CORPORATION TAX Citation and commencement 1 These Regulations may be cited as the Pension Protection Fund (Tax) Regulations 2006 and shall come into force on 6th April 2006. Interpretation 2 1 In this regulation— a paragraph (2) gives the meaning of the abbreviated references to Acts and instruments used in these Regulations, and b paragraph (3) deals with other expressions used in these Regulations. 2 In these Regulations— “ FA 2004 ” means the Finance Act 2004 ; “ ICTA ” means the Income and Corporation Taxes Act 1988 ; “ ITEPA 2003 ” means the Income Tax (Earnings and Pensions) Act 2003 ; “ P( No. 2)A (NI) 2008 ” means the Pensions ( No. 2) Act (Northern Ireland) 2008; “ PA 2008 ” means the Pensions Act 2008; “ the Pensions Act ” (without more) means the Pensions Act 2004 ; “ the Pensions Order ” means the Pensions (Northern Ireland) Order 2005 ; “ TCGA 1992 ” means the Taxation of Chargeable Gains Act 1992 . 3 In these Regulations— “ the Board of the Pension Protection Fund ” means the body corporate established under section 107 of the Pensions Act; “ dependant ” is to be construed in accordance with paragraph 15 of Schedule 28 to FA 2004 ; “ dependants' scheme pension ” is to be construed in accordance with paragraph 16 of Schedule 28 to FA 2004 ; “ the Fraud Compensation Fund ” has the meaning given by regulation 3(1); “ fraud compensation payment ”— in England, Wales and Scotland means a fraud compensation payment within the meaning of Part 2 of the Pensions Act (see section 182(1) of that Act), and in Northern Ireland means a fraud compensation payment within the meaning of Part 3 of the Pensions Order (see Article 165(1) of that Order); “ Part 4 ” means Part 4 of FA 2004 (pension schemes); “ the pension compensation provisions ”— in England, Wales and Scotland is to be construed in accordance with section 108 of PA 2008 (interpretation), and in Northern Ireland is to be construed in accordance with section 87 of P ( No. 2)A( NI ) 2008 (interpretation); “ the Pension Protection Fund ” has the meaning given by regulation 3(1); “ the Pensions Act Funds ” has the meaning given by regulation 3(1); “ the Pensions Act levies ” means the levies specified in paragraph (2) or (3) of regulation 3, as the case may require; “ periodic compensation ”— in England, Wales and Scotland is to be construed in accordance with Schedule 7 to the Pensions Act (pension compensation provisions) or, as the case may be, Schedule 5 to PA 2008 (pension compensation payable on discharge of pension compensation credit) , and in Northern Ireland is to be construed in accordance with Schedule 6 to the Pensions Order (pension compensation provisions) or, as the case may be, Schedule 4 to P( No. 2)A( NI ) 2008 (pension compensation payable on discharge of pension compensation credit) ; “ PPF money purchase lump sum”— in England, Wales and Scotland has the meaning given by regulation 1(2) of the Pension Protection Fund (General and Miscellaneous Amendments) Regulations 2006 (citation, commencement and interpretation), and in Northern Ireland has the meaning given by regulation 1(2) of the Pension Protection Fund (General and Miscellaneous Amendments) Regulations (Northern Ireland) 2006 (citation, commencement and interpretation). “ registered pension scheme ” has the meaning given by section 832(1) of ICTA ; “ Schedule 36 ” means Schedule 36 to FA 2004 (transitional provisions); “ scheme pension ” is to be construed in accordance with paragraph 2 of Schedule 28 to FA 2004 . Meaning of “ the Pension Protection Fund ” and other expressions 3 1 In these Regulations— “ the Pension Protection Fund ” means the Fund required to be held, managed and applied by the Board of the Pension Protection Fund under section 110(1)(a) of the Pensions Act; “ the Fraud Compensation Fund ” means the Fund required to be held, managed and applied by the Board of the Pension Protection Fund under section 110(1)(b) of the Pensions Act; “ the Pensions Act Funds ” means the Pension Protection Fund and the Fraud Compensation Fund. 2 In England, Wales and Scotland “ the Pensions Act levies ” means— a the administration levy referred to in section 117(1) of the Pensions Act; b the risk-based pension protection levy referred to in section 175(1)(a) of that Act; c the scheme-based pension protection levy referred to in section 175(1)(b) of that Act; d the fraud compensation levy referred to in section 189(1) of that Act; e a levy in respect of eligible schemes imposed by regulations made under section 209(7) of that Act (the Ombudsman for the Board of the Pension Protection Fund). 