INCOME TAX Citation, commencement and interpretation 1 1 These Regulations may be cited as the Registered Pension Schemes (Restriction of Employers' Relief) Regulations 2005 and shall come into force on 6th April 2006. 2 In these Regulations— a “arrangement” has the meaning in section 152(1); b “period of account” has the meaning in section 832(1) of the Income and Corporation Taxes Act 1988 ; and c references to a section (without more) are to that section of the Finance Act 2004. Scope of these Regulations 2 1 These Regulations apply in circumstances where— a subsection (2) or (3) of section 196A applies (or both do); and b the condition in paragraph (2) is not satisfied. 2 The condition in this paragraph is that, in such of those subsections as apply— a the employer-financed retirement benefits scheme referred to is a recognised overseas pension scheme within the meaning in section 150(8); and b the individual referred to would be a relevant migrant member of that scheme by virtue of paragraph 4 of Schedule 33 to the Finance Act 2004, or regulations made under sub-paragraph (c) of that paragraph, modified as follows— i in paragraph 4, in the words preceding sub-paragraph (a), omit “in relation to any contributions,”; ii in sub-paragraph (b) for “the time when the contributions are paid” substitute “the employer’s period of account which is in question”; and iii omit sub-paragraph (d). Restriction of employers' relief in respect of contributions 3 Contributions paid by an employer under a registered pension scheme, where a member is an individual referred to in section 196A(2) or (3), shall be subject to the following restrictions on relief. 4 In respect of each arrangement relating to the individual under the scheme, calculate the individual’s pension input amount (modified as follows) for the employer’s period of account in which the contributions are paid, in accordance with regulations 5 to 8. Cash balance arrangements 5 1 The individual’s pension input amount for a period of account in respect of a cash balance arrangement shall be determined in accordance with sections 230 and 232, modified as follows. 2 In both sections, for each of the references to the “pension input period” and the “pension input period of the arrangement that ends in the tax year” substitute references to the employer’s period of account in question. 3 In both section 230(4) and (5) at the end add “ignoring (if it be the case) the fact that payment of any benefits, or the amount of any recognised transfer, is subject to a contingency mentioned in section 196A(2) or (3)”. 4 In section 230(6) omit the reference to section 231. 5 The amount of any relievable pension contributions paid by or on behalf of the individual under the arrangement during the period of account is to be subtracted from the closing value. Other money purchase arrangements 6 1 The individual’s pension input amount for a period of account in respect of a money purchase arrangement other than a cash balance arrangement shall be determined in accordance with section 233, modified as follows. 2 Omit section 233(1)(a) and the word “and” which follows it. 3 For the reference to the “pension input period of the arrangement that ends in the tax year” substitute a reference to the employer’s period of account in question. Defined benefits arrangements 7 1 The individual’s pension input amount for a period of account in respect of a defined benefits arrangement shall be determined in accordance with sections 234 and 236, modified as follows. 2 In both sections, for each of the references to the “pension input period” and the “pension input period of the arrangement that ends in the tax year” substitute references to the employer’s period of account in question. 3 In section 234(4) and (5), in each of the definitions of PB, LSB, PE and LSE at the end add “ignoring (if it be the case) the fact that payment of any benefits, or the amount of any recognised transfer, is subject to a contingency mentioned in section 196A(2) or (3)”. 4 In section 234(6) omit the reference to section 235. 5 The amount of any relievable pension contributions paid by or on behalf of the individual under the arrangement during the period of account is to be subtracted from the closing value. Hybrid arrangements 8 1 The individual’s pension input amount for a period of account in respect of a hybrid arrangement shall be determined in accordance with section 237, modified as follows. 2 Omit the references to sections 231 and 235. 3 Sections 230, 232 to 234 and 236 shall be modified in accordance with regulation 5, 6 or 7, as the case may be. Restriction of relief 9 Aggregate the pension input amounts for the period of account in question in respect of each arrangement relating to the individual under the scheme. 10 An amount equal to the aggregate pension input amount in respect of that individual for the period of account in question shall not be subject to relief within the meaning in section 196A(4). D. A. Hartnett M. J. Eland Two of the Commissioners for Her Majesty’s Revenue and Customs 14th December 2005