UKPGA-2004-12 Finance Act 2004 UK

For the Table of rates of duty in Schedule 1 to the Tobacco Products Duty Act 1979 (c. 7) substitute—

This section shall be deemed to have come into force at 6 o'clock in the evening of 17th March 2004.

In section 36(1AA)(a) of the Alcoholic Liquor Duties Act 1979 (c. 4) (rate of duty on beer) for “£12.22” substitute “ £12.59 ”.

This section shall be deemed to have come into force at midnight on 21st March 2004.

For Part 1 of the Table of rates of duty in Schedule 1 to the Alcoholic Liquor Duties Act 1979 (rates of duty on wine and made-wine) substitute—

This section shall be deemed to have come into force at midnight on 21st March 2004.

At the beginning of Part 6 of the Alcoholic Liquor Duties Act 1979 (c. 4) (general control provisions) under the heading “Sale of dutiable alcoholic liquors” insert—.

Before Schedule 3 to that Act insert the Schedule 2A set out in Schedule 1 to this Act.

In section 12(2) of the Finance Act 1994 (c. 9) (defaults engaging Commissioners' power to assess excise duty to the best of their judgement) after paragraph (c) insert—.

In section 14(1) of that Act (reviewable decisions) after paragraph (bc) insert—.

The amendments made by this section have effect in relation to retail containers containing alcoholic liquor if the excise duty point for the alcoholic liquor falls on or after such day as the Treasury may by order made by statutory instrument appoint.

An order under subsection (5) may contain such supplemental and transitional provision and savings as the Treasury think fit in connection with the coming into effect of those amendments.

In subsection (5) “excise duty point” has the meaning given by section 1 of the Finance (No. 2) Act 1992 (c. 48).

In section 6 of the Hydrocarbon Oil Duties Act 1979 (c. 5) (hydrocarbon oil: rates of duty)—

In section 6AA(3) of that Act (biodiesel: rate of duty) for “£0.2710” substitute “ £0.2852 ”.

In section 11(1) of that Act (rebate on heavy oil)—

In section 13A(1) of that Act (rebate on unleaded petrol) for “£0.0601” substitute “ £0.0620 ”.

In section 14(1) of that Act (rebate on light oil for use as furnace fuel) for “£0.0382” substitute “ £0.0624 ”.

This section shall come into force on 1st September 2004.

At the end of section 5 of the Hydrocarbon Oil Duties Act 1979 (road fuel gas) (which becomes subsection (1)) add—

For section 8(3) of that Act (rate of duty on road fuel gas) substitute—

After section 21(2) of that Act (regulations) insert—

This section shall come into force on 1st September 2004.

For section 1(3A) and (3B) of the Hydrocarbon Oil Duties Act 1979 (descriptions of hydrocarbon oil: ultra low sulphur petrol and unleaded petrol) substitute—

For section 1(6) of that Act (ultra low sulphur diesel) substitute—

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For section 2A(1) of that Act (power to amend definitions) substitute—

In section 6(1A) of that Act (rates of duty)—

In section 13AA(6) of that Act (restrictions on use of rebated kerosene) after “which is not ultra low sulphur diesel” insert “ or sulphur-free diesel ”.

In section 13A(1) of that Act (rebate on unleaded petrol) after “, other than ultra low sulphur petrol” insert “ and sulphur-free petrol ”.

In section 27 of that Act (interpretation)—

This section shall come into force on 1st September 2004.

For section 20AAA of the Hydrocarbon Oil Duties Act 1979 (mixing of rebated oil) substitute—

In section 20AAB of that Act (mixing of rebated oil: supplementary)—

Schedule 2A to that Act shall cease to have effect.

This section—

But no duty shall be charged on the supply of a mixture under section 20AAA(1) or (2) of that Act (as substituted by subsection (1) above) if duty was charged on the production of the mixture under section 20AAA as it had effect before the date on which this Act is passed.

After section 2AA of the Hydrocarbon Oil Duties Act 1979 (c. 5) (biodiesel) insert—

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After section 6AC of that Act (biodiesel: application of provisions relating to hydrocarbon oil) insert—

In section 6A(1) of that Act (fuel substitutes) for “which is not hydrocarbon oil, biodiesel or bioblend” substitute

At the end of section 11(6) of that Act (rebate on heavy oil: exception) add “ or bioethanol blend ”.

At the end of section 13AA of that Act (restrictions on use of rebated kerosene) add—

In section 14 of that Act (rebate on light oil for use as furnace fuel) after subsection (1) insert—

In section 22 of that Act (prohibition on use of petrol substitutes on which duty has not been paid)—

In section 27(1) of that Act (interpretation) after the definition of “biodiesel” insert—.

This section shall come into force on 1st January 2005.

But no duty shall be charged under section 6AD or 6AE of that Act (inserted by subsection (3) above) in respect of the chargeable use of any goods, or the setting aside of any goods for a chargeable use, if before 1st January 2005—

In section 6AA(2) of the Hydrocarbon Oil Duties Act 1979 (c. 5) (excise duty on biodiesel) after paragraph (b) add—

This section shall come into force on 1st January 2005.

For section 6A(2)(b) of the Hydrocarbon Oil Duties Act 1979 (fuel substitutes: additives and extenders) substitute—

This section shall have effect in relation to anything done on or after the date on which this Act is passed.

Section 10 of the Finance Act 1993 (c. 34) (application of Hydrocarbon Oil Duties Act 1979 to certain substances) shall be amended as follows.

In subsection (1) for “mineral oil” substitute “ energy product ”.

In subsection (2)—

In subsection (3)—

For subsection (4) substitute—

For subsection (6) substitute—

For the heading substitute “ Extension of Hydrocarbon Oil Duties Act 1979 to energy products ”.

The Betting and Gaming Duties Act 1981 (c. 63) shall be amended as follows.

For section 4 (pool betting, the Tote, &c.) substitute—

In section 5(7) (net stake receipts) and section 5B(4) (liability to pay) for “section 4(1) to (3)” substitute “ section 4(1) ”.

In section 7B (conditions for charging pool betting duty)—

In section 9(2)(a) (prohibitions for protection of revenue)—

In section 10(2) (definition of pool betting) for the definition of “totalisator odds” substitute—

In section 12(4) (interpretation)—

After section 12(4) insert—

In paragraph 10(1) of Schedule 1 (betting duties: power of entry) omit the words “, or that facilities for sponsored pool betting on those events are being or are to be provided,”.

The amendments made by this section have effect in relation to accounting periods ending on or after the date of the passing of this Act.

For the Table in section 11(2) of the Finance Act 1997 (c. 16) (rates of gaming duty) substitute—

This section has effect in relation to accounting periods beginning on or after 1st April 2004.

In section 23 of the Betting and Gaming Duties Act 1981 (c. 63) (amount of duty payable on amusement machine licence) for the Table in subsection (2) substitute—

This section has effect in relation to any amusement machine licence for which an application is received by the Commissioners of Customs and Excise on or after 22nd March 2004.

The Vehicle Excise and Registration Act 1994 (c. 22) is amended as follows.

After section 19B insert—.

In section 58 (fees prescribed by regulations) in subsection (1) (fees prescribed by regulations under certain provisions to be of amount approved by Treasury) for “or 14(4)(b)” substitute “ , 14(4)(b) or 19C(2) ”.

This section has effect in relation to licences issued on or after such day as the Secretary of State may by order made by statutory instrument appoint.

Schedule 2 (which relates to the disclosure of schemes for the avoidance of value added tax) has effect.

Subsection (1) and that Schedule—

After section 43A of the Value Added Tax Act 1994 (c. 23) (groups: eligibility) insert—

After section 43C of that Act insert—

In section 43(1) of that Act (effect of treatment as group) for “sections 43A to 43C” substitute “ sections 43A to 43D ”.

In section 43B(1), (2)(a), (5)(a) and (5)(b) and section 43C(3)(b) of that Act (groups: applications for membership and termination of membership) for “under section 43A(1)” substitute “ by virtue of section 43A ”.

In section 97(4) of that Act (orders, &c.: affirmative resolution) after paragraph (c) insert—.

After section 9 of the Value Added Tax Act 1994 (c. 23) insert—

This section has effect in relation to supplies made on or after 1st January 2005.

The Value Added Tax Act 1994 (c. 23) is amended as follows.

In Schedule 6 (valuation: special cases) after paragraph 1 (supply to connected person at less than market value etc) insert—.

In section 83(v) (appeal to tribunal with respect to any direction under paragraph 1 or 2 of Schedule 6 etc) after “paragraph 1” insert “ , 1A ”.

In section 97 (orders, rules and regulations) in subsection (4) (orders to which the House of Commons affirmative procedure in subsection (3) applies) after paragraph (e) insert—.

The amendment made by subsection (2) applies in relation to any use or availability for use on or after the appointed day (whatever the date of the directions mentioned in paragraph 5(4) of Schedule 4 to the Value Added Tax Act 1994 (c. 23)).

In subsection (5) “the appointed day” means such day as the Treasury may by order made by statutory instrument appoint.

This section has effect in relation to—and in the following provisions of this section “relevant period” means any of those years of assessment or accounting periods.

In this section “records relating to an arm’s length provision” means such records as might have been requisite for the purpose of making and delivering a correct and complete return, so far as relating to the determination of the provision asserted to be the arm’s length provision for the purposes of Schedule 28AA to the Taxes Act 1988 in a case where that Schedule applies.

In relation to any relevant period, the following provisions (which provide for penalties for failure to keep and preserve records for purposes of returns)—do not apply if the records which the person in question fails to keep or preserve are records relating to an arm’s length provision.

In the application of subsection (2) in relation to paragraph 23 of Schedule 18 to the Finance Act 1998—

Where a person delivers an incorrect return for any relevant period, he shall not be regarded as doing so negligently for the purposes of—by reason only of his failure, or the failure of any other person, to keep or preserve records relating to an arm’s length provision.

For the purposes of section 95A of the Taxes Management Act 1970, where a partner delivers an incorrect partnership return for any relevant period—by reason only of his failure, or the failure of any other person, to keep or preserve records relating to an arm’s length provision.

