Income Tax Citation, commencement and effect 1 1 These Regulations may be cited as the Registered Pension Schemes (Transfer of Sums and Assets) (Amendment) (No. 2) Regulations 2011 and come into force on 11th August 2011. 2 The amendments made by these Regulations have effect for the tax year 2011–12 and subsequent tax years. Amendment of the Registered Pension Schemes (Transfer of Sums and Assets) Regulations 2006 2 1 The Registered Pension Schemes (Transfer of Sums and Assets) Regulations 2006 are amended as follows. 2 For regulation 12 (unsecured pension fund, alternatively secured pension fund, dependants’ unsecured pension fund and dependants’ alternatively secured pension fund – recognised transfers and prescribed purposes) substitute— Member’s drawdown pension fund and dependant’s drawdown pension fund – recognised transfers and prescribed purposes 12 1 A transfer within section 169(1) of sums or assets which represent a member’s drawdown pension fund or dependant’s drawdown pension fund under an arrangement (“the old arrangement”), 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”). 2 In a case where the sums and assets become so held, the sums and assets transferred are to be treated as remaining sums and assets held under the old arrangement for the purposes prescribed— a in table 3 in the case of a member’s drawdown pension fund, and b in table 4 in the case of a dependant’s drawdown pension fund. Table 3 Prescribed purposes – member’s drawdown pension fund Provision Purpose Section 165(1) , pension rule 1 (normal minimum pension age) To determine whether the individual has reached the normal minimum pension age by reference to the day on which, in the case of income withdrawal, the first payment of drawdown pension was made under the old arrangement. Section 165(3A) (conditions for flexible drawdown arrangement) To determine whether the limit in section 165(1), pension rule 5 (withdrawal limit for drawdown pension year) is disapplied by reference to whether the limit was disapplied in relation to the old arrangement (so that if the flexible drawdown conditions have been met in relation to the old arrangement, these conditions are treated as having been met in relation to the new arrangement). Section 216(1) , benefit crystallisation event 1 (benefit crystallisation event on designation of sums or assets held as available for payment of drawdown pension to the individual) To determine whether there has been a designation of sums or assets held as available for payment of drawdown pension to the individual by reference to the designation of sums or assets held under the old arrangement (to prevent a benefit crystallisation event occurring in relation to the sums or assets becoming held under a new arrangement). Paragraph 9(1) of Schedule 28 (definition of drawdown pension year) To determine the drawdown pension year for the purpose of paragraphs 9, 10 and 10A of Schedule 28 by reference to the day on which the member first became entitled to a drawdown pension in respect of the old arrangement, except where a determination has been made under paragraph 10B(3) in which case the drawdown pension year is to be determined by reference to that determination. Paragraph 10(2) and (4)(a) of Schedule 28 (calculation of basis amount for drawdown pension year) To determine, for the reference period in which the transfer is made, the annual amount of the relevant annuity which could have been purchased by the application of the sums and assets representing the member’s drawdown pension fund on the nominated date, by reference to the sums and assets held under the old arrangement. Paragraph 10A(2) of Schedule 28 (calculation of basis amount for drawdown pension year beginning after the member’s 75th birthday) To determine, for the drawdown pension year in which the transfer is made, the annual amount of the relevant annuity which could have been purchased by the application of the sums and assets representing the member’s drawdown pension fund on the nominated date, by reference to the sums and assets held under the old arrangement. Paragraph 1(1) and (3)(a) of Schedule 29 (pension commencement lump sum) To determine whether the member has become entitled to a lump sum in connection with the member becoming entitled under an arrangement by reference to the old arrangement (to prevent a lump sum to which a member becomes entitled in connection with becoming entitled under the new arrangement being a pension commencement lump sum). Table 4 Prescribed purposes – dependant’s drawdown pension fund Provision Purpose Section 167(2A) (conditions for flexible drawdown arrangement) To determine whether the limit in section 167(1), pension death benefit rule 4 (withdrawal limit for drawdown pension year) is disapplied by reference to whether the limit was disapplied in relation to the old arrangement (so that if the flexible drawdown conditions have been met in relation to the old arrangement, these conditions are treated as having been met in relation to the new arrangement). Paragraph 23(1) of Schedule 28 (definition of drawdown pension year) To determine the drawdown pension year for the purpose of paragraphs 23, 24 and 24A of Schedule 28 by reference to the day on which the dependant first became entitled to a dependant’s drawdown pension in respect of the old arrangement, except where a determination has been made under paragraph 24B(3) in which case the drawdown pension year is to be determined by reference to that determination. Paragraph 24(2) and (4)(a) of Schedule 28 (calculation of basis amount for drawdown pension year) To determine, for the reference period in which the transfer is made, the annual amount of the relevant annuity which could have been purchased by the application of the sums and assets representing the dependant’s drawdown pension fund on the nominated date, by reference to the sums and assets held under the old arrangement. Paragraph 24A(2) of Schedule 28 (calculation of basis amount for drawdown pension year beginning after the dependant’s 75th birthday) To determine, for the drawdown pension year in which the transfer is made, the annual amount of the relevant annuity which could have been purchased by the application of the sums and assets representing the dependant’s drawdown pension fund on the nominated date, by reference to the sums and assets held under the old arrangement. Melanie Dawes Dave Hartnett Two of the Commissioners for Her Majesty’s Revenue and Customs 20th July 2011