect of the member. (2) In this regulation “non-taxable amount”— (a) in relation to a qualifying member’s lump sum allowance, has the meaning given by section 637Q(6) of ITEPA 2003; (b) in relation to a qualifying member’s lump sum death benefit allowance, has the meaning given by section 637S(6) of ITEPA 2003.

• (15) In regulation 13 (information provided by qualifying members to the FAS scheme manager about enhanced lifetime allowance)—

• (a) in the heading, for “lifetime allowance” substitute “allowances”;

• (b) in the text omit “lifetime”; and for “Lifetime Allowance” substitute “Allowances”.

• (16) After regulation 13 insert—

(13A) (1) Paragraph (2) applies where the scheme administrator of a registered pension scheme issues a transitional tax-free amount certificate (see paragraph 127(1) of Schedule 9 to FA 2024) in relation to an individual who is a qualifying member at the time at which the certificate is issued. (2) The relevant person must, before the end of the period of 90 days beginning with the day on which they receive the certificate, send a copy of the certificate to the FAS scheme manager[^f00058]. (3) Paragraph (4) applies where the scheme administrator of a registered pension scheme issues a transitional tax-free amount certificate in relation to an individual who— (a) is not a qualifying member at the time at which the certificate is issued; and (b) becomes a qualifying member after that time. (4) The relevant person must, before the end of the period of 90 days beginning with the day on which the individual becomes a qualifying member, send a copy of the certificate to the FAS scheme manager. (5) Paragraph (6) applies where the scheme administrator of a registered pension scheme cancels a transitional tax-free amount certificate in relation to an individual who is a qualifying member. (6) The relevant person must, before the end of the period of 90 days beginning with the day on which they receive the notice of cancellation, send a copy of the notice to the FAS scheme manager. (7) In this regulation “relevant person”, in relation to a transitional tax-free amount certificate, means— (a) the qualifying member to whom the certificate relates; or (b) if the qualifying member is deceased, the member’s personal representatives.

• (17) Omit regulation 14 (information provided by the FAS scheme manager to qualifying members about liability for lifetime allowance charge).

• (18) In regulation 15 (information provided by the FAS scheme manager to qualifying members about benefit crystallisation events)—

• (a) in the heading after “qualifying members about” insert “relevant”;

• (b) in paragraph (1)(b), after “in respect of whom a” insert “relevant”;

• (c) in paragraph (2)—

• (i) for “percentage of standard lifetime allowance” substitute “amount of the member’s lump sum allowance and lump sum and death benefit allowance”;

• (ii) in sub-paragraph (a), at the beginning insert “relevant”;

• (iii) in sub-paragraph (b), for “benefit crystallisation events under section 216 of the FA 2004” substitute “relevant benefit crystallisation events”; and for “benefit crystallisation event” substitute “relevant benefit crystallisation event”.

• (19) In regulation 16 (information provided by the FAS scheme manager to personal representatives), in paragraph (1)—

• (a) in sub-paragraph (a), for “percentage of standard lifetime allowance” substitute “amount of the member’s lump sum and death benefit allowance”;

• (b) in sub-paragraph (b)—

• (i) in the words before paragraph (i), for “percentage of standard lifetime allowance” substitute “amount of the member’s lump sum allowance and lump sum and death benefit allowance”;

• (ii) in paragraph (i), at the beginning insert “relevant”;

• (iii) in paragraph (ii), for “benefit crystallisation events under section 216 of the FA 2004” substitute “relevant benefit crystallisation events”; and for “benefit crystallisation event” substitute “relevant benefit crystallisation event”;

• (iv) in the words after paragraph (ii), for “percentage” substitute “amount”.

• (20) In regulation 17 (information provided by the FAS scheme manager to HM Revenue and Customs)—

• (a) in paragraph (1)—

• (i) in the words before sub-paragraph (a), for the words from “If assistance” to “benefit crystallisation event” substitute “If the amount of a lump sum paid to a qualifying member under regulation 17D or a payment made in respect of a qualifying member under regulation 18A in the form of a lump sum exceeds the permitted maximum in relation to the lump sum, within three months of the payment”;

• (ii) in sub-paragraph (b), for “relevant benefit crystallisation event” substitute “payment”;

• (iii) in sub-paragraph (c), for “crystallised by the event” substitute “of the lump sum”;

• (iv) in sub-paragraph (d) omit “lifetime”; and for “Lifetime Allowance” substitute “Allowances”;

• (v) for sub-paragraph (e) substitute—

(e) the amount by which the amount of the lump sum exceeds the permitted maximum in relation to the lump sum.

• (b) omit paragraph (2).