For the purposes of section 99 of the Taxes Management Act 1970 (penalty for assisting in preparation of incorrect documents) a person shall not be taken to know that a return is incorrect by reason only of his failure, or the failure of any other person, to keep or preserve records relating to an arm’s length provision.

In section 209 of the Taxes Act 1988 (meaning of “distribution”) the following provisions shall cease to have effect—

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In this section “the amending provisions” means—

The amendments made by those provisions have effect in relation to chargeable periods beginning on or after 1st April 2004 (whenever the actual provision, within the meaning of Schedule 28AA to the Taxes Act 1988, is or was made or imposed).

Where an accounting period of a company begins before, and ends on or after, 1st April 2004, it shall be assumed for the purposes of the amending provisions, the amendments which they make and subsection (2) that that accounting period (“the straddling period”) consists of two separate accounting periods—and the company’s profits and losses shall be computed accordingly for tax purposes.

Where a period of account of any person within the charge to income tax begins before, and ends on or after, 6th April 2004, it shall be assumed for the purposes of the amending provisions, the amendments which they make and subsection (2) that that period (“the straddling period of account”) consists of two separate periods of account—and the person’s profits and losses shall be computed accordingly for the purposes of income tax.

The amendments made by sections 38 to 41 and Schedule 6 have effect for accounting periods beginning on or after 1st April 2004.

This is subject to the transitional provisions in sections 43 and 44 and that Schedule.

Any amount which, apart from this subsection, would have fallen to be treated under the old section 75(3) as if it had been disbursed as expenses of management for the first new accounting period of a company shall instead be treated as if it were expenses of management deductible for that period by virtue of the new section 75(9).

To the extent that any amount was deductible under subsection (1) of section 75 for an old accounting period, the amount shall not again be deductible under that subsection for a new accounting period.

Subsection (2) is without prejudice to the old section 75(3) and the new section 75(9) (carry forward of unrelieved excess to later accounting period).

To the extent that an amount—the amount shall be deductible under section 75(1) for the first new accounting period of the company.

Where there is an accounting period that begins before, and ends on or after, 1st April 2004 (“the commencement date”), it shall be assumed, for the purpose of determining the amounts that are deductible for that period under section 75(1) of the Taxes Act 1988, that that accounting period (the “straddling period”) consists of two separate accounting periods—but this is subject to subsection (6).

In the case of an investment company, subsection (5) does not have effect for the purpose of determining the amounts that are deductible for the straddling period under section 75(1) by virtue of—

Where, for the purposes of section 768B or 768C of the Taxes Act 1988, there is a change in the ownership of a company during the straddling period, then for the purposes of the section in question (and Schedule 28A to that Act), before making any such division as is required by section 768B(4) or 768C(3) of that Act,—and section 768B or 768C of, and Schedule 28A to, the Taxes Act 1988 shall have effect accordingly.

In this section—

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The Treasury may by order make such amendments, repeals or revocations in any enactment (including an enactment amended by this Act) as appear to them to be appropriate in consequence of sections 38 to 40 and 45 and Schedule 6.

The power conferred by subsection (1) to make an order includes power—

Any order made under this section on or before 31st December 2004 may make provision having effect in relation to accounting periods ending before the date on which the order is made (but not before 1st April 2004).

In this section—

Schedule 10 makes amendments of provisions of the Tax Acts that operate by reference to accounting practice.

In that Schedule—

The amendments have effect in relation to—

Expenditure by a company on research and development, if not of a capital nature, is not prevented from being regarded for tax purposes as deductible in computing profits by reason of the fact that for accounting purposes it is brought into account by the company in determining the value of an intangible asset.

Subsection (1) applies, in particular, for the purposes of—

Where expenditure is brought into account by a company for tax purposes in accordance with subsection (1), no deduction may be made in computing for tax purposes the profits of the company in respect of the writing down of so much of the value of an intangible asset as is attributable to that expenditure.

Expenditure shall not be regarded by virtue of subsection (1) as deductible in computing a company’s profits for an accounting period to the extent that—

In this section—

This section shall come into force in accordance with provision made by the Treasury by order made by statutory instrument.

A company must give notice to the Board—

The notice required by this section—

“Prescribed” in subsection (2)(c) means prescribed by regulations made by the Board.

A company that has a reasonable excuse for failing to give notice as required by this section—

In this section—

In the second column of the Table in section 98 of the Taxes Management Act 1970 (c. 9) (penalty for failure to provide information), at the appropriate place insert— “ section 55 of the Finance Act 2004 ”.

This section applies in relation to accounting periods beginning on or after the day on which this Act is passed.

A company is not required to give notice under section 55 of the beginning of an accounting period if it reasonably expects that—

Subsection (3) applies if—

The subsequent accounting period is to be treated for the purposes of section 55 as if it does not immediately follow the end of a previous accounting period.

If by reason of subsection (1) ceasing to apply a company becomes subject to the duty to give notice under section 55 of the beginning of an accounting period the notice must be given not later than three months after the date on which it becomes subject to that duty.

Where subsection (1) would apply as regards a company if the company were to make a claim to obtain relief under section 6(2)(a) or (3)(a) of TIOPA 2010 in respect of a disposal that has an appropriate connection to a collective investment vehicle for the purposes of paragraph 6 of Schedule 5AAA to TCGA 1992, the company is not required to make such a claim in order to obtain relief in respect of the disposal (despite section 6(6) of TIOPA 2010).

This Chapter provides for certain payments (see section 60) under construction contracts to be made under deduction of sums on account of tax (see sections 61 and 62).

In this Chapter “construction contract” means a contract relating to construction operations (see section 74) which is not a contract of employment but where—

In sections 60 and 61 “the contractor” has the meaning given by this section.

In this Chapter—

To the extent that any provision of this Chapter would not, apart from this subsection, form part of the Tax Acts, it shall be taken to form part of those Acts.

This section applies to the following bodies or persons—

But this section only applies to a body or person falling within any of paragraphs (b) to (fa) or (h) to (k) of subsection (1) at any time if, in the period of one year ending with that time, the body or person's expenditure on construction operations exceeds £3,000,000.

Where the condition in subsection (1)(l) or (2) is met in relation to a body or person at any time, the body or person may elect for the condition to be treated as no longer being met if, at that time, the body or person is not expected to make any further expenditure on construction operations.

Where the condition in subsection (1)(l) or (2) ceases to be met in relation to a body or person at any time, the body or person may elect for the condition to be treated as continuing to be met until the body or person is not expected to make any further expenditure on construction operations.

Subsections (3) and (3A) do not prevent the condition in subsection (1)(l) or (2) from being met again in relation to the body or person.

Where the whole or part of a trade is transferred by a company (“the transferor”) to another company (“the transferee”) and Chapter 1 of Part 22 of the Corporation Tax Act 2010 has effect in relation to the transfer, then in determining for the purposes of this section the amount of expenditure incurred by the transferee—

In this section—

In this section references to a body or person include references to an office or department.

The Board of Inland Revenue may make regulations amending this section for the purpose of removing references to bodies which have ceased to exist.

This section is subject to section 73A (designated international organisations: exemption from section 59).

In this Chapter “contract payment” means any payment which is made under a construction contract and is so made by the contractor (see section 57(3)) to—

But a payment made under a construction contract is not a contract payment if any of the following exceptions applies in relation to it.

This exception applies if the payment is treated as earnings from an employment by virtue of Chapter 7 of Part 2 of the Income Tax (Earnings and Pensions) Act 2003 (c. 1) (agency workers).

This exception applies in so far as—

But the exception in subsection (3A) does not apply if, in the case of the engagement mentioned in paragraph (b) of that subsection, the client for the purposes of section 61M(1) of ITEPA 2003—

Sections 60I (when a person has a UK connection for a tax year), 61K(3) (when a person qualifies as medium or large for a tax year) and 61L (meaning of public authority) of ITEPA 2003 apply for the purposes of subsection (3B).

This exception applies if the person to whom the payment is made or, in the case of a payment made to a nominee, each of the following persons—is registered for gross payment when the payment is made. But this is subject to subsections (5) and (6).

Where a person is registered for gross payment as a partner in a firm (see section 64), subsection (4) applies only in relation to payments made under contracts under which—

Where a person is registered for gross payment otherwise than as a partner in a firm but he is or becomes a partner in a firm, subsection (4) does not apply in relation to payments made under contracts under which—

This exception applies if such conditions as may be prescribed in regulations made by the Board of Inland Revenue for the purposes of this subsection are satisfied; and those conditions may relate to any one or more of the following—

For the purposes of this Chapter a payment (including a payment by way of loan) that has the effect of discharging an obligation under a contract relating to construction operations is to be taken to be made under the contract; and if—the payment is for those purposes to be taken to be made to A.

On making a contract payment the contractor (see section 57(3)) must deduct from it a sum equal to the relevant percentage of so much of the payment as is not shown to represent the direct cost to the sub-contractor of materials used or to be used in carrying out the construction operations to which the contract under which the payment is to be made relates.

In subsection (1) “the relevant percentage” means such percentage as the Treasury may by order determine.

That percentage must not exceed—

Subsection (5) applies where the contractor is a person falling within section 59(1)(l).

An officer of Revenue and Customs may, if the officer considers it appropriate to do so, by notice in writing—

The period referred to in subsection (5)(a)—

In subsection (5) “specified” means specified in the notice.

A sum deducted under section 61 from a payment made by a contractor—

If the sub-contractor is not a company a sum deducted under section 61 and paid to the Board is to be treated as being income tax paid in respect of the sub-contractor’s relevant profits. If the sum is more than sufficient to discharge his liability to income tax in respect of those profits, so much of the excess as is required to discharge any liability of his for Class 4 contributions is to be treated as being Class 4 contributions paid in respect of those profits.

If the sub-contractor is a company—

Regulations under subsection (3) may include provision authorising an officer of Revenue and Customs to—

Regulations under subsection (3) that include provision of the kind mentioned in subsection (3A) may, for example, include provision—

In subsections (3A) and (3B), “set-off claim” means a claim for treating a sum deducted under section 61 as paid on account of any relevant liabilities.

