Policy News Journal - 2013-14

HMRC has published guidance on the taxation of unauthorised transfers to schemes included on the Qualifying Recognised Overseas Pension Schemes (QROPS) list.

This guidance concerns transfers of sums or assets which took place before 24 September 2008 from a registered pension scheme to a scheme that was included within the list relating to QROPS.

The guidance will operate in relation to the small number of transfers where the scheme was not a QROPS when the transfer took place.

The guidance is related to the case of R (Gibson) v Commissioner for HM Revenue and Customs where the court found that HMRC is to no longer pursue unauthorised payment tax charges over transfers to QROPS made before September 2008.

Defined benefit consultation: setting a balanced approach

4 December 2013

Striking a balance between sponsoring employers’ pension funding obligations and their ability to invest in sustainable business growth is at the heart of a consultation on defined benefit (DB) regulation. The consultation sets out how The Pensions Regulator intends to balance its new objective to minimise the impact on employers’ sustainable growth, with its existing DB funding objectives. The new objective is contained in the Pensions Bill 2013, currently before Parliament. The content of the consultation also reflects how the regulator’s approach to DB funding has evolved over the last eight years in light of its experience, and that of the pensions sector, in managing the risks in DB schemes.

Go to the regulating defined benefit pension schemes consultation .

The consultation includes:

 A draft funding code of practice that provides practical guidance to help pension trustees to meet the requirements of scheme funding legislation.  A draft regulatory strategy setting out at a high-level the regulator’s risk-based approach to tackling issues in DB pension schemes.  A draft funding policy describing in more detail the regulator’s intended approach to regulating DB funding issues.

Read the TPR press release

Scottish rate Income Tax - update on relief at source

17 December 2013

HMRC has published an update for pension scheme administrators on the Scottish rate of Income Tax for relief at source on contributions to registered pension schemes by Scottish taxpayers. Scottish rate of Income Tax The Scotland Act 2012 introduced the Scottish rate of Income Tax (SRIT), which is expected to be implemented in April 2016. The rate paid by Scottish taxpayers will be calculated by reducing the basic, higher and additional rates of Income Tax by 10 pence in the pound and adding a new Scottish rate set by the Scottish Parliament. A SRIT of 10% would mean no change from the UK rates. However, a SRIT of 9% would mean the rates paid by Scottish

CIPP Policy News Journal

16/04/2014, Page 440 of 519

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