• (21) In regulation 18 (information provided by personal representatives to HM Revenue and Customs)—

• (a) in paragraph (1), for sub-paragraph (b) substitute—

(b) the amount of the lump sum exceeds the permitted maximum in relation to the lump sum,

• (b) in paragraph (2)—

• (i) after sub-paragraph (b) insert—

(ba) the name of each other pension scheme (if any) of which the deceased member was a member, and the name and address of the scheme administrator of each such scheme;

• (ii) in sub-paragraph (c), after “name” insert “, date of birth, date of death and national insurance number”;

• (iii) after sub-paragraph (c) insert—

(ca) each relevant reference number (if any) in relation to the deceased member; (cb) the name, address, date of birth and national insurance number of the individual to whom the lump sum is paid;

• (iv) for sub-paragraph (f) substitute—

(f) the amount by which the amount of the lump sum exceeds the permitted maximum in relation to the lump sum.

• (22) In regulation 19 (transitional provisions: lump sums), in the words after paragraph (b), for ““APCLS”” substitute “B”.

• (23) After regulation 19 insert—

(20) Paragraph 127 of Schedule 9 to FA 2024 (transitional tax-free amount certificates) applies in relation to a qualifying member as if— (a) a reference to a registered pension scheme included a reference to the FAS[^f00059]; and (b) a reference to the scheme administrator of a registered pension scheme included a reference to the FAS scheme manager. (21) In paragraph 128 of Schedule 9 to FA 2024 (provision of information by scheme administrators to members)— (a) a reference to the Provision of Information Regulations[^f00060] includes a reference to these Regulations; (b) a reference to a registered pension scheme includes a reference to the FAS; and (c) a reference to the scheme administrator of a registered pension scheme includes a reference to the FAS scheme manager.

The Pension Protection Fund (Pension Compensation Sharing and Attachment on Divorce etc) Regulations 2011

28

In the Pension Protection Fund (Pension Compensation Sharing and Attachment on Divorce etc) Regulations 2011[^f00061], in regulation 29 (circumstances in which the portion of compensation to be commuted may exceed 25%)—

• (a) in paragraph (2)(c), for “standard lifetime allowance” substitute “lump sum and death benefit allowance (see section 637R of the Income Tax (Earnings and Pensions) Act 2003)”;

• (b) in paragraph (5), for “1% of the standard lifetime allowance on the nominated date” substitute “the amount specified in paragraph 7(4) of Schedule 29 to the Finance Act 2004 (“the Finance Act”) (trivial commutation lump sum: commutation limit)”;

• (c) in paragraph (6)(a)(i) omit “2004 (“the Finance Act”)”;

• (d) in paragraph (8) omit sub-paragraph (b).

The Pension Protection Fund (Pension Compensation Sharing and Attachment on Divorce etc.) Regulations (Northern Ireland) 2011

29

In the Pension Protection Fund (Pension Compensation Sharing and Attachment on Divorce etc.) Regulations (Northern Ireland) 2011[^f00062], in regulation 26 (circumstances in which the portion of compensation to be commuted may exceed 25%)—

• (a) in paragraph (2)(c), for “standard lifetime allowance” substitute “lump sum and death benefit allowance (see section 637R of the Income Tax (Earnings and Pensions) Act 2003)”;

• (b) in paragraph (5), for “1% of the standard lifetime allowance on the nominated date” substitute “the amount specified in paragraph 7(4) of Schedule 29 to the Finance Act (trivial commutation lump sum: commutation limit)”;

• (c) in paragraph (8) omit the entry for “standard lifetime allowance”.

The Registered Pension Schemes (Notice of Joint Liability for the Annual Allowance Charge) Regulations 2011

30

In the Registered Pension Schemes (Notice of Joint Liability for the Annual Allowance Charge) Regulations 2011[^f00063], in regulation 2 (particulars to be included in the notice), for paragraph (3) substitute—

(3) Where— (a) the notice is given to the scheme administrator in the relevant tax year[^f00064], and (b) it is anticipated that, at a later date in the relevant tax year, the individual will become entitled to all of the benefits under the pension scheme to which the notice relates, the individual must state that date in the notice.

The Pension (Non-Taxable Payments Following Death) (Real Time Information) Regulations 2021

31

In the Pension (Non-Taxable Payments Following Death) (Real Time Information) Regulations 2021[^f00065], in regulation 3 (relevant payments), in paragraph (1)(c)—

• (a) omit the “or” at the end of paragraph (i);

• (b) at the end of paragraph (ii) insert “or

(iii) charity lump sum death benefit within the meaning of paragraph 18 of Schedule 29 to that Act[^f00066],

Signed

Jeff Smith — Anna Turley — Two of the Lords Commissioners of His Majesty's Treasury — 7th October 2024

Explanatory note

(This note is not part of the Regulations)

Explanatory Note

These Regulations amend and modify primary and secondary legislation to make further consequential provision in connection with the removal of the lifetime allowance and the lifetime allowance charge by the Finance (No. 2) Act 2023 (c. 30) and the Finance Act 2024 (c. 3).

A reference in this Explanatory Note to “FA” followed by a year is a reference to a Finance Act of that year.

The amendments made by these Regulations have effect for the tax year 2024-25 and for subsequent tax years.

Paragraph 134(2)(b) of Schedule 9 to FA 2024 allows regulations to be made after 5 April 2024 so as to have effect for the tax year in which they are made.