For the purposes of this section the “relevant liabilities”of a sub-contractor are any liabilities of the sub-contractor, whether arising before or after the deduction is made, to make a payment to the Inland Revenue in pursuance of an obligation as an employer or contractor.

In this section—

References in this section to regulations are to regulations made by the Board of Inland Revenue.

Regulations under this section may contain such supplementary, incidental or consequential provision as appears to the Board to be appropriate.

This section applies to a person who—

If this section applies, an officer of Revenue and Customs may determine that the person is liable to pay to the Commissioners an amount equal to 20% of the payment referred to in subsection (1).

In this section, a “connected party” is

This section applies to a person who—

If this section applies, an officer of Revenue and Customs may determine that the person is liable to pay to the Commissioners an amount equal to the sum which the return treats as paid on account of the person’s liabilities.

If the Board of Inland Revenue are satisfied, on the application of an individual or a company, that the applicant has provided—the Board must register the individual or company under this section.

If the Board are satisfied that the requirements of subsection (2), (3) or (4) of section 64 are met, the Board must register—for gross payment.

In any other case, the Board must register the individual or company for payment under deduction.

This section sets out the requirements (in addition to that in subsection (1) of section 63) for an applicant to be registered for gross payment.

Where the application is for the registration for gross payment of an individual (otherwise than as a partner in a firm), he must satisfy the conditions in Part 1 of Schedule 11 to this Act.

Where the application is for the registration for gross payment of an individual or a company as a partner in a firm—

Where the application is for the registration for gross payment of a company (otherwise than as a partner in a firm)—

Where the applicant is a company, the Board may direct that the conditions in Part 1 of Schedule 11 to this Act or such of them as are specified in the direction shall apply to—as if each of them were an applicant for registration for gross payment.

See also section 65(1) (power of Board to make direction under subsection (5) on change in control of company applying for registration etc).

In subsection (5) “director” has the meaning given by section 67 of the Income Tax (Earnings and Pensions) Act 2003 (c. 1).

Where it appears to the Board of Inland Revenue that there has been a change in the control of a company—the Board may make a direction under section 64(5).

The Board may make regulations requiring the furnishing of information with respect to changes in the control of a company—

In this section references to a change in the control of a company are references to such a change determined in accordance with section 995 of the Income Tax Act 2007.

The Board of Inland Revenue may at any time make a determination cancelling a person’s registration for gross payment if it appears to them that—

Where the Board make a determination under subsection (1), the person’s registration for gross payment is cancelled with effect from the end of a prescribed period after the making of the determination (but see section 67(5)).

The Board of Inland Revenue may at any time make a determination cancelling a person’s registration for gross payment if they have reasonable grounds to suspect that the person—

The Commissioners may at any time make a determination cancelling a person’s registration for gross payment if—applies to the person.

Where the Commissioners make a determination under subsection (3) or subsection (3A), the person’s registration for gross payment is cancelled with immediate effect.

On making a determination under this section cancelling a person’s registration for gross payment, the Board must without delay give the person notice stating the reasons for the cancellation.

Where a person’s registration for gross payment is cancelled by virtue of a determination under subsection (1),

Where a person’s registration for gross payment is cancelled by virtue of a determination under subsection (3) or subsection (3A),

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In this section “a prescribed period” means a period prescribed by regulations made by the Board.

A person aggrieved by—may by notice appeal ....

The notice must be given to the Board of Inland Revenue within 30 days after the refusal or cancellation.

The notice must state the person’s reasons for believing that—

The jurisdiction of the tribunal on such an appeal that is notified to the tribunal shall include jurisdiction to review any relevant decision taken by the Board of Inland Revenue in the exercise of their functions under section 63, 64, 65 or 66.

Where a person appeals against the cancellation of his registration for gross payment by virtue of a determination under section 66(1), the cancellation of his registration does not take effect until whichever is the latest of the following—

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The Board of Inland Revenue may make regulations requiring persons who make payments under contracts relating to construction operations, except in prescribed circumstances, to verify with the Board whether a person to whom they are proposing to make—is registered for gross payment or for payment under deduction.

The provision that may be made by regulations under subsection (1) includes provision—

The Board of Inland Revenue may make regulations requiring the Board to notify persons of a prescribed description who make payments under contracts relating to construction operations that—

The provision that may be made by regulations under subsection (1) or (3) includes provision for a person to be entitled to assume, except in prescribed circumstances, that—has not subsequently ceased to be so registered.

In this section “prescribed” means prescribed by regulations under this section.

The Board of Inland Revenue may make regulations requiring persons who make payments under construction contracts—

The provision that may be made by regulations under subsection (1)(a) includes provision requiring, except in such circumstances as may be prescribed,—

The Board of Inland Revenue may make regulations with respect to—

Regulations under this section may make provision—

In this section “prescribed” means prescribed by regulations under this section.

The Commissioners for Her Majesty's Revenue and Customs may by regulations make provision for and in connection with requiring the giving, by prescribed persons and in prescribed circumstances, of security for the payment of amounts that a person is or may be liable to pay to the Commissioners under this Chapter.

Regulations under this section must provide that security may be required only where an officer of Revenue and Customs considers it necessary for the protection of the revenue.

Regulations under this section must provide for a right of appeal against—

A person commits an offence if—

A person who commits an offence under subsection (4) is liable on summary conviction—

In this section—“prescribed” means prescribed in regulations under this section;“security” includes further security.

The Board of Inland Revenue must make regulations with respect to the collection and recovery, whether by assessment or otherwise, of sums required to be deducted from any payments under section 61.

The regulations may include any matters with respect to which PAYE regulations may be made.

Interest required to be paid by the regulations—

This section applies in a case within subsection (2), (3) or (4).

A case is within this subsection if a person (“A”)—for the purpose of becoming registered for gross payment or for payment under deduction.

A case is within this subsection if a person (“A”) who exercises influence or control over another person (“B”) or is in a position to do so —for the purpose of enabling or facilitating B to become registered for gross payment or for payment under deduction.

A case is within this subsection if a person (“A”) who exercises influence or control over another person (“B”) or is in a position to do so—for the purpose of enabling or facilitating B to become registered for gross payment or for payment under deduction.

In a case where this section applies, A is liable to a penalty not exceeding £3,000.

A person is liable to a penalty not exceeding 30% of any amount that they are determined to be liable to pay under section 62A (payments made in the knowledge of deliberate failures to comply) or 62B (returns made in the knowledge of deliberate failures to comply).

A penalty under this section may not be determined more than three years after the date on which the determination under section 62A or 62B becomes final.

For the purposes of subsection (2) and section 72B(3), a determination becomes final at the time when the period for any appeal or further appeal relating to the determination expires or, if later, when any appeal or final appeal relating to the penalty is finally determined.

Section 103(4) TMA 1970 (time limits) does not apply to a penalty under this section.

Where—the officer is liable to pay such portion of the penalty (which may be equal to or less than 100%) as the Commissioners may specify in a notice given to the officer (a “decision notice”).

Before giving the officer a decision notice, the Commissioners must—

A decision notice—

Where the Commissioners have specified a portion of the penalty in a decision notice given to the officer—

The Commissioners may not recover more than 100% of the penalty through issuing decision notices in relation to two or more persons.

A person is not liable to pay an amount by virtue of this section if the actions of the company concerned are attributable to the person by reference to conduct for which the person has been convicted of an offence. In this subsection “conduct” includes omissions.

In this section and section 72C—“company” means a body corporate or unincorporated association;“officer” means—in relation to a body corporate other than one whose affairs are managed by its members—a director, manager, secretary or other similar officer of the body, or a person purporting to act in such a capacity, or a shadow director within the meaning of section 251 of the Companies Act 2006; in relation to a limited liability partnership or other body corporate whose affairs are managed by its members—a member who exercises management functions with respect to it, or purports to do so, or in the case of a limited liability partnership, a shadow member; in relation to an unincorporated association, a person who exercises functions of management with respect to it, or purports to do so;“shadow member” means a person in accordance with whose directions or instructions the members of a limited liability partnership are accustomed to act, save that a person is not a shadow member by reason only of the fact that the members act on advice given by that person in a professional capacity.

An officer may appeal—

Notice of an appeal must—

The provisions of Part 5 of TMA 1970 relating to appeals have effect in relation to appeals under this section as they have effect in relation to an appeal against an assessment to income tax.

The Board of Inland Revenue may by regulations make such other provision for giving effect to this Chapter as they consider necessary or expedient.

The provision that may be made by regulations under subsection (1) includes provision for or in connection with modifying the application of this Chapter in circumstances where—

Regulations under this Chapter may make different provision for different cases.

Any power under this Chapter to make regulations authorising or requiring a document (whether or not of a particular description), or any records or information, to be given or requested by or to be sent or produced to the Board of Inland Revenue includes power—

The Treasury may by order designate for the purposes of this section any international organisation of which the United Kingdom is a member.

Section 59 does not apply to an organisation which is so designated.

In this Chapter “construction operations” means operations of a description specified in subsection (2), not being operations of a description specified in subsection (3); and references to construction operations—

The following operations are, subject to subsection (3), construction operations for the purposes of this Chapter—

The following operations are not construction operations for the purposes of this Chapter—

The Treasury may by order made by statutory instrument amend either or both of subsections (2) and (3) by—any description of operations.

No statutory instrument containing an order under subsection (4) shall be made unless a draft of the instrument has been laid before and approved by a resolution of the House of Commons.

In this Chapter “the Inland Revenue” means any officer of the Board of Inland Revenue.

In this Chapter “the Board of Inland Revenue” means the Commissioners of Inland Revenue (as to which, see in particular the Inland Revenue Regulation Act 1890 (c. 21)).

The Board of Inland Revenue may make regulations providing for any of the following to be done on behalf of the Board—

In this Chapter “the Commissioners” means the Commissioners for His Majesty’s Revenue and Customs.

This Chapter has effect in relation to payments made on or after the appointed day under contracts relating to construction operations.

Where a certificate issued to a person under section 561 of the Taxes Act 1988 is in force immediately before the appointed day, the person is to be treated as if, on the appointed day, the Board of Inland Revenue had registered him for gross payment.