3 In Northern Ireland “ the Pensions Act levies ” means— a the administration levy referred to in Article 103(1) of the Pensions Order; b the risk-based pension protection levy referred to in Article 158(1)(a) of that Order; c the scheme-based pension protection levy referred to in Article 158(1)(b) of that Order; d the fraud compensation levy referred to in Article 171(1) of that Order; e a levy in respect of eligible schemes imposed by regulations made under Article 191(3) of that Order (the PPF Ombudsman). Application of the Tax Acts: general 4 1 The Tax Acts apply in relation to the Pension Protection Fund in the same way as they apply in relation to a registered pension scheme. 2 The general rule in paragraph (1) is subject to the further provisions contained in these Regulations. Application of Part 4 of FA 2004: further provisions 5 Section 151 of FA 2004 (meaning of “ member ”) applies as if, in Part 4, “ member ” in relation to the Pension Protection Fund, meant— a an individual in receipt of compensation from the Pension Protection Fund, ... b an individual who expects to receive such compensation following the assumption of responsibility, by the Board of the Pension Protection Fund, for a scheme of which that individual was a member, or c an individual who receives a PPF money purchase lump sum. 6 1 Section 152 of FA 2004 (meaning of “ arrangement ”) applies as if, in Part 4, “ arrangement ”, in relation to an individual specified in paragraph (2), meant an arrangement specified in paragraph (3). 2 An individual is specified for the purposes of this paragraph if the individual— a is in receipt of compensation from the Pension Protection Fund, ... b expects to receive such compensation following the assumption of responsibility, by the Board of the Pension Protection Fund, for a scheme of which that individual was a member, or c receives a PPF money purchase lump sum. 3 An arrangement is specified for the purposes of this paragraph if— a in relation to an individual falling within paragraph (2)(a) or (b), it is an arrangement under which the individual receives (or, as the case may be, expects to receive)— i compensation paid under Schedule 7 to the Pensions Act or, as the case may be, Schedule 5 to PA 2008 (pension compensation provisions), or ii compensation paid under Schedule 6 to the Pensions Order or, as the case may be, Schedule 4 to P ( No. 2)A( NI ) 2008 (pension compensation provisions), or b in relation to an individual falling within paragraph (2)(c), it is an arrangement under which the individual receives a PPF money purchase lump sum. 7 Chapter 2 of Part 4 (registration of pension schemes) does not apply in relation to the Pension Protection Fund. 8 Section 164 of FA 2004 (authorised member payments) applies as if it also provided that the Board of the Pension Protection Fund was authorised to make the following payments to or in respect of a member— a payments of an amount falling within section 166(2) of the Pensions Act (duty to pay scheme benefits unpaid at assessment date); b payments of an amount falling within Article 150(2) of the Pensions Order (duty to pay scheme benefits unpaid at assessment date) ; c a payment of a PPF money purchase lump sum. 9 1 For the purposes of Part 4, payment of periodic compensation from the Pension Protection Fund to an individual is treated as payment of a scheme pension to a member of a registered pension scheme (see section 165 of FA 2004: pension rules). 2 The payment of such compensation is treated as meeting the condition specified in paragraph 2(2)(a) of Schedule 28 to FA 2004 (condition relating to payer of scheme pension). 10 1 This regulation applies if— a either condition A or B is met, and b condition C is met. 2 Condition A is that the Board of the Pension Protection Fund is responsible for securing that compensation is (and has been) paid to an individual in accordance with the pension compensation provisions. 3 Condition B is that the Board of the Pension Protection Fund is required to secure the discharge of liabilities to an individual in respect of benefits transferred to the Board under— a Chapter 3 of Part 2 of the Pensions Act (pension protection), or b Chapter 3 of Part 3 of the Pensions Order (pension protection). 4 Condition C is that the Board of the Pension Protection Fund provides for the securing of— a the payment of compensation in the circumstances specified in condition A, or b the discharge of liabilities in the circumstances specified in condition B, by the entry into an annuity contract or a number of such contracts. 5 For the purposes of Part 4, payment of an annuity under an annuity contract mentioned in paragraph (4) is treated as payment of a scheme pension. 6 If this regulation applies, so much of Pension rule 4 in section 165(1) of FA 2004 (pension rules) as provides that a scheme pension may only be paid if the member had an opportunity to select a lifetime annuity instead is treated as omitted. 