Part 2 of these Regulations contains provisions amending or modifying primary legislation.

Regulation 2 amends section 98 of the Taxes Management Act 1970 (c. 9) so that a penalty attaches to a failure to give a transitional tax-free amount certificate as provided for in paragraph 127B of Schedule 9 to FA 2024.

(Regulation 17(5) of these Regulations inserts new paragraph 127B into Schedule 9 to FA 2024).

Regulation 3 amends various provisions in Chapter 15A of Part 9 of the Income Tax (Earnings and Pensions) Act 2003 (c. 1, “ITEPA 2003”) relating to “the permitted maximum” and drawdown pension fund lump sum death benefits under registered pension schemes.

Paragraph (7) of regulation 3 inserts a new section 637T into ITEPA 2003, which makes provision as to the time at which the benefit crystallisation events within section 637S are deemed to have occurred, where there is more than one such event. It also makes provision as to the calculation of the amount of lump sum and death benefit allowance available.

Regulation 4 amends Chapter 1 of Part 11 of ITEPA 2003, by substituting cross-references in section 683 of ITEPA 2003 relating to the tax treatment of pension commencement excess lump sums (section 637B) and trivial commutation lump sums and winding-up lump sums (section 637G), so that taxable pension income determined in accordance with those sections is treated as PAYE pension income for a tax year. It also excludes from PAYE pension income any taxable pension income determined in accordance with section 579B of ITEPA 2003 by virtue of the application of section 579A as applied by sections 637H to 637M.

Regulation 5 amends sections 239 and 255 of FA 2004 (c. 12) to make consequential amendments as to the scheme sanction charge and to give the Commissioners for His Majesty’s Revenue and Customs the power to make regulations as to the making of assessments in respect of the charge to tax under Part 9 of ITEPA 2003 as a result of amendments to provisions in that Act by these Regulations.

Regulation 6 makes minor consequential amendments to Schedule 29 to FA 2004.

Regulation 7 makes minor consequential amendment to Schedule 32 to FA 2004.

Regulation 8 amends Schedule 36 to FA 2004.

Paragraph (3) of regulation 8 modifies the effect of Chapter 15A of Part 9 of ITEPA 2003 in relation to individuals with relevant pre-commencement pension rights exceeding £1,500,000 where there is a notice of intention to rely on the primary protection rules in paragraph 7 of Schedule 36 to FA 2004. Where the primary protection rules apply, the individual’s lump sum allowance is £375,000 and the amount of the individual’s enhanced lump sum and death benefit allowance is that specified in section 637R of ITEPA 2003 (as determined by paragraph 20H of Schedule 36 to FA 20040. Paragraph 20H is inserted into Schedule 36 by regulation 8(16) of these Regulations.

Paragraph (5) of regulation 8 inserts a new paragraph 12A into Schedule 36 to FA 2004, which modifies the application of Part 2 of that Schedule and of Chapter 15A of Part 9 of ITEPA 2003, in relation to individuals with enhanced protection. It modifies the definition of “permitted maximum” in those provisions, as that term applies in relation to certain lump sums.

Paragraph (6) of regulation 8 amends paragraph 18 of Schedule 36 to FA 2004 to specify the amount of an individual’s lump sum allowance and lump sum and death benefit allowance in Chapter 15A of Part 9 of ITEPA 2003.

Paragraph (7) of regulation 8 amends paragraph 19 of Schedule 36 to FA 2004 to substitute different amounts (for the purposes of Chapter 15A of Part 9 of ITEPA 2003) that an individual is permitted to take before normal minimum pension age.

Paragraph (8) of regulation 8 makes consequential amendments to paragraph 20 of Schedule 36 to FA 2004.

Paragraph (9) of regulation 8 amends paragraph 20A of Schedule 36 to FA 2004 to make provision as to the amount of an individual’s lump sum and death benefit allowance in relation to pension credits from previously crystallised rights for the purposes of Chapter 15A of Part 9 of ITEPA 2003.

Paragraphs (10 to (15) of regulation 8 amend paragraphs 20B to 20G of Schedule 36 to FA 2004 to make consequential provision in relation to the lump sum allowances of individuals who are non-resident in the UK and in relation to overseas transfers.

Paragraph (16) of regulation 8 inserts a new paragraph 20H into Schedule 36 to FA 2004 to make provision for the calculation of an individual’s enhanced lump sum and death benefit allowance where one or more enhancement factors operate in relation to the individual.

Paragraph (17) of regulation 8 makes minor consequential amendment to paragraph 24 of Schedule 36 to FA 2004.

Paragraph (18) of regulation 8 substitutes paragraph 27 of Schedule 36 to FA 2004 to make provision as to the determination of the maximum amount of a pension commencement lump sum that may be paid to an individual to whom the enhanced protection provisions in paragraph 12 of that Schedule apply.

Paragraph (19) of regulation 8 inserts a new sub-paragraph (A1) into paragraph 28 of Schedule 36 to FA 2004 to make provision in relation to individuals to whom the enhanced protection provisions in paragraph 12 of that Schedule do not apply.