Where a registration card issued to a person in accordance with regulations made under section 566(2A) of the Taxes Act 1988 is in force immediately before the appointed day, the person is to be treated as if, on the appointed day, the Board of Inland Revenue had registered him for payment under deduction.

Subsection (5) applies in relation to the first payment (“the relevant payment”) made after the appointed day by a person (“C”) to a sub-contractor (“SC”) under a contract relating to construction operations if—

Where this subsection applies, regulations under section 69(1) shall not require C, before making the relevant payment, to verify whether SC is registered for gross payment or for payment under deduction.

Where subsection (5) applies, C shall be entitled to assume, on making any further payments to SC under a contract relating to construction operations, that SC has not subsequently ceased to be so registered, unless notified to the contrary in accordance with regulations made under section 69(3).

In this section “the appointed day” means such day as the Treasury may by order appoint.

The Treasury may by order make such further supplemental and transitional provision and savings as they think fit in connection with the coming into effect of this Chapter.

Schedule 13 to this Act contains amendments of the Income Tax (Earnings and Pensions) Act 2003 (c. 1) relating to childcare and childcare vouchers.

The amendments have effect for the year 2005-06 and subsequent years of assessment.

Schedule 14 to this Act contains amendments of the Income Tax (Earnings and Pensions) Act 2003 relating to vans.

The amendments have effect for the year 2005-06 and subsequent years of assessment.

In the Income Tax (Earnings and Pensions) Act 2003, after section 248 insert—.

In section 236(2)(c) of that Act (mileage allowance and passenger payments: meaning of “company vehicle”), after “vans)” insert “ and section 248A (emergency vehicles) ”.

This section has effect for the year 2004-05 and subsequent years of assessment.

The Income Tax (Earnings and Pensions) Act 2003 (c. 1) is amended as follows.

In section 294 (EU travel expenses of MPs and other representatives) in subsection (1) (exemption from income tax in respect of sums paid to Members of the House of Commons and other representatives in respect of EU travel expenses) for “EU” (in both places) substitute “ European ”.

In that section, for subsections (2) to (4) substitute—.

In the heading of that section, “EU” accordingly becomes “European”.

This section has effect in relation to sums paid in respect of costs or expenses incurred on or after 6th April 2004.

Schedule 15 (which contains provisions imposing a charge to income tax by reference to benefits received in certain circumstances by a former owner of property) has effect.

That Schedule has effect for the year 2005-06 and subsequent years of assessment.

Schedule 16 to this Act provides—

This section (and that Schedule) come into force in accordance with provision made by the Treasury by order made by statutory instrument.

Each of the provisions of Part 7 of the Income Tax (Earnings and Pensions) Act 2003 (c. 1) (employment income: securities) specified in subsection (2) (exception from charges for certain company shares) is amended in accordance with subsections (3) to (5).

The provisions are—

In subsection (1) of each of those sections, after paragraph (b) (but before the word “and” where that word features at the end) insert—.

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In subsection (4) of sections 429, 443 and 446R, and in subsection (3) of section 449, for the words after “are not” substitute “ employment-related securities. ”; and accordingly omit sections 429(5), 443(5), 446R(5) and 449(4).

In Chapter 3A of that Part of that Act (securities with artificially depressed market value), after section 446I insert—.

In Chapter 3B of that Part of that Act (securities with artificially enhanced market value), after section 446N insert—.

This section applies on and after 7th May 2004.

Section 446E of the Income Tax (Earnings and Pensions) Act 2003 (c. 1) (employee securities with artificially depressed market value: charge on restricted securities) is amended as follows.

In subsection (1), after “on restricted securities),” insert—.

For subsections (3) to (6) substitute—.

This section applies on and after 7th May 2004.

But if the employment-related securities were acquired before that date, section 446E of the Income Tax (Earnings and Pensions) Act 2003 (c. 1) does not apply by virtue of the amendment made by subsection (2) of this section unless their market value would be artificially low immediately before the disposal or cancellation if the date on which the relevant period began were the later of—

The Income Tax (Earnings and Pensions) Act 2003 is amended as follows.

Omit section 421G (exclusion from Chapters 2 to 4 of Part 7 of shares awarded or acquired under approved plan or scheme).

In Chapter 2 of Part 7 (restricted securities), after section 431 insert—.

In section 489 (operation of tax advantages in connection with approved share incentive plans), after subsection (3) insert—.

In sections 505 and 506 (charge on shares ceasing to be subject to approved share incentive plan), after subsection (4) insert—.

In section 519(1) (approved SAYE option schemes: no charge in respect of exercise of option) insert at the end.

In section 524(1) (approved CSOP schemes: no charge in respect of exercise of option) insert at the end.

Section 701 (PAYE: meaning of “asset”) is amended as follows.

In subsection (2)(c)—

After subsection (3) insert—.

This section has effect on and after 18th June 2004 and (so far as it does not relate to the award or acquisition of shares) applies in relation to shares awarded or acquired before that date as well as in relation to those awarded or acquired on or after that date.

Where section 431A(1) of the Income Tax (Earnings and Pensions) Act 2003 (c. 1) (as inserted by subsection (3)) has effect (by virtue of subsection (11)) in relation to shares acquired before 18th June 2004, it applies in relation to them so as to treat an election under section 431(1) of that Act as made in relation to them on that date.

For the purposes of the application of Chapter 3B of Part 7 of that Act (securities with artificially enhanced market value) by reason of subsections (2) and (11) in relation to shares acquired before 18th June 2004, section 446O of that Act (meaning of “relevant period”) has effect as if they were acquired on that date.

Section 421F of the Income Tax (Earnings and Pensions) Act 2003 (c. 1) (exclusion from Chapters 2 to 4 of Part 7 of shares acquired under terms of offer to the public) is amended as follows.

In subsection (1), for “Chapters 2 to 4” substitute “ Chapters 2, 3 and 3C ”.

After that subsection insert—.

This section has effect on and after 18th June 2004 and applies in relation to shares acquired before that date as well as in relation to those acquired on or after that date.

For the purposes of the application of Chapter 3B of Part 7 of the Income Tax (Earnings and Pensions) Act 2003 (securities with artificially enhanced market value) by reason of subsections (2) and (4) in relation to shares acquired before that date, section 446O of that Act (meaning of “relevant period”) has effect as if they were acquired on that date.

Part 7 of the Income Tax (Earnings and Pensions) Act 2003 (employment income: securities) is amended as follows.

In section 421C(2) (meaning of “relevant linked person” for purposes of Chapters 1 to 4), for “are connected or, although not connected, are” substitute “ are or have been connected or (without being or having been connected) are or have been ”.

In section 472(2) (meaning of “relevant linked person” for purposes of Chapter 5), for “are connected or, although not connected, are” substitute “ are or have been connected or (without being or having been connected) are or have been ”.

In section 477(3)(c) (chargeable events in relation to employment-related securities options), for the words after “benefit” substitute “ in connection with the employment-related securities option (other than one within paragraph (a) or (b)). ”

This section has effect on and after 18th June 2004 and applies in relation to securities, interests and options that were employment-related securities or employment-related securities options on that date (as well as those acquired on or after that date).

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Schedule 19 (which makes amendments relating to venture capital trusts) has effect.

Schedule 5 to the Income Tax (Earnings and Pensions) Act 2003 (enterprise management incentives) is amended as follows.

In paragraph 8 (qualifying companies: introduction) after “having only qualifying subsidiaries (see paragraphs 10 and 11),” insert— “ property managing subsidiaries (see paragraphs 11A and 11B), ”.

In paragraph 10 (the qualifying subsidiaries requirement) for sub-paragraph (2) substitute—

In paragraph 11 (meaning of “qualifying subsidiary”)—

After paragraph 11 insert—.

The amendments made by this section have effect in relation to any right to acquire shares granted on or after 17th March 2004.

Section 98 of the Taxes Management Act 1970 (c. 9) (special returns etc) is amended as follows.

In subsection (4A)(b), after “(4D)” insert “ , (4DA) ”.

After subsection (4D) insert—.

In section 18 of the Taxes Act 1988 (Schedule D) after subsection (5) insert—.

In section 349 of the Taxes Act 1988 (certain payments to be made subject to deduction of income tax) after subsection (6) insert—.

Section 795 of the Taxes Act 1988 (double taxation relief: computation of income subject to foreign tax) is amended as follows.

In subsection (1) (remittance basis: grossing up) after “increased by” insert “ — (a) ” and at the end insert—.

In subsection (2)(a) (other cases: no deduction for foreign tax) after “foreign tax” insert “ or special withholding tax ”.

After subsection (4) insert—.

Section 277 of the Taxation of Chargeable Gains Act 1992 (c. 12) (which applies Chapters 1 and 2 of Part 18 of the Taxes Act 1988 in relation to capital gains tax) is amended as follows.

After subsection (1) insert—.

In section 792 of the Taxes Act 1988 (double taxation relief: interpretation of the credit code) in subsection (1), in the definition of “foreign tax”, at the end insert “ (other than special withholding tax within the meaning of Chapter 7 of Part 3 of the Finance Act 2004) ”.

In section 811 of the Taxes Act 1988 (deduction for foreign tax where no credit allowable) in subsection (2), at the end insert “ and to section 111 of the Finance Act 2004 (computation of income subject to special withholding tax) ”.

In section 278 of the Taxation of Chargeable Gains Act 1992 (c. 12) (allowance for foreign tax) in subsection (1), after “section 277” insert “ and to section 111 of the Finance Act 2004 (computation of chargeable gains subject to special withholding tax) ”.

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The Taxation of Chargeable Gains Act 1992 is amended as follows.

In section 99(2) (application of Act to unit trust schemes: definitions)—

After that section insert—.

In section 288 (interpretation)—

The amendments made by this section have effect in relation to years of assessment and accounting periods beginning on or after 1st April 2004.

After section 228 of the Capital Allowances Act 2001 (c. 2) (sale and leaseback: election) insert—.

In sections 228A to 228J of the Capital Allowances Act 2001 (c. 2) (as inserted by subsection (1) above), a reference to a provision of that Act includes a reference to an equivalent provision of the Capital Allowances Act 1990 (c. 1) (with any necessary modification).

