The Social Security (Miscellaneous Amendments) Regulations 2017

• Citation: S.I. 2017/307
• Sections: 5

Section 1 Citation and commencement

These Regulations may be cited as the Social Security (Miscellaneous Amendments) Regulations 2017 and come into force on 6th April 2017.

Section 2 Amendment of the Social Security (Contributions) Regulations 2001

The Social Security (Contributions) Regulations 2001 are amended as follows.

Section 3 Amendment of the Social Security (Contributions) Regulations 2001

After regulation 40A (exception from liability to pay Class 1A contributions in respect of an amount representing an amount on which Class 1 or Class 1A contributions have already been paid pursuant to the Social Security Contributions (Limited Liability Partnership) Regulations 2014) insert—

Exception from liability to pay Class 1A contributions for tax year 2017-18 in respect of sporting testimonial payments

(40B)

(1) Paragraph (2) applies to Class 1A contributions payable for the tax year 2017-18 where—

(a) the whole or part of the general earnings in respect of which the Class 1A contribution is payable consists of a sporting testimonial payment, and

(b) the person making the sporting testimonial payment is the controller of the independent sporting testimonial committee.

(2) Class 1A contributions shall not be payable by the secondary contributor in respect of the sporting testimonial payment for the tax year 2017-18.

(3) In this regulation—

(a) “controller” means the person who controls the disbursement of any money raised by the independent sporting testimonial committee for or for the benefit of an individual who is or has been employed as a professional sports person,

(b) “independent sporting testimonial committee” means a committee which acts independently of the secondary contributor in organising a sporting testimonial and making the sporting testimonial payment, and

(c) “sporting testimonial” and “sporting testimonial payment” have the meaning given in section 226E of ITEPA 2003 (sporting testimonial payments) .

Section 4 Amendment of the Social Security (Contributions) Regulations 2001

In Part 6 of Schedule 3 (pension payments and pension contributions disregarded) , after paragraph 12 (independent advice in respect of conversions and transfers of pension scheme benefits) insert—

Payments and reimbursements of the cost of pensions advice

(13)

(1) A payment or reimbursement of costs incurred, by or in respect of an employee or former or prospective employee, in obtaining relevant pensions advice, if Condition A or B is met.

(2) This paragraph does not apply in relation to a person in a tax year so far as the total amount of any payments and reimbursements under sub-paragraph (1) in the person’s case in that year exceeds £500.

(3) If in a tax year there is in relation to an individual more than one person who is an employer or former employer, sub-paragraphs (1) and (2) apply in relation to the individual as employee or former or prospective employee of any one of those persons separately from their application in relation to the individual as employee or former or prospective employee of any other of those persons.

(4) “Relevant pensions advice”, in relation to a person, means information or advice in connection with—

(a) the person’s pension arrangements; or

(b) the use of the person’s pension funds.

(5) Condition A is that the payment or reimbursement is provided under a scheme that is open—

(a) to the employer’s employees generally; or

(b) generally to the employer’s employees at a particular location.

(6) Condition B is that the payment or reimbursement is provided under a scheme that is open generally to the employer’s employees, or generally to those of the employer’s employees at a particular location, who—

(a) have reached the minimum qualifying age; or

(b) meet the ill-health condition.

(7) The “minimum qualifying age”, in relation to an employee, means the employee’s relevant pension age less 5 years.

(8) “Relevant pension age”, in relation to an employee, means—

(a) where paragraph 22 or 23 of Schedule 36 to the Finance Act 2004 applies in relation to the employee and a registered pension scheme of which the employee is a member, the employee’s protected pension age (see paragraphs 22(8) and 23(8) of Schedule 36 to the Finance Act 2004); or

(b) in any other case, the employee’s normal minimum pension age, as defined by section 279(1) of the Finance Act 2004.

(9) The “ill-health condition” is met by an employee if the employer is satisfied, on the basis of evidence provided by a registered medical practitioner, that the employee is (and will continue to be) incapable of carrying on his or her occupation because of physical or mental impairment.

Section 5 Amendment of the Social Security (Categorisation of Earners) Regulations 1978

(1) Part 3 of Schedule 1 (employment to be disregarded subject to the exceptions in column (B)) to the Social Security (Categorisation of Earners) Regulations 1978 is amended as follows.

(2) In column (A), at the end , insert—

(14) Employment by the International Finance Corporation (“IFC”) of a person who is—

(a) exempt from tax by virtue of article 3 of, and section 9 of article 6 of the Agreement establishing the IFC as set out in the Schedule to, the International Finance Corporation Order 1955 , and

(b) a member of a scheme established by or on behalf of the IFC which provides for a pension or any other benefit on cessation of the employment.

(15) Employment by the Asian Infrastructure Investment Bank (“AIIB”) of a person who is—

(a) exempt from tax by virtue of regulation 18(2) of the Asian Infrastructure Investment Bank (Immunities and Privileges) Order 2015 , and

(b) a member of a scheme established by or on behalf of the AIIB which provides for a pension or any other benefit on cessation of the employment.

(3) In column (B), at the end, insert—

(14) None.

(15) None.