Regulations 9, 10, 11 and 12, respectively, make amendments to the Pensions Act 2004 (c. 35), the Pensions (Northern Ireland) Order 2005 ((S.I. 2005/255 (N.I. 1), the Pensions Act 2008 (c. 30) and the Pensions (No. 2) Act (Northern Ireland) 2008 (2008 c. 13 (N.I.)), to remove references to the lifetime allowance from provisions relating to the payment of terminal illness lump sums.

Regulation 13 amends Schedule 18 to FA 2011 (c. 11) to make provision as to the amount of an individual’s lump sum allowance and lump sum and death benefit allowance for the purposes of fixed protection.

Regulation 14 amends Schedule 22 to FA 2013 (c. 29) to make transitional provision as to the amount of an individual’s lump sum allowance and lump sum and death benefit allowance for the purposes of “fixed protection 2014”.

Regulation 15 amends Schedule 6 to FA 2014 (c. 26) to make transitional provision as to the amount of an individual’s lump sum allowance and lump sum and death benefit allowance for the purposes of “individual protection 2016”.

Regulation 16 amends Schedule 4 to FA 2016 (c. 24) to make transitional provision as to the amount of an individual’s lump sum allowance and lump sum and death benefit allowance for the purposes of “fixed protection 2016”.

Regulation 17 amends Schedule 9 to FA 2024 (c. 3).

Regulation 17(2) amends paragraph 126 of Schedule 9 to provide conditions to be met where a lump sum death benefit is paid in respect of an individual before 6 April 2024, for the purposes of determining the availability of an individual’s lump sum and death benefit allowance. It is also amended to specify the relevant time for the purposes of determining the relevant benefit crystallisation event.

Regulation 17(3) amends paragraph 127 of Schedule 9 to make provision as to the availability of the standard lifetime allowance in the tax year 2023-24 and makes other, minor consequential amendments.

Regulation 17(4) amends paragraph 127A of Schedule 9 to make provision as to the previously-used amount of an individual’s adjusted lifetime allowance.

Regulation 17(5) inserts a new paragraph 127B into Schedule 9 to require the provision of information to scheme administrators, where a certification administrator has issued a tax-free amount certificate and there are one or more other certification administrators in relation to the individual to whom the certificate relates.

Regulation 17(6) amends paragraph 128 of Schedule 9 to make provision as to the amount of the member’s lump sum allowance that has been expended where either a) the certification conditions are met, or b) an non-qualifying person has been paid (before 6 April 2024) a defined benefits lump sum death benefit or an uncrystallised funds lump sum death benefit within a specified period.

Regulation 17 also makes other consequential amendments to Schedule 9.

Part 3 of these Regulations contains provisions amending and modifying subordinate legislation.

Regulation 18 makes minor consequential amendments to the Occupational Pension Schemes (Assignment, Forfeiture, Bankruptcy, etc.) Regulations (Northern Ireland) 1997 (S.R. 1997 No. 153).

Regulation 19 makes minor consequential amendments to the Pension Protection Fund (Compensation) Regulations 2005 (S.I. 2005/670).

Regulation 20 makes minor consequential amendments to the Pension Protection Fund (Compensation) Regulations (Northern Ireland) 2005 (S.R. 2005 No. 149).

Regulation 21 amends regulation 4 of the Registered Pension Schemes (Accounting and Assessment) Regulations 2005 (S.I. 2005/3454) to provide that an officer of His Majesty’s Revenue and Customs must issue an assessment to the person liable to the charge to tax in respect of a lump sum death benefit to which section 579A or 637N of ITEPA 2003 applies.

Regulation 22 makes minor consequential amendments to the Pension Schemes (Application of U.K. Provisions to Relevant Non-U.K. Schemes) Regulations 2006 (S.I. 2006/207).

Regulation 23 amends the Pension Schemes (Information Requirements - Qualifying Overseas Pension Schemes, Qualifying Recognised Overseas Pension Schemes and Corresponding Relief) Regulations 2006 (S.I. 2006/208). It amends paragraph (2) of regulation 3 to require the scheme manager to provide to HMRC information as to the amount of the member’s overseas transfer allowance that was available on the making of the transfer, when a payment is made or treated as made in respect of a relevant member. It also amends paragraph (2B) of regulation 3 to require provision of that information to HMRC in the circumstances set out in that paragraph.

Regulation 24 amends the Registered Pension Schemes (Provision of Information) Regulations 2006 (S.I. 2006/567). Paragraph (2) of regulation 24 amends regulation 3 of those Regulations and requires information about a member’s overseas transfer allowance to be provided by scheme administrators to HM Revenue and Customs. Paragraph (3) of regulation 24 amends regulation 8 of those Regulations to specify the information to be provided by scheme administrators to personal representatives. Paragraph (4) of regulation 24 amends regulation 11BA of those Regulations to require scheme administrators to provide information about a member’s available overseas transfer allowance in relation to recognised transfers. Paragraph (5) of regulation 24 inserts a new regulation 14ZC into those Regulations to require the scheme administrator of the transferring scheme to provide the scheme administrator of the recipient scheme with information about “the permitted maximum” amount in relation to specified lump sums, if those sums were paid to or in respect of a member to whom enhanced protection applies. Paragraph (6) of regulation 24 makes consequential amendments to regulations 14A and 15 of those Regulations.