This section applies to income tax and corporation tax chargeable in relation to periods that end on or after 17 March 2004.

Schedule 23 contains transitional provision.

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The provisions of the Taxes Act 1988 relating to offshore funds are amended in accordance with Schedule 26 to this Act.

Except as otherwise provided—

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This Part contains tax provision about pension schemes and other similar schemes.

This Chapter defines some basic concepts.

As for the rest of this Part—

In this Part “pension scheme” means a scheme or other arrangements, comprised in one or more instruments or agreements, having or capable of having effect so as to provide benefits to or in respect of persons—

A pension scheme is a registered pension scheme for the purposes of this Part at any time if it is at that time registered under Chapter 2.

In this Part “public service pension scheme” means a pension scheme—

In subsection (3) “a relevant governmental or Parliamentary person or body” means—

In this Part “occupational pension scheme” means a pension scheme established by an employer or employers and having or capable of having effect so as to provide benefits to or in respect of any or all of the employees of—(whether or not it also has or is capable of having effect so as to provide benefits to or in respect of other persons).

This Part applies in relation to certain pension schemes that are not occupational pension schemes as it applies in relation to occupational pension schemes (see section 274ZA and paragraph 1(4A) of Schedule 36).

In this Part “sponsoring employer”, in relation to an occupational pension scheme, means the employer, or any of the employers, to or in respect of any or all of whose employees the pension scheme has, or is capable of having, effect so as to provide benefits.

In this Part “overseas pension scheme” means a pension scheme (other than a registered pension scheme) which—

In this Part “recognised overseas pension scheme” means an overseas pension scheme which satisfies any requirements prescribed for the purposes of this subsection by regulations made by the Commissioners for Her Majesty's Revenue and Customs.

In this Part “member” in relation to a pension scheme, means any active member, pensioner member, deferred member or pension credit member of the pension scheme.

For the purposes of this Part a person is an active member of a pension scheme if there are presently arrangements made under the pension scheme for the accrual of benefits to or in respect of the person.

For the purposes of this Part a person is a pensioner member of a pension scheme if the person is entitled to the present payment of benefits under the pension scheme and is not an active member.

A person is a deferred member of a pension scheme if the person has accrued rights under the pension scheme and is neither an active member nor a pensioner member.

A person is a pension credit member of a pension scheme if the person has rights under the pension scheme which are attributable (directly or indirectly) to pension credits; and, if a person dies having become entitled to pension credits but without having rights attributable to them, the person is to be treated as having acquired, immediately before death, the rights by virtue of which the liability in respect of the pension credits is subsequently discharged.

In this Part “arrangement”, in relation to a member of a pension scheme, means an arrangement relating to the member under the pension scheme.

For the purposes of this Part an arrangement is a “money purchase arrangement” at any time if, at that time, all the benefits that may be provided to or in respect of the member under the arrangement are cash balance benefits , collective money purchase benefits or other money purchase benefits.

For the purposes of this Part a money purchase arrangement is a “cash balance arrangement” at any time if, at that time, all the benefits that may be provided to or in respect of the member under the arrangement are cash balance benefits.

For the purposes of this Part a money purchase arrangement is a “collective money purchase arrangement” at any time if, at that time, all the benefits that may be provided to or in respect of the member under the arrangement are collective money purchase benefits.

In this Part “money purchase benefits”, in relation to a member of a pension scheme, means benefits the rate or amount of which is calculated by reference to an amount available for the provision of benefits to or in respect of the member (whether the amount so available is calculated by reference to payments made under the pension scheme by the member or any other person in respect of the member or any other factor).

The reference in subsection (4) to an amount available for the provision of benefits to or in respect of the member includes, in relation to a collective money purchase arrangement, an amount available for the provision of benefits to or in respect of members collectively.

In this Part “cash balance benefits” means benefits

In this Part “collective money purchase benefits” means benefits that are

For the purposes of this Part an arrangement is a “defined benefits arrangement” at any time if, at that time, all the benefits that may be provided to or in respect of the member under the arrangement are defined benefits.

In this Part “defined benefits”, in relation to a member of a pension scheme, means benefits which are not money purchase benefits (but which are calculated by reference to earnings or service of the member or any other factor other than an amount available for their provision).

For the purposes of this Part an arrangement is a “hybrid arrangement” at any time if, at that time, all of the benefits that may be provided to or in respect of the member under the arrangement are, depending on the circumstances, to be of one of any two, three or four of the varieties specified in subsection (10).

Where not all of the benefits that may be provided under an arrangement to or in respect of the member are of the same one of the varieties of benefits specified in subsection (10), the arrangement is to be treated for the purposes of this Part as being two, three or four separate arrangements one of which relates to each of the two, three or four varieties of benefits that may be so provided.

The varieties of benefits mentioned in subsections (8) and (9) are—

An application may be made to the Inland Revenue for a pension scheme to be registered.

The application—

The declarations which the Inland Revenue may require to accompany an application for the registration of a pension scheme include, in particular, a declaration that the instruments or agreements by which it is constituted do not entitle any person to unauthorised payments (see section 160(5)).

Following receipt of an application for a pension scheme to be registered the Inland Revenue must decide whether or not to register the pension scheme.

The Inland Revenue’s decision must be to register the pension scheme unless it appears that—

The information falling within this subsection is any information—

The documents falling within this subsection are any documents produced to an officer of Revenue and Customs by the scheme administrator (whether under section 153A or otherwise) in connection with the application (including any declaration accompanying it).

The reference in subsection (5)(d) to the scheme administrator having failed to comply with an information notice under section 153A includes a case where the scheme administrator has concealed, destroyed or otherwise disposed of, or has arranged for the concealment, destruction or disposal of, a document in breach of paragraph 42 or 43 of Schedule 36 to the Finance Act 2008 as applied by section 153A(3).

The Inland Revenue must notify the scheme administrator of the decision on the application.

Unless the Inland Revenue’s decision is not to register the pension scheme, the notification must state the day on and after which the pension scheme will be a registered pension scheme.

An annuity contract made with an insurance company—is to be treated as having become a registered pension scheme on the day on which it is made.

Where an order has been made under section 19(4) or 21(2)(a) of the Pensions Act 2004 or Article 15(4) or 17(2)(a) of the Pensions (Northern Ireland) Order 2005 (restitution by order of court or Pensions Regulator) that property or money be transferred, or a sum be paid, towards an annuity contract made with an insurance company, the annuity contract is to be treated as having become a registered pension scheme on the day on which it is made.

Schedule 36 contains (in Part 1) provisions treating certain pension schemes in existence immediately before 6th April 2006 as registered pension schemes (and related provisions).

This section applies where an application for a pension scheme to be registered is made.

An officer of Revenue and Customs may by notice (an “information notice”) require the scheme administrator or any other person—if the officer reasonably requires the information or document in connection with the application (including any declaration accompanying it).

Paragraphs 6(2), 7, 8, 15, 16, 18 to 20, 23 to 27, 42 and 43 of Schedule 36 to the Finance Act 2008 (information notices etc) apply in relation to information notices under this section as they apply in relation to information notices under that Schedule.

Where an information notice under this section is given to a person other than the scheme administrator, an officer of Revenue and Customs must give a copy of the notice to the scheme administrator.

A person, other than the scheme administrator, who is given an information notice under this section may appeal against the notice or any requirement in the notice.

Paragraph 32 of Schedule 36 to the Finance Act 2008 (procedures for appeals against information notices) applies for the purposes of an appeal under subsection (5) as it applies for the purposes of an appeal under Part 5 of that Schedule.

This section applies where an application for a pension scheme to be registered is made.

An officer of Revenue and Customs may—if the officer reasonably requires to inspect the documents in connection with the application (including any declaration accompanying it).

In subsection (2)(a) “business premises” has the meaning given by paragraph 10(3) of Schedule 36 to the Finance Act 2008 (power to inspect business premises etc).

Paragraphs 10(2), 12, 15 and 16 of Schedule 36 to the Finance Act 2008 apply in relation to the power of inspection conferred by this section as they apply in relation to the power of inspection conferred by paragraph 10 of that Schedule.

An officer of Revenue and Customs may not inspect a document under this section if or to the extent that, by virtue of a provision of Part 4 of Schedule 36 to the Finance Act 2008 (restrictions on powers) applied by section 153A(3), an information notice under section 153A given at the time of the inspection to the occupier of the premises could not require the occupier to produce the document.

An officer of Revenue and Customs may ask the tribunal to approve an inspection under this section.

Paragraph 13(1A), (2) and (3) of Schedule 36 to the Finance Act 2008 (approval of tribunal for inspections) applies in relation to an application under subsection (6) as it applies in relation to an application under paragraph 13 of that Schedule in relation to an inspection under paragraph 10 of that Schedule.

This section applies where a person other than the scheme administrator—

The reference in subsection (1)(a) to a person who fails to comply with an information notice includes a person who conceals, destroys or otherwise disposes of, or arranges for the concealment, destruction or disposal of, a document in breach of paragraph 42 or 43 of Schedule 36 to the Finance Act 2008 as applied by section 153A(3).

Paragraphs 39(2), 40 and 44 to 49 of Schedule 36 to the Finance Act 2008 (penalties for failure to comply with information notice etc) apply in relation to the failure or obstruction as they apply in relation to a failure or obstruction mentioned in paragraph 39(1) of that Schedule.

This section applies where—

Condition A is that the inaccuracy is careless or deliberate.

An inaccuracy is careless if it is due to a failure by the scheme administrator to take reasonable care.

Condition B is that the scheme administrator knows of the inaccuracy at the time the application is made but does not inform an officer of Revenue and Customs at that time.

Condition C is that the scheme administrator—

The scheme administrator is liable to a penalty not exceeding the maximum penalty for which the scheme administrator could have been liable under paragraph 40A of Schedule 36 to the Finance Act 2008 (penalties for inaccurate information and documents) had that paragraph applied in relation to the inaccuracy.

Where the information contains more than one material inaccuracy, a penalty is payable for each inaccuracy.

Paragraphs 46 to 49 of Schedule 36 to the Finance Act 2008 (assessment of penalties etc) apply in relation to a penalty under this section as they apply in relation to a penalty under paragraph 40A of that Schedule.

