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Pension schemes newsletter - April 2023 Published: 26 April 2023 Emailed: 26 April 2023
HM Revenue and Customs (HMRC) has published the ‘ Pension schemes newsletter 149 — April 2023 ’. The newsletter is published by HMRC’s pension schemes services to update stakeholders on the latest news for pension schemes.
Here are some of the key highlights:
• lifetime allowance (LA) – from 6 April 2023, schemes may continue to use the current process for taxation of the defined benefits (DB) lump sum death benefits or uncrystallised funds lump sum death benefit. Based on information provided by legal personal representatives, HMRC will raise marginal rate taxation (as opposed to a LA charge) on the applicable portion of these payments. This may mean that HMRC will be approaching affected beneficiaries following the end of the tax year in line with the existing process but with marginal rate charge instead of LA charge This process will continue until HMRC develop a longer-term position for the full abolition of the LA from 6 April 2024. These changes were made in light of concerns raised by representatives across the industry around the new process for the taxation of death benefits announced in the lifetime allowance guidance newsletter on 27 March 2023
• annual allowance calculator – the calculator for the tax year 2023/24 is currently unavailable and due to be updated by Summer 2023
relief at source (RAS) - the deadline for submitting the 2022/23 annual return of information is 5 July 2023 - HMRC no longer require scheme administrators who operate RAS, to send in a registered pension schemes annual statistical return (APSS107). This will apply for tax years ending 5 April 2023 onwards
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• pension scheme return - from April 2024, if employers need to submit a new return or amend a previously submitted return for the tax year 2022/23 or earlier, they can continue to do this on the pension schemes online service. However, pension scheme returns can no longer be submitted using third party software. From 6 April 2024, some of the questions on the pension scheme return will change and more detail will be required on transactions made by the pension scheme and members.
Find out more detailed information on pension scheme administration here.
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Benefits Expert: DC Pension roundtable report available Published: 4 May 2023 Emailed: 10 May 2023
After a decade of automatic enrolment (AE), defined contributions (DC) pension schemes are becoming the norm for workplace pensions outside of the public sector. There is still space for DC schemes to improve ad adapt to changing labour markets.
Attended by industry leaders, including the CIPP’s policy lead, Samantha O’Sullivan, the roundtable discussed many points including:
• the transformation of the DC pensions landscape o performance concerns o governance o switching challenges o consultations o informed decisions o cost factors • the challenges of performance and education
cipp.org.uk
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