Regulation 25 amends the Taxation of Pension Schemes (Transitional Provisions) Order 2006 (S.I. 2006/572). Paragraph (3) of regulation 25 amends article 7 of that Order to modify Chapter 15A of Part 9 of ITEPA 2003 by inserting a new section 637NA to provide that no liability to income tax arises on a life cover lump sum, and to make other consequential provision. Paragraph (7) of regulation 25 substitutes article 13 of that Order, which modifies paragraph 20C of Schedule 36 to FA 2004 regarding the value of a relevant overseas individual’s rights under a money purchase arrangement. Paragraph (8) of regulation 25 substitutes article 14 of that Order, which modifies paragraph 20D of Schedule 36 to FA 2004 regarding the value of a relevant overseas individual’s rights under other arrangements. Regulation 25 also makes other consequential amendments to that Order.

Regulation 26 amends the Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575). Paragraph (6) of regulation 25 substitutes a new regulation 42B for regulations 42 and 42A of those Regulations, which modifies Chapter 15A of Part 9 of ITEPA 2003 by inserting new sections 637GA, 637GB and 637GC. For these purposes:

Inserted section 637GA provides that no liability to income tax arises on a pension protection fund commutation lump sum or a pension protection funds pension credit commutation lump sum, to the extent that such lump sums do not exceed the permitted maximum.

Inserted section 637GB makes similar provision in relation to pension protection fund terminal illness lump sums.

Inserted section 637GC provides that an individual to whom other pension protection fund lump sums are paid is treated as having taxable pension income for the tax year in which the payment is made (subject to a “tax free element” of 25% of the value of any uncrystallised rights extinguished by the lump sum).

Regulation 26 also modifies sections 637Q and 637S of ITEPA 2003 as those provisions have effect for the purposes of the Pension Protection Fund (Tax) Regulations 2006.

Regulation 27 amends the Financial Assistance Scheme (Tax) Regulations 2010 (S.I. 2010/1187). Paragraph (2) of regulation 27 inserts a definition of “the permitted maximum” and other defined terms which operate for the purposes of those Regulations. Paragraph (3) of regulation 27 substitutes regulation 4 of those Regulations, which modifies the application of Chapter 15A of Part 9 of ITEPA 2003 in relation to certain lump sums paid by the Financial Assistance Scheme. Paragraph (14) of regulation 27 substitutes regulation 12 of those Regulations to make provision as to the qualifying member’s allowances where a relevant benefit crystallisation event has occurred. Paragraph (16) of regulation 27 inserts a new regulation 13A into those Regulations to require provision of transitional tax-free amount certificates to the FAS scheme manager. Paragraph (23) of regulation 27 inserts new regulations 20 and 21 into those Regulations which make provision about transitional tax-free amount certificates and the provision of information by FAS scheme managers to qualifying members. Regulation 27 also makes further consequential provision to those Regulations.

Regulation 28 makes minor consequential amendments to the Pension Protection Fund (Pension Compensation Sharing and Attachment on Divorce etc) Regulations 2011 (S.I. 2011/731) and regulation 29 makes equivalent minor consequential amendments to the Pension Protection Fund (Pension Compensation Sharing and Attachment on Divorce etc) Regulations (Northern Ireland) 2011 (S.R. 2011 No. 113).

Regulation 30 amends regulation 2 of the Registered Pension Schemes (Notice of Joint Liability for the Annual Allowance Charge) Regulations 2011 (S.I. 2011/1793) as to the particulars to be given in the notice to scheme administrators.

Regulation 31 makes minor consequential amendments to regulation 3 of the Pension (Non-Taxable Payments Following Death) (Real Time Information) Regulations 2021 (S.I. 2021/506).

A Tax Information and Impact Note covering this instrument will be published on the Gov.UK website at https://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins.

Footnotes

[^f00001]: 2024 c. 3. In these footnotes, a reference to “FA” followed by a year is to a Finance Act of that year and a reference to “F(No. 2)A” followed by a year is to Finance (No. 2) Act of that year.

[^f00002]: 1970 c. 9. There are other amending instruments of the second column of the Table in section 98, but none is relevant. “TMA 1970” is defined in section 38 of FA 2024.

[^f00003]: 2003 c. 1. Chapter 15A was inserted by paragraph 11 of Schedule 31 to FA 2004 (c. 12) and was substituted for a new Chapter 15A consisting of sections 367 to 367S by paragraph 41 of Schedule 9 to FA 2024. “ITEPA 2003” is defined in section 38 of FA 2024.