This section applies where—

Paragraphs 40A and 46 to 49 of Schedule 36 to the Finance Act 2008 (penalties for inaccurate information and documents) apply in relation to the inaccuracy as they apply in relation to an inaccuracy connected with an information notice under that Schedule.

This section applies where—

The person who made the declaration is liable to a penalty not exceeding the maximum penalty for which the person could have been liable under paragraph 40A of Schedule 36 to the Finance Act 2008 (penalties for inaccurate information and documents) had that paragraph applied in relation to the falsehood.

Where the declaration contains more than one falsehood, a penalty is payable in relation to each falsehood.

Paragraphs 46 to 49 of Schedule 36 to the Finance Act 2008 (assessment of penalties etc) apply in relation to a penalty under this section as they apply in relation to a penalty under paragraph 40A of that Schedule.

An application to register a pension scheme may be made only if the pension scheme—

But subsection (1) does not apply to a public service pension scheme.

Subsection (1) is to be construed in accordance with section 22 of FISMA 2000, any relevant order under that section and Schedule 2 to that Act.

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The Treasury may by order amend this section ....

This section applies where, on an application for a pension scheme to be registered, the Inland Revenue’s decision is not to register the pension scheme.

The scheme administrator may appeal against the decision.

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An appeal under this section against a decision must be brought within the period of 30 days beginning with the day on which the scheme administrator was notified of the decision.

On an appeal under this section that is notified to the tribunal, the tribunal must consider whether the pension scheme ought to have been registered by the Inland Revenue.

If the tribunal decides that the pension scheme ought not to have been registered by the Inland Revenue, the tribunal must dismiss the appeal.

If the tribunal decides that the pension scheme ought to have been registered by the Inland Revenue, the pension scheme is to be treated as having been registered on such date as the tribunal determines (but subject to any further appeal ...).

This section applies where—

The scheme administrator may appeal to the tribunal as if, at the end of that period of 6 months, the scheme administrator had been notified under section 153(6) of a decision not to register the scheme; and section 156(5) to (8) applies accordingly.

The Inland Revenue may withdraw the registration of a pension scheme.

If the Inland Revenue withdraws the registration of a pension scheme the Inland Revenue must notify the scheme administrator.

If there is no-one who is the scheme administrator, the Inland Revenue must instead notify any person or persons—

The notification must state the date on and after which the pension scheme will not be a registered pension scheme.

The registration of a pension scheme may be withdrawn under section 157 only if it appears to the Inland Revenue—

The amount of the scheme chargeable payments made by a pension scheme during any period of 12 months exceeds the de-registration threshold if the scheme chargeable payments percentage is 25% or more.

The scheme chargeable payments percentage is—

The percentage of the pension fund used up on the occasion of a scheme chargeable payment is—SCP AA×100 where—SCP is the amount of the scheme chargeable payment, and AA is an amount equal to the aggregate of the amount of the sums and the market value of the assets held for the purposes of the pension scheme at the time when the scheme chargeable payment is made.

A failure by a scheme administrator to provide information required to be provided to the Inland Revenue by or under this Part or Part 1 of Schedule 36 to the Finance Act 2008 is significant if—

Subsections (7) to (10) apply for the purposes of subsection (1)(db).

Condition A is that the inaccuracy is careless or deliberate.

An inaccuracy is careless if it is due to a failure by the scheme administrator to take reasonable care.

Condition B is that the scheme administrator knows of the inaccuracy at the time the document is produced to an officer of Revenue and Customs but does not inform such an officer at that time.

Condition C is that the scheme administrator—

This section applies where the Inland Revenue decides to withdraw the registration of a pension scheme under section 157.

The scheme administrator, or any person notified under that section of the withdrawal of registration, may appeal against the decision.

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An appeal under this section against a decision must be brought within the period of 30 days beginning with the day on which the appellant was notified of the decision.

On an appeal that is notified to the tribunal, the tribunal must consider whether the registration of the pension scheme ought to have been withdrawn.

If the tribunal decides that the registration of the pension scheme ought to have been withdrawn, the tribunal must dismiss the appeal.

If the tribunal decides that the registration of the pension scheme ought not to have been withdrawn, the pension scheme is to be treated as having remained a registered pension scheme (but subject to any further appeal ...).

An officer of Revenue and Customs may by notice (an “information notice”) require the scheme administrator of a registered pension scheme or any other person—if the officer reasonably requires the information or document for the purpose of considering whether the person who is, or any of the persons who are, the scheme administrator is a fit and proper person to be the scheme administrator or one of those persons (as the case may be).

Paragraphs 6(2), 7, 8, 15, 16, 18 to 20, 23 to 27, 42 and 43 of Schedule 36 to the Finance Act 2008 (information notices etc) apply in relation to information notices under this section as they apply in relation to information notices under that Schedule.

Where an information notice under this section is given to a person other than the scheme administrator, an officer of Revenue and Customs must give a copy of the notice to the scheme administrator.

A person who is given an information notice under this section may appeal against the notice or any requirement in the notice.

Paragraph 32 of Schedule 36 to the Finance Act 2008 (procedures for appeals against information notices) applies for the purposes of an appeal under subsection (4) as it applies for the purposes of an appeal under Part 5 of that Schedule.

An officer of Revenue and Customs may—if the officer reasonably requires to inspect the documents for the purpose of considering whether the person who is, or any of the persons who are, the scheme administrator is a fit and proper person to be the scheme administrator or one of those persons (as the case may be).

In subsection (1)(a) “business premises” has the meaning given by paragraph 10(3) of Schedule 36 to the Finance Act 2008 (power to inspect business premises etc).

Paragraphs 10(2), 12, 15 and 16 of Schedule 36 to the Finance Act 2008 apply in relation to the power of inspection conferred by this section as they apply in relation to the power of inspection conferred by paragraph 10 of that Schedule.

An officer of Revenue and Customs may not inspect a document under this section if or to the extent that, by virtue of a provision of Part 4 of Schedule 36 to the Finance Act 2008 (restrictions on powers) applied by section 159A(2), an information notice under section 159A given at the time of the inspection to the occupier of the premises could not require the occupier to produce the document.

An officer of Revenue and Customs may ask the tribunal to approve an inspection under this section.

Paragraph 13(1A), (2) and (3) of Schedule 36 to the Finance Act 2008 (approval of tribunal for inspections) applies in relation to an application under subsection (5) as it applies in relation to an application under paragraph 13 of that Schedule in relation to an inspection under paragraph 10 of that Schedule.

This section applies where a person—

The reference in subsection (1)(a) to a person who fails to comply with an information notice includes a person who conceals, destroys or otherwise disposes of, or arranges for the concealment, destruction or disposal of, a document in breach of paragraph 42 or 43 of Schedule 36 to the Finance Act 2008 as applied by section 159A(2).

Paragraphs 39(2), 40 and 44 to 49 of Schedule 36 to the Finance Act 2008 (penalties for failure to comply with information notice etc) apply in relation to the failure or obstruction as they apply in relation to a failure or obstruction mentioned in paragraph 39(1) of that Schedule.

This section applies where—

Paragraphs 40A and 46 to 49 of Schedule 36 to the Finance Act 2008 (penalties for inaccurate information and documents) apply in relation to the inaccuracy as they apply in relation to an inaccuracy connected with an information notice under that Schedule.

The only payments which a registered pension scheme is authorised to make to or in respect of a person who is or has been a member of the pension scheme are those specified in section 164.

In this Part “unauthorised member payment” means—

The only payments which a registered pension scheme that is an occupational pension scheme is authorised to make to or in respect of a person who is or has been a sponsoring employer are those specified in section 175.

In this Part “unauthorised employer payment” means—

If an unauthorised member payment or unauthorised employer payment made to or in respect of a person would have been greater but for a reduction made in respect of the whole, or any proportion, of the amount which the scheme administrator considers may be the amount of the liability to the scheme sanction charge in respect of it, it is to be regarded for the purposes of this Part as increased by the amount of the reduction.

But if the amount, or that proportion of the amount, of that liability is in fact less than the amount of the reduction, a subsequent payment of an amount not exceeding the difference between that amount and the amount of the reduction made—is not to be regarded for the purposes of this Part as an unauthorised member payment or unauthorised employer payment.

In this Part “unauthorised payment” means—

As well as section 157 (de-registration), the following provisions—specify consequences of making unauthorised payments.

Sections 182 to 185 contain provision about amounts that a registered pension scheme is not authorised to borrow.

Sections 185A to 185I contain provision about the receipt of income and gains from taxable property.

As well as section 157, sections 239 and 242 specify consequences of unauthorised borrowing and the receipt of income and gains from taxable property.

Schedule 36 contains (in Parts 3 and 4) transitional provision about unauthorised payments.

This section applies for the interpretation of this Chapter.

“Payment” includes a transfer of assets and any other transfer of money’s worth.

Subsection (4) applies to a payment made or benefit provided under or in connection with an investment (including an insurance contract or annuity) acquired using sums or assets held for the purposes of a registered pension scheme.

The payment or benefit is to be treated as made or provided from sums or assets held for the purposes of the pension scheme, even if the pension scheme has been wound up since the investment was acquired.

A payment made by a registered pension scheme to or in respect of a person who—is to be treated as made in respect of the person who is or has been a member or sponsoring employer.

Any asset held by a person connected with a person who is or has been a member or sponsoring employer (or who was connected with such a person at the date of the person's death) is to be treated as held for the benefit of the person who is or has been a member or sponsoring employer.

Any increase in the value of an asset held by, or reduction in the liability of, a person connected with a person who is or has been a member or sponsoring employer (or who was connected with such a person at the date of the person's death) is to be treated as an increase or reduction for the benefit of the person who is or has been a member or sponsoring employer.

For the purposes of this section whether a person is connected with another person is determined in accordance with section 993 of ITA 2007.

This section applies for the interpretation of this Chapter.

