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You are here: BAILII >> Databases >> United Kingdom Statutory Instruments >> The Personal Pension Schemes (Conversion of Retirement Benefits Schemes) Regulations 2001 No. 118 URL: https://www.bailii.org/uk/legis/num_reg/2001/20010118.html |
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Made | 23rd January 2001 | ||
Laid before the House of Commons | 24th January 2001 | ||
Coming into force | 6th April 2001 |
(2) In these Regulations, except where the context otherwise requires -
Application to convert eligible scheme to personal pension scheme
3.
- (1) The trustees of a qualifying scheme may apply to the Board for approval of the scheme as a personal pension scheme if the conditions prescribed in paragraphs (2) and (3) are satisfied.
(2) The first condition is that regulation 7 (valuation of prescribed member's benefits) has been complied with in respect of each prescribed member of the scheme.
(3) The second condition is that the value of the fund of a prescribed member, who is to be a continuing member of the scheme, does not exceed the permitted amount.
Documents to accompany application
4.
- (1) An application for approval under paragraph 3 of Schedule 23ZA must -
(2) The statements, which must be signed by or on behalf of the trustees, are -
Board's discretion to refuse approval: prescribed descriptions of retirement benefits scheme
5.
- (1) The descriptions of eligible scheme which are prescribed in respect of the Board's discretion to refuse approval under Schedule 23ZA are all descriptions of eligible scheme other than a simplified defined contribution scheme.
(2) In this regulation "simplified defined contribution scheme" has the meaning given by regulation 2 of the Retirement Benefits Schemes (Restriction on Discretion to Approve) (Additional Voluntary Contributions) Regulations 1993[7].
Board's discretion to refuse approval: prescribed classes of individual member
6.
- (1) The classes of individual member of an eligible scheme which are prescribed for the purposes of paragraph 4(1) of Schedule 23ZA are -
(2) The classes referred to in paragraph (1)(a) are those comprising -
(3) The class referred to in paragraph (1)(b) is that comprising members of the scheme -
(4) For the purposes of paragraph (2) a person is connected with another if he is -
Valuation of prescribed member's benefits
7.
- (1) Before making an application for approval as a personal pension scheme, the trustees of a qualifying scheme shall ascertain whether the conversion assets value, in respect of any prescribed member to whom they intend the proposed personal pension scheme to apply, exceeds the permitted amount.
(2) The conversion assets value must be calculated in accordance with normal actuarial practice.
(3) If the conversion assets value in respect of a prescribed member exceeds the permitted amount, regulation 8 applies to that member.
(4) In these Regulations "the permitted amount" means the maximum amount as described in regulation 8(3) of the Personal Pension Schemes (Transfer Payments) Regulations 2001[9].
Prescribed members whose conversion assets value exceeds permitted amount
8.
- (1) If -
the restriction in paragraph (2) applies to the prescribed member.
(2) The restriction is that the prescribed member may not become a member of the resultant personal pension scheme at the date of change, unless, before that date, the value of the prescribed member's fund, calculated in accordance with normal actuarial practice, is shown to be less than or equal to the permitted amount.
Restriction on discretion to approve: conversion of qualifying scheme
9.
- (1) The Board shall not approve a qualifying scheme as a personal pension scheme unless the proposed personal pension scheme complies with the restrictions imposed by regulations 10 and 11 in the case of an individual to whom paragraph (2) applies.
(2) This paragraph applies to an individual who is a controlling director and whom the trustees of the scheme which is the subject of the application under Schedule 23ZA intend should be a continuing member.
Restriction on discretion to approve: controlling directors' death benefits
10.
- (1) The restriction imposed by this regulation is that the accumulated value must be applied, after the death of a controlling director, in accordance with paragraph (3) or (4).
(2) In this regulation "the accumulated value" means the total of -
This paragraph is subject to the qualification in paragraph (4).
(4) If the administrator of a personal pension scheme is satisfied, having taking all reasonable steps -
the whole of the accumulated value may be applied to secure the payment of a lump sum.
Restrictions on discretion to approve: lump sum benefits to controlling directors under proposed personal pension scheme
11.
- (1) The restrictions imposed by this regulation are those specified in paragraphs (2) and (3).
(2) The restriction specified in this paragraph is that no amount may be paid to a controlling director by way of a lump sum on his pension date (as defined in section 630(1)) out of the conversion payment unless, within six months beginning with the date of change, the administrator of the retirement benefits scheme which is the subject of the application under Schedule 23ZA has given such a lump sum certificate as would be required under the rules of the retirement benefits scheme if it were making a transfer payment to a personal pension scheme.
(3) The restriction specified in this paragraph is that the amount that may be paid by way of lump sum as mentioned in paragraph (2) shall not exceed the sum found by the formula in paragraph (4).
(4) The formula referred to in paragraph (3) is -
B × EF |
R1 R2 |
(6) The references in paragraph (5) to the retail prices index shall be construed in accordance with section 833(2)[13] as if that paragraph were contained in the Income Tax Acts.
Tim Flesher
Dave Hartnett
Two of the Commissioners of Inland Revenue
23rd January 2001
[2] Section 611AA was inserted by section 103 of the Finance Act 1994 (c. 9).back
[3] Section 591(2A) was inserted by section 107(3) of the Finance Act 1994.back
[4] See paragraph 2 of Schedule 23ZA.back
[5] Section 630 was amended by Schedule 11 to the Finance Act 1995 (c. 4) and paragraph 5 of Schedule 13 to the Finance Act 2000.back
[6] Section 611 has been amended by paragraph 9(1) of Schedule 10 to the Finance Act 1999 (c. 16) and paragraph 4 of Schedule 13 to the Finance Act 2000.back
[8] Section 590C was inserted by paragraph 4 of Schedule 6 to the Finance Act 1989 (c. 26). There are amendments not relevant for the purposes of the present instrument. The permitted maximum for the year of assessment 2000-01 is £91,800.back
[10] Section 611(3) was amended by paragraph 4(3) of Schedule 13 to the Finance Act 2000.back
[11] Section 636 was amended by paragraph 1 of Schedule 11 to the Finance Act 1995 and paragraph 13 of Schedule 10 to the Finance Act 1999.back
[12] Section 636A was inserted by paragraph 1 of Schedule 11 to the Finance Act 1995 and amended by paragraph 14 of Schedule 10 to the Finance Act 1999 and paragraph 12 of Schedule 13 to the Finance Act 2000.back
[13] Section 833(2) was amended by Schedule 2 to the Transfer of Functions (Registration and Statistics) Order 1996 (S.I. 1996/273).back
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