11 1 Section 166 of FA 2004 (lump sum rule) and Part 1 of Schedule 29 to that Act (authorised lump sums: lump sum rule) apply with the following modifications to the payment of lump sums by the Pension Protection Fund to an individual. 2 Section 166(2) of FA 2004 (time at which a person becomes entitled to a lump sum) applies as if the person becomes entitled to a lump sum when a person acquires an actual (rather than a prospective) right to receive the lump sum. 3 In Schedule 29 to FA 2004, paragraph 5(1)(a) is treated as omitted. 12 1 For the purposes of Part 4, payment of periodic compensation from the Pension Protection Fund to a dependant of an individual is treated as payment of a dependants' scheme pension in respect of a member of a registered pension scheme (see section 167 of FA 2004: pension death benefit rules). 2 The payment of such compensation is treated as meeting the condition specified in paragraph 16(2)(a) of Schedule 28 to FA 2004 (condition relating to payer of dependants' scheme pension). 13 1 This regulation applies if— a either condition A or B is met, and b condition C is met. 2 Condition A is that the Board of the Pension Protection Fund is responsible for securing that compensation is (and has been) paid to a dependant of an individual in accordance with the pension compensation provisions. 3 Condition B is that the Board of the Pension Protection Fund is required to secure the discharge of liabilities to a dependant of an individual in respect of benefits transferred to the Board under— a Chapter 3 of Part 2 of the Pensions Act (pension protection), or b Chapter 3 of Part 3 of the Pensions Order (pension protection). 4 Condition C is that the Board of the Pension Protection Fund provides for the securing of— a the payment of compensation in the circumstances specified in condition A, or b the discharge of liabilities in the circumstances specified in condition B, by the entry into an annuity contract or a number of such contracts. 5 For the purposes of Part 4, payment of an annuity under an annuity contract mentioned in paragraph (4) is treated as payment of a dependants' scheme pension. 6 If this regulation applies, so much of Pension death benefit rule 3 in section 167(1) of FA 2004 (pension death benefit rules) as provides that a dependants' scheme pension may only be paid if the member or dependant had an opportunity to select a dependants' annuity instead is treated as omitted. 14 1 Section 168 of FA 2004 (lump sum death benefit rule) and Part 2 of Schedule 29 to that Act (authorised lump sums: lump sum death benefit rule) apply to the payment of lump sums by the Pension Protection Fund to a dependant of a qualifying individual. 2 In paragraph (1) a “qualifying individual” means— a an individual who was a member of a scheme for which the Board of the Pension Protection Fund has assumed responsibility, or b an individual who was a transferee entitled to a pension compensation credit referred to in section 111(1) of PA 2008 or section 89(1) of P ( No. 2)A( NI ) 2008 (creation of pension compensation debits and credits). 15 Sections 175 to 181 of FA 2004 (authorised and unauthorised employer payments) do not apply in relation to the Pension Protection Fund. 16 Sections 182 to 185 of FA 2004 (borrowing) do not apply in relation to the Pension Protection Fund. 17 1 Section 186 of FA 2004 (exemption from tax on certain types of income) applies in relation to each of the Pensions Act Funds as if in subsection (1) for the reference to income tax there were substituted a reference to corporation tax. 2 The exemption provided by section 186(1) of FA 2004 (as modified by paragraph (1)) in relation to each of the Pensions Act Funds also applies in respect of— a any profit, gain or loss on a loan relationship within the meaning of Chapter 2 of Part 4 of the Finance Act 1996 (loan relationships), and b any amount received on account of the Pensions Act levies. 18 1 Any amount recovered by an individual's employer on account of any of the Pensions Act levies is treated in the same way as relievable pension contributions paid during a tax year (see section 188 of FA 2004: relief for contributions). 2 In paragraph (1) “ tax year ” has the meaning given by section 279(1) of FA 2004. 19 Relief on any amount recovered by an individual's employer on account of any of the Pensions Act levies may be given in accordance with section 193 of FA 2004 (relief under net pay arrangements). 20 Sections 197 and 198 of FA 2004 (spreading of relief) do not apply in relation to any sum paid by an employer on account of any of the Pensions Act levies. 