The Personal and Occupational Pension Schemes (Transfer to Self-employed Pension Arrangements) Regulations 1988

• Citation: S.I. 1988/1016
• Sections: 4

Section 1 Citation and commencement

These Regulations may be cited as the Personal and Occupational Pension Schemes (Transfer to Self-employed Pension Arrangements) Regulations 1988 and shall come into force on 1st July 1988.

Section 2 Amendment of the Occupational Pension Schemes (Transfer Values) Regulations 1985

The Occupational Pension Schemes (Transfer Values) Regulations 1985 shall be amended as follows —

(a) in sub-paragraphs (a) and (c) of regulation 2(3) for the words “Chapter II of Part II of the Finance Act 1970” there shall be substituted the words “Chapter I of Part XIV of the Income and Corporation Taxes Act 1988 ”;

(b) in sub-paragraph (b) of regulation 2(3) for the words “section 26(1) of the Finance Act 1970” there shall be substituted the words “section 612(1) of the Income and Corporation Taxes Act 1988”;

(c) in sub-paragraph (d) of regulation 2(3) for the words “section 36 of the Finance Act 1980” there shall be substituted the words “section 608 of the Income and Corporation Taxes Act 1988”; and

(d) after regulation 2C there shall be inserted the following regulation —

Use of cash equivalents for subscribing to self-employed arrangements

(2D)

(1) For the purposes of paragraph 13(3) (except in prescribed circumstances paragraph 13(2) to be construed as if paragraph (c) were omitted) the prescribed circumstances are that a member of a scheme who has acquired a right to a cash equivalent under paragraph 12 in respect of rights which are not rights to a guaranteed minimum pension or protected rights has become, or proposes to become, a member of a self-employed pension arrangement.

(2) For the purposes of paragraph 13(2) (c) the prescribed requirements are that the other pension arrangement to which it is proposed to subscribe is a self-employed pension arrangement.

(3) In this regulation “self-employed pension arrangement” means a personal pension scheme within the meaning of Chapter IV of Part XIV of the Income and Corporation Taxes Act 1988 which is approved by the Inland Revenue under that Chapter; but which is neither a personal pension scheme within the meaning of the Social Security Act 1986 nor a contract or a scheme approved under Chapter III of Part XIV of the Income and Corporation Taxes Act 1988.

Section 3 Amendment of the Personal Pension Schemes (Transfer Values) Regulations 1987

The Personal Pension Schemes (Transfer Values) Regulations 1987 shall be amended as follows —

(a) in regulation 2(a) (i) for the words “Chapter II of Part II of the Finance Act 1970” there shall be substituted the words “Chapter I of Part XIV of the Income and Corporation Taxes Act 1988”;

(b) in regulation 2(a) (ii) for the words “section 26(1) of the Finance Act 1970” there shall be substituted the words “section 612(1) of the Income and Corporation Taxes Act 1988”; and

(c) after regulation 2 there shall be inserted the following regulation —

Use of cash equivalents for subscribing to self-employed pension arrangements

(2A)

(1) For the purposes of paragraph 13(3) of Schedule 1A to the Act (except in prescribed circumstances paragraph 13(2) to be construed as if paragraph (c) were omitted) the prescribed circumstances are that a member of a personal pension scheme who has acquired a right to a cash equivalent under paragraph 12 of Schedule 1A to the Act in respect of rights which are not protected rights has become, or proposes to become, a member of a self-employed pension arrangement.

(2) For the purposes of paragraph 13(2) (c) of Schedule 1A to the Act the prescribed requirements are that the other pension arrangement to which it is proposed to subscribe is a self-employed pension arrangement.

(3) In this regulation “self-employed pension arrangement” means a personal pension scheme within the meaning of Chapter IV of Part XIV of the Income and Corporation Taxes Act 1988 which is approved by the Inland Revenue under that Chapter; but which is neither a personal pension scheme within the meaning of the Social Security Act 1986 nor a contract or a scheme approved under Chapter III of Part XIV of the Income and Corporation Taxes Act 1988.

Section 4 Consequential amendments

(1) In paragraph (b) of regulation 2 of the Occupational Pension Schemes (Discharge of Liability) Regulations 1985 for the words “either or both” there shall be substituted the words “one or more” and at the end of sub-paragraph (ii) of that paragraph there shall be added “and” and after that sub-paragraph there shall be inserted the following sub-paragraph —

(iii) in the case only of benefits which are not, and do not include, guaranteed minimum pensions, the award of rights to money-purchase benefits under a self-employed pension arrangement within the meaning of regulation 2D of the Occupational Pension Schemes (Transfer Values) Regulations 1985 or regulation 2A of the Personal Pension Schemes (Transfer Values) Regulations 1987.

(2) The Personal and Occupational Pension Schemes (Modification of Enactments) Regulations 1987( ) shall be amended as follows:—

(a) in paragraph (4) of regulation 4 the word “both” shall be inserted after the word “included” and at the end there shall be added the words “and a self-employed pension arrangement within the meaning of regulation 2D of the Occupational Pension Schemes (Transfer Values) Regulations 1985 or regulation 2A of the Personal Pension Schemes (Transfer Values) Regulations 1987”; and

(b) in paragraph 9(c) of Schedule 4 and paragraph 3 of Schedule 6, in the substituted paragraph (a) of sub-paragraph (5) after “appropriate scheme,” there shall be inserted “or of a self-employed pension arrangement within the meaning of regulation 2D of the Occupational Pension Schemes (Transfer Values) Regulations 1985 or regulation 2A of the Personal Pension Schemes (Transfer Values) Regulations 1987”.