Policy News Journal - 2014-15

The latest stakeholder update from the Pensions Regulator gives a short overview of their work over the last four months.

The update covers a range of subject areas. Unsurprisingly, one strong theme is enforcement activity with:

 Reports on recent action against “pension liberation” schemes, and  Warnings of potential action against more employers failing to meet their auto enrolment deadlines.

HMRC Pension Schemes Newsletter 66

18 December 2014

The December 2014 issue of the HMRC newsletter for pension schemes is now published. It includes a useful round-up of all the current round of changes to the pension landscape.

The newsletter provides updates and background information on a range of pensions topics, with most content unsurprisingly being devoted to the new flexibilities announced over the past few months.

Pension flexibility: HMRC developments

22 December 2014

HMRC have issued what they hope will be a helpful progress report on the implementation of the new flexibility rules, including the issuing of draft regulations and clarification of Inheritance Tax implications.

The HMRC report covers:

 The Taxation of Pensions Act 2014 (TOPA14) - The Bill received Royal Assent on 17 December and will have effect from 6 April 2015. As this was a money bill the Lords were only able to debate the Bill but could not amend it, so the wording in the Act is the same as the Bill that left the House of Commons on 3 December

 Regulations to support TOPA14 - HMRC have now issued three draft sets of regulations for comment in connection with TOPA14. These relate to:

o The Provision of Information (covering reporting requirements where new BCE5C occurs , and transfers of tax free beneficiaries drawdown funds) o Overseas Schemes (the elements that we could not include in TOPA14) o Flexible and other annuity transfers (using the new vires introduced into FA04 by TOPA14).

 Autumn Statement announcement - HMRC hope to publish early in the New Year draft legislation for comment for the changes in connection with annuities that were announced at Autumn Statement

HMRC have also had a number of questions about whether the changes in TOPA14 have any IHT impact. They say that hopefully the following clarifies the position.

 For inheritance tax purposes, payments made at the discretion of the pension provider are not included in the deceased’s estate because there is no absolute control over the payment to be made. Where a payment is not discretionary and is

CIPP Policy News Journal

08/04/2015, Page 411 of 521

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