21 Section 199 of FA 2004 (deemed contributions) applies in relation to any sum paid by an employer on account of any of the Pensions Act levies as it applies in relation to a sum paid by an employer in or towards the discharge of any liability of the employer under the enactments specified in subsection (1) of that section. 22 Section 213 of FA 2004 (surchargeable unauthorised employer payments) does not apply in relation to the Pension Protection Fund. 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23A Paragraph 20A of Schedule 36 to FA 2004 (pension credits from previously crystallised rights) applies as if, in relation to the Pension Protection Fund— a in sub-paragraph (5) for “or Article 26(1) of WRP( NI )O 1999” there were substituted “, Article 26(1) of WRP( NI )O 1999, section 111(1) of the Pensions Act 2008 or section 89(1) of the Pensions ( No. 2) Act (Northern Ireland) 2008”, b in sub-paragraph (6)(a) for “or Article 26(2) or (3)(b) of WRP( NI )O 1999” there were substituted “, Article 26(2) or (3)(b) of WRP( NI )O 1999, section 111(2)(a) or (b)(ii) of the Pensions Act 2008 or section 89(2)(a) or (b)(ii) of the Pensions ( No. 2) Act (Northern Ireland) 2008”, and c in sub-paragraph (6)(b) for “or Article 26(3)(a) of WRP( NI )O 1999” there were substituted “, Article 26(3)(a) of WRP( NI )O 1999, section 111(2)(b)(i) of the Pensions Act 2008 or section 89(2)(b)(i) of the Pensions ( No. 2) Act (Northern Ireland) 2008”. 24 Section 242 of FA 2004 (de-registration charge) does not apply in relation to the Pension Protection Fund. 25 Chapter 6 of Part 4 (schemes that are not registered pension schemes) does not apply in relation to the Pension Protection Fund. 26 1 References in Part 4 to the scheme administrator, in relation to a pension scheme (see section 270 of FA 2004: meaning of “ scheme administrator ”), are to be treated as references to the scheme administrator of the Pension Protection Fund. 2 For the purposes of paragraph (1) the “ scheme administrator of the Pension Protection Fund ” means the person appointed by the Board of the Pension Protection Fund to be responsible for the discharge of the functions conferred or imposed on the scheme administrator of the Pension Protection Fund by and under Part 4. 27 1 If section 272 of FA 2004 (trustees etc. liable as scheme administrator) applies in relation to the Pension Protection Fund, the Board of the Pension Protection Fund assumes liability by reason of that section applying in relation to that Fund. 2 For the purposes of section 272(4) of FA 2004 (specification of persons assuming liability) the Board of the Pension Protection Fund are treated as persons who assume liability by virtue of being specified under Head 2. 28 Section 273 of FA 2004 (members liable as scheme administrator) does not apply in relation to the Pension Protection Fund. 28A Section 279(1) of FA 2004 (other definitions) applies as if, in relation to the Pension Protection Fund— a “pension credit” included any pension compensation credit mentioned in section 111(1)(b) of PA 2008 or section 89(1)(b) of P ( No. 2)A( NI ) 2008 (creation of pension compensation debits and credits), b “pension debit” included any pension compensation debit mentioned in section 111(1)(a) of PA 2008 or section 89(1)(a) of P ( No. 2)A( NI ) 2008 (creation of pension compensation debits and credits), and c “pension sharing order or provision” included any pension compensation sharing order or provision mentioned in section 109 of PA 2008 or section 88 of P ( No. 2)A( NI ) 2008 (activation of pension compensation sharing). 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 1 This regulation applies if there is a transfer to the Board of the Pension Protection Fund of all sums and assets held for the purposes of, or representing accrued rights under, an arrangement relating to an individual under a registered pension scheme. 2 For the purposes of paragraph 12 of Schedule 36 (enhanced protection) the transfer is treated as a permitted transfer by virtue of sub-paragraph (8)(b) of that paragraph 3 This regulation is to be construed as one with paragraph 12 of Schedule 36. 31 1 For the purposes of Part 3 of Schedule 36 (pre-commencement benefit rights), the transfer of the property, rights and liabilities of a scheme to the Board of the Pension Protection Fund in accordance with a relevant transfer notice is treated as a block transfer within the meaning given by paragraph 22(6) of Schedule 36. 2 But for the purposes of determining the compensation payable where the Board of the Pension Protection Fund assumes responsibility for a scheme in accordance with Chapter 3 of Part 2 of the Pensions Act or Chapter 3 of Part 3 of the Pensions Order (pension protection), paragraph (1) does not affect the application of— a Schedule 7 to the Pensions Act (pension compensation provisions) or regulations made under that Schedule, or b Schedule 6 to the Pensions Order (pension compensation provisions) or regulations made under that Schedule. 