The Personal and Occupational Pension Schemes (Tax Approval and Miscellaneous Provisions) Regulations 1988

• Citation: S.I. 1988/474
• Sections: 9

Section 1 Citation and commencement

(1) These Regulations may be cited as the Personal and Occupational Pension Schemes (Tax Approval and Miscellaneous Provisions) Regulations 1988.

(2) Subject to paragraph (3), these Regulations shall come into force as follows—

(a) regulations 1 to 4 and 6 to 9 on 6th April 1988; and

(b) regulation 5—

(i) for the purposes of occupational pension schemes on 6th April 1988; and

(ii) for the purposes of personal pension schemes on 1st July 1988.

(3) Regulation 2 shall come into force on 6th April 1988 immediately after regulation 7(5) of the Personal and Occupational Pension Schemes (Consequential Provisions) Regulations 1987 comes into force and regulation 4 and, for the purposes of occupational pension schemes, regulation 5 and, for all purposes, regulation 9 shall come into force on 6th April 1988 immediately after the provisions which they amend come into force.

Section 2 Amendment of the Occupational Pension Schemes (Discharge of Liability) Regulations 1985

In regulation 5(a) of the Occupational Pension Schemes (Discharge of Liability) Regulations 1985 the words “or her widower” shall be omitted.

Section 3 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 regulation 2(1)(b) of those Regulations for “either” there shall be substituted “any” and for “(a) and (b)” there shall be substituted “(a), (b) or (e)”;

(b) in regulation 2(3) of those Regulations—

(i) the word “and” at the end of sub-paragraph (c) shall be omitted;

(ii) for the full-stop at the end of sub-paragraph (d) there shall be substituted “; and” and

(iii) after sub-paragraph (d) there shall be inserted—

(e) a scheme which is approved by the Commissioners of Inland Revenue under Chapter IV of Part XIV of the Income and Corporation Taxes Act 1988 .

Section 4 Amendment of the Money Purchase Contracted-out Schemes Regulations 1987

For paragraph 4 of the Schedule to the Money Purchase Contracted-out Schemes Regulations 1987 there shall be substituted the following paragraph—

(4) An interest-bearing account (including, in the case of a building society, a share or deposit account) with—

(a) a building society as defined in the Building Societies Act 1986 ;

(b) a Pension Company within the meaning of the Building Societies (Designation of Pension Companies) Order 1987 which is an associated body of a building society within the meaning of section 18(17) of the Building Societies Act 1986;

(c) an institution authorised under Part I of the Banking Act 1987 .

Section 5 Amendment of the Pension Schemes (Voluntary Contributions Requirements and Voluntary and Compulsory Membership) Regulations 1987

The Pension Schemes (Voluntary Contributions Requirements and Voluntary and Compulsory Membership) Regulations 1987 shall be amended by inserting after regulation 2 the following regulation—

Provisions of the Income and Corporation Taxes Act 1988 under which tax-exemption or tax-approval may be given for the purposes of section 12

(2A) For the purposes of section 12 of the Act (which exempts scheme rules from the need to comply with that section to the extent necessary to qualify for tax-exemption or tax-approval) “tax-exemption” and “tax-approval” mean respectively exemption from tax and approval of the Inland Revenue under either Chapter I or Chapter IV of Part XIV of the Income and Corporation Taxes Act 1988.

Section 6 Amendment of the Personal Pension Schemes (Disclosure of Information) Regulations 1987

The Personal Pension Schemes (Disclosure of Information) Regulations 1987 shall be amended as follows—

(a) in regulation 4(5) of those Regulations after the reference to “4” there shall be inserted a reference to “, 5A”;

(b) in regulation 4(6) of those Regulations after the reference to “3,” there shall be inserted a reference to “5B,”;

(c) in regulation 5(3) of those Regulations for the words “Where the scheme is not” there shall be substituted the words “Whether or not the scheme is or has been”;

(d) in Schedule 1 after paragraph 5 there shall be inserted the following paragraph—

(5A) Whether the scheme is approved by the Commissioners of Inland Revenue either—

(a) as a personal pension scheme under Chapter IV of Part XIV of the Income and Corporation Taxes Act 1988; or

(b) as a retirement benefits scheme under Chapter I of that Part of that Act by reference to section 591(2)(h) of that Act,

and if not whether an application for such approval is under consideration by the Commissioners.

(5B) How tax relief on members' contributions is effected.

(e) in paragraph 1(a) of Schedule 2 after the words “the 1986 Act ” there shall be inserted the words “(identifying separately that part of the contributions which is attributable to tax relief on the employee’s share of minimum contributions, being the difference between that share and the grossed-up equivalent of that share; the expressions “employee’s share” and “grossed-up equivalent” having the meanings given to them by section 649(2) of the Income and Corporation Taxes Act 1988)”.

Section 7 Amendment of the Personal Pension Schemes (Transfer Values) Regulations 1987

In regulation 2(a) of the Personal Pension Schemes (Transfer Values) Regulations 1987 there shall be inserted after head (ii)—

(ii)(aa) is a scheme which is approved by the Commissioners of Inland Revenue under Chapter IV of Part XIV of the Income and Corporation Taxes Act 1988, or

Section 8 Amendment of the Personal and Occupational Pension Schemes (Modification of Enactments) Regulations 1987

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

(a) in regulation 3(4) for “the Personal Pension Schemes (Appropriate Schemes) Regulations 1987” there shall be substituted “the Personal Pension Schemes (Appropriate Schemes) Regulations 1988”;

(b) after paragraph (3) of regulation 4 there shall be inserted—

(4) Paragraphs 9(2)(a) and 15(3)(b) of Schedule 16 shall have effect as if “scheme” included a personal pension scheme.

(c) in paragraph 16 of Schedule 4 after the words “section 41E(2)(a), (b) and (d)” there shall be inserted the words “but as if in paragraph (d) of that subsection the words “or prospective member” were omitted”.

Section 9 Amendment of the Personal and Occupational Pension Schemes (Protected Rights) Regulations 1987

The Personal and Occupational Pension Schemes (Protected Rights) Regulations 1987 shall be amended as follows—

(a) in regulation 3—

(i) the word “and” at the end of paragraph (b) shall be omitted;

(ii) in paragraph (c) for the words “the Personal Pension Schemes (Appropriate Schemes) Regulation 1987” there shall be substituted the words “the Personal Pension Schemes (Appropriate Schemes) Regulations 1988 ” and for the full stop at the end there shall be substituted “; and”;

(iii) after paragraph (c) of regulation 3 there shall be inserted the following paragraph—

(d) in the case of a personal pension scheme, a payment attributable to tax relief on the employee’s share of minimum contributions, being the difference between that share and the grossed-up equivalent of that share; the expressions “employee’s share” and “grossed-up equivalent” having the meanings given to them by section 649(2) of the Income and Corporation Taxes Act 1988.

(b) in regulation 9(a) after the words “defined in that Act” there shall be inserted the words “or is a friendly society which satisfies the conditions set out in regulation 3(2) of the Personal Pension Schemes (Appropriate Schemes) Regulations 1988”; and

(c) after regulation 14 there shall be inserted the following regulation—

Tax-exemption and tax-approval

(15) For the purposes of paragraph 12 of Schedule 1 (nothing in Schedule 1 to be taken to prejudice any requirements with which a scheme must comply if it is to qualify for tax-exemption or tax-approval) tax-exemption and tax-approval mean respectively exemption from tax and approval of the Inland Revenue under Chapter I or Chapter IV of Part XIV of the Income and Corporation Taxes Act 1988.