The Registered Pension Schemes (Authorised Member Payments) Regulations 2006

• Citation: S.I. 2006/137
• Sections: 2

Section 1 Citation and commencement

These Regulations may be cited as the Registered Pension Schemes (Authorised Member Payments) Regulations 2006 and shall come into force on 6th April 2006.

Section 2 Authorised member payments: demutualisation of insurance companies and members of qualifying pension schemes

(1) Any payment made—

(a) by a company to—

(i) a member of a qualifying pension scheme, or

(ii) a person who is the beneficiary under a qualifying annuity contract;

(b) in connection with the demutualisation of an insurance company,

(c) as compensation to that member or person, for the loss of his rights as a member of the insurance company, and

(d) without reducing the total value of the sums and assets held for the purposes of the scheme, or the value or amount of the annuity, as the case may be,

is prescribed for the purposes of section 164 of the Finance Act 2004 (authorised member payments under registered pension schemes).

(2) In this regulation—

“the commencement date” means 6 th April 2006;

“demutualisation” means a transfer under an insurance business transfer scheme of the whole or any part of the business carried on by a mutual insurance company to one or more companies with a share capital;

“insurance business transfer scheme” means a scheme falling within section 105 FISMA 2000 ;

“mutual insurance company” means an insurance company not having a share capital;

“qualifying annuity contract” means an annuity contract made with an insurance company—

by means of which benefits provided under a pension scheme which, at the time of the purchase of the annuity, fell within one of the categories set out in paragraphs (a) to (c) and (g) of paragraph 1(1) of Schedule 36 to the Finance Act 2004, have been secured, and

which, immediately before the commencement date, provided for the immediate payment of benefits; or

issued out of a trust scheme within section 620(5) of the Income and Corporation Taxes Act 1988, or

which is a lifetime annuity within the meaning in paragraph 3 of Schedule 28 to the Finance Act 2004, or a short term annuity within the meaning in paragraph 6 of that Schedule;

“qualifying pension scheme” means a registered pension scheme which is neither an occupational pension scheme nor a public service pension scheme; and

expressions defined in section 150, 151 or 280(1) of the Finance Act 2004 have the same meanings in this regulation as they have for the purposes of Part 4 of that Act.