“Loan” does not include the purchase of or subscription to debentures, debenture stock, loan stock, bonds, certificates of deposit or other instruments creating or acknowledging indebtedness which are—

A guarantee of a loan made to or in respect of a person who is or has been a member or sponsoring employer of a registered pension scheme , or to or in respect of a person who is connected with a person who is or has been a member or sponsoring employer of a registered pension scheme but is not such a person, is to be treated as a loan to or in respect of the person who is or has been a member or sponsoring employer of an amount equal to the amount guaranteed.

If a person who is or has been a member or sponsoring employer of a registered pension scheme or a person who is connected with a person who is or has been a member or sponsoring employer of a registered pension scheme but is not such a person—the debt is to be treated as a loan made by the pension scheme to the person who is or has been a member or sponsoring employer on that date.

The relevant date is the date by which a person at arm’s length from the pension scheme might be expected to be required to pay the debt.

For the purposes of this section whether a person is connected with another person is determined in accordance with section 993 of ITA 2007.

This section applies for the interpretation of this Chapter.

Borrowing is borrowing by a registered pension scheme if the amount borrowed is to be repaid from sums or assets held for the purposes of the pension scheme.

A liability is a liability of a registered pension scheme if the liability is to be met from sums or assets held for the purposes of the pension scheme.

Borrowing by a registered pension scheme is in respect of an arrangement if it is properly attributable to the arrangement in accordance with the provisions of the pension scheme and any just and reasonable apportionment.

The only payments a registered pension scheme is authorised to make to or in respect of a person who is or has been a member of the pension scheme are—

Regulations under subsection (1)(f) may—and “prescribed” means prescribed in regulations under subsection (1)(f).

The Commissioners for Her Majesty's Revenue and Customs may by regulations make provision—

In subsection (3)—“authorised payment” means a payment specified in subsection (1), and“prescribed” means prescribed in regulations under subsection (3).

These are the rules relating to the payment of pensions by a registered pension scheme to a member of the pension scheme (“the pension rules”). Pension rule 1 No payment of pension may be made before the day on which the member reaches normal minimum pension age, unless the ill-health condition was met immediately before the member became entitled to a pension under the pension scheme. Pension rule 2 If the member dies before the end of the period of ten years beginning with the day on which the member became entitled to a scheme pension or an annuity, and if in the case of an annuity that day was before 6 April 2015, payment of the scheme pension or annuity may continue to be made (to any person) until the end of that period. If the member becomes entitled to an annuity on or after 6 April 2015 and the annuity is payable until the later of the member's death and the end of a term certain, payment of the annuity may continue to be made (to any person) until the end of that term. Except as provided by the preceding provisions of this rule, no payment of the member’s pension may be made after the member’s death. Pension rule 3 No payment of pension other than a scheme pension may be made in respect of a defined benefits arrangement or a collective money purchase arrangement. Pension rule 4 No payment of pension other than—a scheme pension, a lifetime annuity, or drawdown pension may be made in respect of a money purchase arrangement that is not a collective money purchase arrangement; but a scheme pension may only be paid if the member had an opportunity to select a lifetime annuity instead. Pension rule 5 The total amount of drawdown pension paid in each drawdown pension year from, or under a short-term annuity purchased using sums or assets out of, the member's drawdown pension fund in respect of a money purchase arrangement must not exceed 150%of the basis amount for the drawdown pension .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

In this Part “pension”, in relation to a registered pension scheme, includes—

For the purposes of this Part, a person becomes entitled to a pension under a registered pension scheme—and, for this purpose, the abatement of a scheme pension under a public service pension scheme is not to be taken to affect the right to receive it.

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Part 1 of Schedule 28 gives the meaning of expressions used in the pension rules.

This is the rule relating to the payment of lump sums by a registered pension scheme to a member of the pension scheme (“the lump sum rule”). Lump sum rule No lump sum may be paid other than—

For the purposes of this Part, a person becomes entitled to a lump sum under a registered pension scheme—

Part 1 of Schedule 29 gives the meaning of expressions used in the lump sum rule.

Schedule 36 contains (in Part 3) transitional provisions about lump sums.

The Commissioners for Her Majesty's Revenue and Customs may by regulations amend Part 1 of Schedule 29, or Part 3 of Schedule 36, in connection with cases involving a lump sum within subsection (6).

A lump sum is within this subsection if—

The provision that may be made under subsection (5) includes provision altering the effect of amendments made by the Finance Act 2014.

These are the rules relating to the payment of pension death benefits by a registered pension scheme in respect of a member of the pension scheme (“the pension death benefit rules”). Pension death benefit rule 1 No payment of pension death benefit may be made otherwise than to a dependant, or nominee or successor, of the member. Pension death benefit rule 2 No payment of pension death benefit other than a dependants' scheme pension may be made in respect of a defined benefits arrangement or a collective money purchase arrangement. Pension death benefit rule 3 No payment of pension death benefit other than—a dependants' scheme pension, a dependants' annuity, or dependants’ drawdown pension, may be made to a dependant in respect of a money purchase arrangement that is not a collective money purchase arrangement; but a dependants' scheme pension may only be paid if the member or dependant had an opportunity to select a dependants' annuity instead. Pension death benefit rule 3A No payment of pension death benefit, other than a nominees' annuity in respect of a money purchase arrangement or nominees' drawdown pension in respect of a money purchase arrangement, may be made to a nominee of the member. Pension death benefit rule 3B No payment of pension death benefit, other than a successors' annuity in respect of a money purchase arrangement or successors' drawdown pension in respect of a money purchase arrangement, may be made to a successor of the member. Pension death benefit rule 4 The total amount of dependants’ drawdown pension paid to a dependant in each drawdown pension year from, or under a dependants' short-term annuity purchased using sums or assets out of, the dependant's drawdown pension fund in respect of a money purchase arrangement must not exceed 150%of the basis amount for the drawdown pension year..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

For the purposes of this Part, a person becomes entitled to dependants' income withdrawal, nominees' income withdrawal or successors' income withdrawal under a registered pension scheme whenever sums or assets held for the purposes of an arrangement under the pension scheme are designated as available for the payment of (as the case may be) dependants' drawdown pension, nominees' drawdown pension or successors' drawdown pension.

In this part “pension death benefit” means a pension payable on the death of the member (other than a member’s pension payable after the member’s death under pension rule 2: see section 165), or a pension payable in respect of the member on the subsequent death of a dependant, nominee or successor of the member.

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Part 2 of Schedule 28 gives the meaning of expressions used in the pension death benefit rules.

This is the rule relating to the payment of lump sum death benefits by a registered pension scheme in respect of a member of the pension scheme (“the lump sum death benefit rule”). Lump sum death benefit rule No lump sum death benefit may be paid other than—

In this Part “lump sum death benefit” means a lump sum payable on the death of the member , or a lump sum payable in respect of the member on the subsequent death of a dependant, nominee or successor of the member.

Part 2 of Schedule 29 gives the meaning of expressions used in the lump sum death benefit rule.

Schedule 36 contains (in Part 3) transitional provision about lump sum death benefits.

A “recognised transfer” is a transfer of sums or assets held for the purposes of, or representing accrued rights under, a registered pension scheme so as to become held for the purposes of, or to represent rights under—in connection with a member of that pension scheme.

A transfer of sums or assets held for the purposes of, or representing accrued rights under, a registered pension scheme to an insurance company is to be treated as a recognised transfer if the sums or assets had been applied by the pension scheme towards the provision of a scheme pension or a dependants' scheme pension (but subject to regulations under subsections (1B) and (1C)).

The Board of Inland Revenue may by regulations provide that, where any of the sums or assets transferred represent rights in respect of a scheme pension to which a member of a registered pension scheme has become entitled (“the original scheme pension”)—

The Board of Inland Revenue may by regulations provide that, where any of the sums or assets transferred represent rights in respect of a dependants' scheme pension to which a dependant of a member of a registered pension scheme has become entitled in respect of the member (“the original dependants' scheme pension”)—

The Board of Inland Revenue may by regulations provide that, where any of the sums or assets transferred represent—under an arrangement (“the old arrangement”), the transfer is not a recognised transfer unless all of those sums and assets become held under an arrangement under which no other sums or assets are held (“the new arrangement”).

If regulations so provide they may make in relation to cases in which the sums and assets become so held provision as to the treatment for the purposes of any provision of this Part of—including provision for treating the sums and assets transferred as remaining, to such extent as is prescribed by the regulations and for such of the purposes of this Part as are so prescribed, sums and assets held under the old arrangement.

The Commissioners for His Majesty’s Revenue and Customs may by regulations make provision as to the treatment for the purposes of any provision of this Part of—

The provision that may be made under subsection (1F) includes provision for treating sums or assets within paragraph (a) of that subsection as remaining, to such extent as is prescribed by the regulations and for such of the purposes of this Part as are so prescribed, held for the purposes of the collective money purchase arrangement under the pension scheme from which they were transferred.

For the purposes of this Part a recognised overseas pension scheme is a qualifying recognised overseas pension scheme if—

Regulations may make provision as to—

In this Part “scheme manager”, in relation to a pension scheme, means the person or persons administering, or responsible for the management of, the pension scheme.

Regulations may require the scheme manager of a QROPS or former QROPS to—

Regulations may require a member, or former member, of a QROPS or former QROPS to give information of a prescribed description to the scheme manager of a QROPS or former QROPS.

Regulations under subsection (4) or (4ZA) may make provision as to—

The regulations may apply any provision of Part 7 of Schedule 36 to FA 2008 (penalties), with or without modifications, in relation to requirements imposed under the regulations on a former QROPS.

Provision under subsection (2A)(b) or (4A)(a) may, in particular, provide for use of a way or form specified by the Commissioners.

A recognised overseas pension scheme is excluded from being a qualifying recognised overseas pension scheme by this subsection if the Commissioners have decided that—and has notified the person or persons appearing to be the scheme manager of that decision (but subject to subsection (7) and section 170).

A failure to comply with a requirement is significant if—

The Inland Revenue—

Regulations may, in a case where—provide that the new pension is to be treated, to such extent as is prescribed and for such of the purposes of this Part as are prescribed, as if it were the original pension.

For the purposes of subsection (7A), a “relevant overseas transfer” is a transfer of sums or assets held for the purposes of, or representing accrued rights under, a relevant overseas scheme (“the transferring scheme”) so as to become held for the purposes of, or to represent rights under—in connection with a member of that pension scheme.