3 In paragraph (1) a “ relevant transfer notice ” means— a a transfer notice given under section 160 of the Pensions Act (transfer notice), or b a transfer notice given under Article 144 of the Pensions Order (transfer notice). 32 Paragraph 36 of Schedule 36 ( ... right to payment of lump sum death benefit) does not apply in relation to the Pension Protection Fund. Application of the Inheritance Tax Act 1984: further provisions 33 Section 58 of the Inheritance Tax Act 1984 (relevant property) applies in relation to property which is held for the purposes of the Pension Protection Fund as it applies in relation to property which is held for the purposes of a registered pension scheme. 34 Section 151 of the Inheritance Tax Act 1984 (treatment of pension rights) applies in relation to an interest in or under the Pension Protection Fund as it applies in relation to an interest in or under a registered pension scheme. Application of ICTA: further provisions 35 1 Section 413(3) of ICTA (group relief: interpretation) applies as if it provided that two companies shall be deemed to be members of a group of companies if— a one company is the 75 per cent. subsidiary of the other and neither company is the Board of the Pension Protection Fund, or b both companies are 75 per cent. subsidiaries of the Board of the Pension Protection Fund. 2 This regulation is to be construed as one with Chapter 4 of Part 10 of ICTA (group relief). 36 1 If the Board of the Pension Protection Fund acquires more than half the ordinary share capital of a company (so that, accordingly, the condition in paragraph (a) of section 769(1) of ICTA is met), there is no change in the ownership of the company for the purposes of sections 767A to 768E of ICTA (change in ownership of company). 2 This regulation is to be construed as one with sections 767A to 768E of ICTA. Application of TCGA 1992: further provisions 37 1 For the purposes of section 170 of TCGA 1992 (groups of companies), none of the following may be a member of a group— a the Board of the Pension Protection Fund; b the Pension Protection Fund; c the Fraud Compensation Fund. 2 This regulation is to be construed as one with TCGA 1992. 38 1 For the purposes of TCGA 1992, any gain accruing to the Board of the Pension Protection Fund from its disposal of investments shall not be a chargeable gain if, or to the extent that, at the time of the disposal, those investments were held by the Board, or on its behalf, for the purposes of one of the Pensions Act Funds. 2 In paragraph (1) “ investments ” includes futures contracts and options contracts. 3 This regulation is to be construed as one with TCGA 1992. Application of ITEPA 2003: further provisions 39 Step 5 of section 54(1) of ITEPA 2003 (calculation of deemed employment payment under arrangements made by intermediaries) applies in relation to a payment, by the intermediary, of any sum in respect of any of the Pensions Act levies in the same way as it applies in relation to any contributions that may be deducted under that step. 40 Section 307 of ITEPA 2003 (exemption from employment income for death or retirement benefit provision made by employer) applies in relation to the payment of any sum in respect of any of the Pensions Act levies in the same way as it applies in respect of provision made by an employee's employer for a retirement or death benefit. 41 Section 579A of ITEPA 2003 (pensions) applies in relation to periodic compensation from the Pension Protection Fund as it applies to any pension under a registered pension scheme. 42B 1 This regulation modifies Chapter 15A of Part 9 of ITEPA 2003 (pension income: lump sums under registered pension schemes) in relation to certain lump sums paid by the PPF. 2 That Chapter has effect as if, after section 637G (trivial commutation lump sums and winding-up lump sums) there were inserted— PPF compensation commutation lump sums and PPF pension credit commutation lump sums 637GA 1 Subject to subsection (2) , no liability to income tax arises on a PPF compensation commutation lump sum or a PPF pension credit commutation lump sum. 2 If the amount of the lump sum exceeds the permitted maximum, section 579A (pensions) applies to the excess as it applies to any pension under a registered pension scheme. 