[^f00004]: Section 683 was amended by paragraph 14 of Schedule 31 to FA 2004, paragraph 60 of Schedule 10 to FA 2005 (c. 7), section 10 of FA (No. 2) 2005 (c. 22), paragraph 60 of Schedule 16 to FA 2011 (c. 11), paragraph 130 of Schedule 45 to FA 2013 (c. 29) and section 22 of FA (No. 2) 2015 (c. 33).

[^f00005]: Sections 637, 637G and 637N were inserted by paragraph 41 of Schedule 9 to FA 2024.

[^f00006]: 2004 c. 12. Subsection (3) of section 239 was amended by paragraph 12 of Schedule 5 to FA 2014 (c. 26). Subsection (1) of section 255 was amended by paragraph 19 of Schedule 17 to FA 2011, paragraph 17 of Schedule 7 to FA 2014 (c. 26), paragraph 16 of Schedule 4 to FA 2017 (c. 10) and paragraph 7 of Schedule 9 to FA 2024. Section 38 of FA 2024 provides that a reference to “FA” followed by a year is to a Finance Act of that year; and that a reference to “F(No. 2)A” followed by a year is to Finance (No. 2) Act of that year.

[^f00007]: Paragraph 2 of Schedule 29 was substituted by paragraph 26 of Schedule 9 to FA 2024. Paragraph 4A was inserted by paragraph 57 of Schedule 1 to the Taxation of Pensions Act 2014 (c. 30). It was amended by paragraph 21 of Schedule 5 to FA 2021 (c. 26), paragraphs 28 and 63 of Schedule 9 to FA 2024 and by S.I. 2024/356. Paragraph 14 of Schedule 29 was amended by paragraph 34 of Schedule 16 to FA 2011 (c. 11). Paragraph 16 of Schedule 29 was amended by paragraph 36 of Schedule 16 to FA 2011.

[^f00008]: Paragraph 6A was inserted by paragraph 67 of Schedule 9 to FA 2024. Paragraph 7 was substituted by paragraph 68 of Schedule 9 to FA 2024. Paragraph 12 was amended by paragraph 53 of Schedule 10 to FA 2005 (c. 7), paragraph 17 of Schedule 20 to FA 2007 (c. 11), paragraph 432 of Schedule 1 to the Corporation Tax Act 2010 (c. 4), paragraph 59 of Schedule 26 to the Equality Act 2010 (c. 15) and section 23(2) of FA (No. 2) Act 2023 (c. 30). Sub-paragraphs (3A) to (3H) of paragraph 12 were substituted by paragraph 71 of Schedule 9 to FA 2024. Paragraph 18 was substituted by paragraph 75 of Schedule 9 to FA 2024. Paragraph 19 was amended by paragraph 76 of Schedule 9 to FA 2024. Paragraphs 20A to 20G were inserted by paragraph 78 of Schedule 9 to FA 2024. Paragraph 24 was amended by paragraph 81 of Schedule 9 to FA 2024. Paragraph 27 was substituted by paragraph 82 of Schedule 9 to FA 2024. Paragraph 28 was amended by paragraph 83 of Schedule 9 to FA 2024.

[^f00009]: Paragraph 7 of Schedule 36 was substituted by paragraph 68 of Schedule 9 to FA 2024.

[^f00010]: 2011 c. 11. Paragraph 14 of Schedule 18 was amended by section 47(2) of FA 2013 (c. 29), section 23(5) of FA (No. 2) 2023 (c. 30), paragraph 90 of Schedule 9 to FA 2024 and by S.I. 2013/1740.

[^f00011]: 2013 c. 29. Paragraph 1 of Schedule 22 was amended by section 23(6) of FA (No. 2) Act 2023 (c. 30). The existing paragraph 1 was substituted by paragraph 91 of Schedule 9 to FA 2024.

[^f00012]: 2014 c. 26. Paragraph 1 of Schedule 6 was substituted by paragraph 92 of Schedule 9 to FA 2024.

[^f00013]: 2016 c. 24. Paragraph 1 of Schedule 4 was substituted by paragraph 93 of Schedule 9 to FA 2024. Paragraph 9 of that Schedule was amended by paragraph 93 of Schedule 9 to FA 2024

[^f00014]: 2004 c. 35. Paragraph 25B of Schedule 7 was inserted by paragraph 14 of Schedule 8 to the Pensions Act 2008 (c. 30) and was amended by paragraph 26 of Schedule 4 to the Pensions Act 2011 (c. 19).

[^f00015]: S.I. 2005/255 (N.I. 1). Paragraph 25B was inserted by paragraph 14 of Schedule 6 to the Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13) (N.I.) and was amended by paragraphs 19 and 26 of Schedule 4 to the Pensions Act (Northern Ireland) 2012 (c. 3) (N.I.).

[^f00016]: 2008 c. 30. Paragraph 12 of Schedule 5 was amended by paragraph 34 of Schedule 4 to the Pensions Act 2011 (c. 19).

[^f00017]: 2008 c. 13 (N.I.). Paragraph 12 of Schedule 4 was amended by paragraph 34 of Schedule 4 to the Pensions Act (Northern Ireland) 2012 (c. 3) (N.I.).