In subsection (7B) “relevant overseas scheme” means—

Regulations under subsection (7A) may—

In subsections (4) to (6), (7A) to (7D) and this subsection—“the Commissioners” means the Commissioners for Her Majesty's Revenue and Customs;“prescribed” means prescribed by regulations;“QROPS” means a qualifying recognised overseas pension scheme, and “former QROPS” means a scheme that has at any time been a QROPS;“regulations” means regulations made by the Commissioners;“relevant requirement” means—a requirement imposed by regulations under subsection (4), or a requirement imposed by virtue of Part 1 of Schedule 36 to FA 2008 (powers to obtain information and documents), or a requirement to pay overseas transfer charge, or interest on overseas transfer charge, imposed by regulations under section 244L(2) or by an assessment under such regulations.

This section applies where a recognised overseas pension scheme is excluded from being a qualifying recognised overseas pension scheme by a decision of the Inland Revenue under section 169(5).

The scheme manager may appeal against the decision.

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An appeal under this section against a decision must be brought within the period of 30 days beginning with the day on which the notification of the decision was given.

On an appeal that is notified to the tribunal, the tribunal must consider whether the recognised overseas pension scheme ought to have been excluded from being a qualifying recognised overseas pension scheme.

If the tribunal decides that the recognised overseas pension scheme ought to have been excluded from being a qualifying recognised overseas pension scheme, the tribunal must dismiss the appeal.

If the tribunal decides that the recognised overseas pension scheme ought not to have been excluded from being a qualifying recognised overseas pension scheme, the recognised overseas pension scheme is to be treated as having remained a qualifying recognised overseas pension scheme (but subject to any further appeal ...).

A “scheme administration member payment” is a payment by a registered pension scheme to or in respect of a person who is or has been a member of the pension scheme which is made for the purposes of the administration or management of the pension scheme.

But if a payment falling within subsection (1) exceeds the amount which might be expected to be paid to a person who was at arm’s length, the excess is not a scheme administration member payment.

Scheme administration member payments include in particular—

A loan to or in respect of a person who is or has been a member of the pension scheme is not a scheme administration member payment.

Regulations made by the Board of Inland Revenue may provide that payments of a description specified in the regulations are, or are not, scheme administration member payments.

Subsection (2) applies if a member of a registered pension scheme (or the member’s personal representatives) assigns or agrees to assign

Unless the assignment or agreement is pursuant to a pension sharing order or provision, the pension scheme is to be treated as making an unauthorised payment to the member (or to the member’s personal representatives in respect of the member).

Subsection (4) applies if a person (or a person’s personal representatives) assigns or agrees to assign

Unless the assignment or agreement is pursuant to a pension sharing order or provision, the pension scheme is to be treated as making an unauthorised payment to the person (or the person’s personal representatives) in respect of the member.

The amount of the unauthorised payment is the greater of—

Where a pension scheme is treated by this section as having made an unauthorised payment in relation to an assignment (or an agreement to assign), payments by the pension scheme of the benefit or right assigned (or agreed to be assigned) are not unauthorised payments.

References in this section to a benefit to which the member or a person has an entitlement under the pension scheme includes rights to payments under—

An excluded pension is so much of any pension which under pension rule 2 may continue to be paid after the member's death as may be so paid.

“Assignment” includes assignation and related expressions are to be read accordingly.

Subsection (2) applies if a member of a registered pension scheme surrenders or agrees to surrender—

The pension scheme is to be treated as making an unauthorised payment to the member.

Subsection (4) applies if a person surrenders or agrees to surrender—

The pension scheme is to be treated as making an unauthorised payment to the person in respect of the member.

Subsections (2) and (4) do not apply to—

Subsection (5)(b) applies only if the entitlement is held (or is to be held) by the dependant, or nominee, under an arrangement under the pension scheme relating to the member or dependant or nominee.

Subsection (5)(ba) applies only if the entitlement is held (or is to be held) by the successor under an arrangement under the pension scheme relating to the beneficiary or successor.

Regulations under subsection (5)(f) may include provision having effect in relation to times before they are made.

Subsections (2) and (4) do not apply to the surrender of a benefit to which the member (or a dependant or nominee or successor of the member) has a prospective entitlement, or to which the person has a prospective entitlement in respect of a member, under an arrangement that is a defined benefits arrangement or cash balance arrangement unless—

The amount of the unauthorised payment is the consideration that might be expected to be received if what is surrendered were assigned by a transaction between parties at arm's length and any power to reduce the entitlement to the benefit or right did not exist.

In this section “surrender”, in relation to any benefit or right of a member (or dependant of a member) of a pension scheme or other person, includes any schemes, arrangements or understandings of any kind (whether or not legally enforceable) the main purpose, or one of the main purposes, of which is to reduce the member's (or dependant's), or person's, entitlement to the benefit or right.

References in this section to a benefit to which the member or a person has an entitlement under the pension scheme includes rights to payments under—

For the purposes of this section an excluded pension is so much of any pension which under pension rule 2 may continue to be paid after the member's death as may be so paid.

For the purposes of this section a surrender relating to an arrangement under the pension scheme (“the old arrangement”) is made as part of a retirement-benefit activities compliance exercise if—

For the purposes of this section whether a person is connected with another person is determined in accordance with section 993 of ITA 2007.

This section applies if—

A member of a registered pension scheme is a relevant member if, immediately before his death, any of his rights under the pension scheme are—

There is at any time an increase in the pension rights of the other member of the pension scheme which is attributable to the death if—in consequence of the death (ignoring for the purposes of paragraphs (a) and (b) any power to reduce the entitlement to the benefits).

The pension scheme is to be treated as making an unauthorised payment to the other member (or to the other member's personal representatives) of an amount equal to the excess (but subject to subsection(5))).

The amount which would (apart from this subsection) constitute the unauthorised payment is to be reduced by so much of the excess as arises—

Regulations under subsection (5)(c) may include provision having effect in relation to times before they are made.

This section does not apply if—

This section does not apply if—

References in this section to a benefit to which the member or a person has an entitlement under the pension scheme includes rights to payments under—

This section does not apply if the increase in the pension rights of the other member is brought about by an assignment (or agreement to assign) within section 172.

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For the purposes of this section whether a person is connected with another person is determined in accordance with section 993 of ITA 2007.

This section applies if—

An arrangement is a relevant arrangement if it is—

“The permitted maximum” is—

But if the member is a also a member of one or more other registered pension schemes, the permitted maximum in relation to each of the registered pension schemes of which he is a member is—PM N where—PM is the amount arrived at under subsection (3), and N is the number of registered pension schemes of which he is a member.

The pension scheme is to be treated as making an unauthorised payment to the member (or to the member's personal representatives).

The amount of the unauthorised payment is the amount by which the amount of the allocated contributions exceeds the permitted maximum.

For the purposes of this section whether a person is connected with another person is determined in accordance with section 993 of ITA 2007.

This section applies where, at any time during any pension input period in respect of a relevant arrangement relating to a member of an occupational pension scheme that is a registered pension scheme, the member and—are connected persons.

If—the pension scheme is to be treated as making an unauthorised payment to the member (or to the member's personal representatives) of an amount equal to the excess.

A relevant arrangement is an arrangement under the pension scheme that is—

The pension input amount for a pension input period in respect of the relevant arrangement is to be determined in accordance with—treating references in those sections to the individual as to the member and treating section 237 as if the references to input amount B were omitted.

The notional unconnected person input amount for the pension input period in respect of the relevant arrangement is what the pension input amount, as so determined, would have been if the member were connected with—at no time during the pension input period.

For the purposes of this section whether a person is connected with another person is determined in accordance with section 993 of ITA 2007.

A registered pension scheme is to be treated as having made an unauthorised payment to a person who is or has been a member of the pension scheme if an asset held for the purposes of the pension scheme is used to provide a benefit (other than a payment) to—

If the benefit is received by reason of an employment which is not lower-paid employment as a minister of religion, subsection (1) does not apply.

If the benefit is received by reason of an employment which is lower-paid employment as a minister of religion, subsection (1) only applies if—

A registered pension scheme is to be treated as having made an unauthorised payment in respect of a person who is or has been a member of the pension scheme if, after the person's death, an asset held for the purposes of the pension scheme is used to provide a benefit (other than a payment) to a person who, at the date of the person's death, was a member of the person's family or household.

The person who receives the benefit is to be treated as having received the unauthorised payment.

If the benefit is received by reason of an employment which is not lower-paid employment as a minister of religion, subsections (4) and (5) do not apply.

If the benefit is received by reason of an employment which is lower-paid employment as a minister of religion, subsections (4) and (5) only apply if—

This section does not apply if—

The amount of an unauthorised payment treated as having been made by this section—

For the purposes of subsection (8)—

In this section—

Section 721 of ITEPA 2003 applies for the purposes of determining the members of a person’s family or household.

A registered pension scheme is to be treated as having made an unauthorised payment to a person who is or has been a member of the pension scheme if, in connection with any of the events mentioned in subsection (3) or a change in the value of a currency—

But if the event or the change in the value of the currency occurs after the person's death—

The events are—in a way which differs from that which might be expected if the parties to the transaction were at arm’s length.

The amount of the unauthorised payment is the amount by which the reduction in value of the asset held for the purposes of the pension scheme, or the increase in the liability of the pension scheme, exceeds that which might be expected if the parties to the transaction were at arm’s length.

Regulations made by the Board of Inland Revenue may make provision as to how the excess is to be calculated in relation to events of a description specified in the regulations (including provision as to the times at which the asset or liability is to be valued).

An investment-regulated pension scheme is to be treated as making an unauthorised payment to a member of the pension scheme if—

An investment-regulated pension scheme is to be treated as making an unauthorised payment to a member of the pension scheme if—

An investment-regulated pension scheme is to be treated as making an unauthorised payment to a member of the pension scheme if—

Schedule 29A makes provision supplementing this section; and in that Schedule—

A loan made to or in respect of a person who is or has been a sponsoring employer is an authorised employer loan if—

The repayment terms comply with this subsection if—