[^f00018]: 2011 c. 11. Paragraph 14 of Schedule 18 was amended by section 47(2) of FA 2013 (c. 29), section 23(5) of FA (No. 2) 2023 (c. 30), paragraph 90 of Schedule 9 to FA 2024 and by S.I. 2013/1740.

[^f00019]: 2013 c. 29. Paragraph 1 of Schedule 22 was amended by section 23(6) of FA (No. 2) 2023 and paragraph 91 of Schedule 9 to FA 2024.

[^f00020]: 2014 c. 26. Paragraph 1 of Schedule 6 was amended by paragraph 92 of Schedule 9 to FA 2024.

[^f00021]: “Relevant amount” is defined for the purposes of Part 1 of Schedule 6 by paragraph 1(5) of Schedule 6 to FA 2014.

[^f00022]: 2016 c. 24. Sub-paragraph (2) of paragraph 1 and sub-paragraph (2) of paragraph 9 of Schedule 4 were substituted by paragraph 93 of Schedule 9 to FA 2024. Sub-paragraph (1) of paragraph 9 of Schedule 4 was amended by paragraph 93 of Schedule 9 to FA 2024.

[^f00023]: The “individual’s relevant amount” is defined for these purposes in paragraph 9(4) of Schedule 4.

[^f00024]: 2024 c. 3. Paragraphs 126, 128, 129, 130 and 132 of Schedule 9 were amended by S.I. 2024/356 and paragraphs 127A and 130A were inserted by that instrument.

[^f00025]: Paragraph 129(5) of Schedule 9 defines “lifetime allowance previously-used amount” for these purposes.

[^f00026]: S.R. 1997 No. 153. Paragraph (1B) was inserted into regulation 2 by S.I. 2006/744.

[^f00027]: S.I. 2005/670. The definition of “standard lifetime allowance” was inserted by S.I. 2006/580. There are other amending instruments to paragraph (2) of regulation 1 but none is relevant. Regulation 20 was substituted by S.I. 2006/580 and amended by S.I. 2013/627.

[^f00028]: S.R. 2005 No. 149. The definition of “standard lifetime allowance” was inserted by S.R. 2006 No. 155. There are other amending instruments to paragraph (2) of regulation 1 but none is relevant. Regulation 18 was amended by S.R. 2006 No. 155 and S.R. 2013 No. 95.

[^f00029]: S.I. 2005/3454. Table 2 in regulation 4, Table 3 in regulation 5, and regulation 8 were amended by S.I. 2014/1928 and 2024/356.

[^f00030]: “ITEPA” is defined for the purposes of the Registered Pension Schemes (Accounting and Assessment) Regulations 2005 in regulation 2 of those Regulations.

[^f00031]: S.I. 2006/207. Regulation 15 was amended by paragraph 62 of Schedule 9 to FA 2024.

[^f00032]: S.I. 2006/208. Paragraph (2) of regulation 3 was amended by paragraph 22 of Schedule 4 to FA 2017 (c. 10), S.I. 2013/2259, 2024/356. Paragraph (2B) was inserted by paragraph 22 of Schedule 4 to FA 2017.

[^f00033]: S.I. 2006/567. In regulation 3, the entry for event 9 in the second column of the Table was amended by paragraph 24 of Schedule 4 to FA 2017 (c. 10), and by S.I. 2011/301, 2012/884 and 2013/1742. Regulation 8 was amended by paragraph 108 of Schedule 9 to FA 2024 and by S.I. 2008/720 and 2024/356. Regulation 11BA was inserted by S.I. 2012/884 and was amended by paragraph 24 of Schedule 4 to FA 2017, paragraph 113 of Schedule 9 to FA 2024 and by S.I. 2013/1742. Regulation 14ZC was inserted by paragraph 87 of Schedule 1 to the Taxation of Pensions Act 2014 (c. 30) and was amended by S.I. 2015/606. Regulation 14A was inserted by S.I. 2011/1797 and was amended by paragraph 88 of Schedule 1 to the Taxation of Pensions Act 2014, S.I. 2016/308, 2017/11, 2018/5 and by 2022/392. Regulation 15 was amended by paragraph 119 of Schedule 9 to FA 2024.

[^f00034]: “QROPS” (qualifying recognised overseas pension scheme) is defined in section 169(2) of FA 2004. By regulation 2(3) of the Registered Pension Schemes (Provision of Information) Regulations 2006, expressions defined or otherwise explained in section 280 of FA 2004 have the same meaning in those Regulations as they do in Part 4 of FA 2004.

[^f00035]: Regulation 2(1) of the Registered Pension Schemes (Provision of Information) Regulations 2006 (S.I. 2006/567) provides that in those Regulations, a reference (without more) to a numbered Schedule is a reference to the Schedule in FA 2004 bearing the same number.

[^f00036]: S.I. 2006/572. Article 18 was amended by paragraph 12 of Schedule 5 to FA 2014. Articles 23ZC and 23ZE were inserted by S.I. 2011/732. Articles 23C and 23D were inserted by S.I. 2009/1172. Article 25C was amended by section 42(5) FA 2014 and paragraph 72 of Schedule 1 to the Taxation of Pensions Act 2014. Article 25D was amended by paragraph 34 of Schedule 23 to FA 2006 (c. 25). Articles 25CA and 25CC were inserted by paragraph 95 of Schedule 9 to FA 2024 and were amended by S.I. 2024/356. Article 29A was inserted by S.I. 2006/1962. Articles 40 and 41 were amended by S.I. 2006/1962. Articles 44 and 45 were inserted by S.I. 2011/732.

[^f00037]: Paragraphs 20C and 20D of Schedule 36 were inserted by paragraph 78 of Schedule 9 to FA 2024.

[^f00038]: S.I. 1997/785. Paragraph (1A) of regulation 2 was substituted by S.I. 2006/778.

[^f00039]: S.R. 1997 No. 153. Paragraph (1A) of regulation 2 was substituted by S.R. 2006 No. 141.

[^f00040]: S.I. 2006/575. Regulation 23A was inserted by, and regulations 42 and 42A were substituted by, S.I. 2013/1117.

[^f00041]: 2004 c. 35. Paragraph 24 of Schedule 7 was amended by paragraph 25 of Schedule 4 to the Pensions Act 2011 (c. 19), paragraph 6 of Schedule 20 to the Pensions Act 2014 (c. 19) and by S.I. 2023/1309.

[^f00042]: S.I. 2005/255 (N.I.). Paragraph 24 was amended by paragraph 25 of Schedule 4 to the Pensions Act (Northern Ireland) 2012 (c. 3) (N.I.), paragraph 4 of Schedule 20 to the Pensions Act (Northern Ireland) 2015 (c. 5) (N.I.) and by S.I. 2023/1312.

[^f00043]: S.I. 2006/580. Regulation 9A was inserted by S.I. 2013/627 and amended by S.I. 2016/294 and 2017/324.

[^f00044]: S.R. 2006 No. 155. Regulation 9A was inserted by S.R. 2013 No. 95 and was amended by S.R. 2016 No. 165 and S.R. 2017 No. 59.

[^f00045]: 2008 c. 30. Paragraphs 9 and 15 of Schedule 5 were amended, respectively, by paragraphs 33 and 34 of Schedule 4 to the Pensions Act 2011 (c. 19).

[^f00046]: 2008 c. 13 (N.I.). Paragraphs 9 and 15 of Schedule 4 were amended, respectively, by paragraphs 33 and 34 of Schedule 4 to the Pensions Act (Northern Ireland) 2012.

[^f00047]: 2004 c. 35. Paragraph 25E of Schedule 7 was inserted by paragraph 14 of Schedule 8 to the Pensions Act 2008 (c. 30) and amended by paragraph 26 of Schedule 4 to the Pensions Act 2011 (c. 19).

[^f00048]: S.R. & O. (N. I.) No. 2005 No. 255. Paragraph 25E of Schedule 6 was inserted by the Pensions (No. 2) Act (Northern Ireland) 2008 and was amended by paragraph 26 of Schedule 4 to the Pensions Act (Northern Ireland) 2012.

[^f00049]: S.I. 2010/1187.

[^f00050]: This is a reference to regulation 17D in the Financial Assistance Scheme Regulations 2005 (S.I. 2005/1986). Regulation 17D was inserted by S.I. 2010/1149.

[^f00051]: This is a reference to regulation 18A in S.I. 2005/1986. Regulation 18A was inserted by S.I. 2010/1149.

[^f00052]: S.I. 2006/131.

[^f00053]: S.I. 2011/1752.

[^f00054]: S.I. 2013/1741.

[^f00055]: S.I. 2014/1842.

[^f00056]: 2016 c. 24. Paragraph 14 of Schedule 4 was amended by paragraph 93 of Schedule 9 to FA 2024.

[^f00057]: “Qualifying member” is defined in regulation 1 of S.I. 2010/1187.

[^f00058]: “FAS scheme manager” is defined in regulation 1 of S.I. 2010/1187.

[^f00059]: “FAS” is defined in regulation 1 of S.I. 2010/1187.

[^f00060]: The “Provision of Information Regulations” is defined in paragraph 128(7) of Schedule 9 to FA 2024.

[^f00061]: S.I. 2011/731.

[^f00062]: S.R. 2011 No. 113. Regulation 26 was amended by S.R. 2013 No. 95.

[^f00063]: S.I. 2011/1793.

[^f00064]: “Relevant tax year” is defined in regulation 1 of S.I. 2011/1793.

[^f00065]: S.I. 2021/506.

[^f00066]: Paragraph 18 of Schedule 29 to FA 2004 was amended by paragraph 16 of Schedule 19 to FA 2007 (c. 11), paragraph 38 of Schedule 16 to FA 2011 (c. 11), paragraph 25 of Schedule 1 and paragraph 15 of Schedule 2 to the Taxation of Pensions Act 2014 and by paragraph 5 of Schedule 5 to FA 2016 (c. 24).