3 In subsection (2) “ the permitted maximum ”, in relation to a PPF compensation commutation lump sum or a PPF pension credit commutation lump sum, means the lower of— a so much of the individual’s lump sum allowance as is available on the individual becoming entitled to the lump sum (see section 637Q), and b so much of the individual’s lump sum and death benefit allowance as is available on the individual becoming entitled to the lump sum (see section 637S). PPF terminal illness lump sums 637GB 1 Subject to subsection (2) , no liability to income tax arises on a PPF terminal illness lump sum. 2 If the amount of the lump sum exceeds the permitted maximum, section 579A (pensions) applies to the excess as it applies to any pension under a registered pension scheme. 3 In subsection (2) “ the permitted maximum ”, in relation to a PPF terminal illness lump sum, means so much of the individual’s lump sum and death benefit allowance as is available on the individual becoming entitled to the lump sum (see section 637S). Miscellaneous PPF lump sums 637GC 1 Subject to subsection (3) , an individual to whom a lump sum within subsection (2) is paid is treated as having taxable pension income for the tax year in which the payment is made equal to the amount of the lump sum. 2 The lump sums are— a a PPF compensation commutation excess lump sum; b a PPF money purchase lump sum; c a PPF money purchase trivial commutation lump sum; d a PPF pension credit commutation excess lump sum. 3 If, immediately before the lump sum is paid, the member has uncrystallised rights under any one or more arrangements under the PPF, the amount of the taxable pension income is reduced by the tax-free element (if any). 4 In subsection (3) “ the tax free element ” means 25% of the value of any uncrystallised rights extinguished by the lump sum. 5 In this section “ uncrystallised rights ” has the same meaning as in section 212 of FA 2004; and the value for the purposes of this section of any uncrystallised rights is to be calculated in accordance with that section. . 3 Section 637Q of ITEPA 2003 (availability of individual’s lump sum allowance) has effect as if, in the definition of “relevant lump sum” in subsection (2)(b) of that section— a the “or” at the end of sub-paragraph (i) were omitted; b after sub-paragraph (ii) there were inserted— iii a PPF compensation commutation lump sum, or iv a PPF pension credit commutation lump sum. . 4 Section 637S of ITEPA 2003 (availability of individual’s lump sum and death benefit allowance) has effect as if, in the definition of “relevant lump sum” in subsection (2)(b) of that section— a the “or” at the end of sub-paragraph (ii) were omitted; b after sub-paragraph (iii) there were inserted— iv a PPF compensation commutation lump sum, v a PPF pension credit commutation lump sum, or vi a PPF terminal illness lump sum. . 5 For the purposes of this regulation (including the modifications made by it)— “ PPF compensation commutation excess lump sum ” means— a lump sum paid under paragraph 24 of Schedule 7 to the Pensions Act 2004 (pension compensation provisions: commutation of periodic compensation), where the portion of periodic compensation commuted exceeds 25%, or a lump sum paid under paragraph 24 of Schedule 6 to the Pensions (Northern Ireland) Order 2005 (pension compensation provisions: commutation of periodic compensation), where the portion of periodic compensation commuted exceeds 25%; “ PPF compensation commutation lump sum ” means— a lump sum paid under paragraph 24 of Schedule 7 to the Pensions Act 2004, where the portion of periodic compensation commuted does not exceed 25%, or a lump sum paid under paragraph 24 of Schedule 6 to the Pensions (Northern Ireland) Order 2005, where the portion of periodic compensation commuted does not exceed 25%; “ PPF money purchase lump sum ” means a lump sum paid under— regulation 9A of the Pension Protection Fund (General and Miscellaneous Amendments) Regulations 2006 (PPF money purchase lump sums), or regulation 9A of the Pension Protection Fund (General and Miscellaneous Amendments) Regulations (Northern Ireland) 2006 (PPF money purchase lump sums); “ PPF money purchase trivial commutation lump sum ” means a lump sum paid under— regulation 9 of the Pension Protection Fund (General and Miscellaneous Amendments) Regulations 2006 (trivial commutation), or regulation 9 of the Pension Protection Fund (General and Miscellaneous Amendments) Regulations (Northern Ireland) 2006 (trivial commutation); “ PPF pension credit commutation excess lump sum ” means— a lump sum paid under paragraph 9 of Schedule 5 to the Pensions Act 2008 (pension compensation payable on discharge of pension compensation credit: commutation of periodic compensation), where the portion of periodic compensation commuted exceeds 25%, or a lump sum paid under paragraph 9 of Schedule 4 to the Pensions (No. 2) Act (Northern Ireland) 2008 (pension compensation payable on discharge of pension compensation credit: commutation of periodic compensation), where the portion of periodic compensation commuted exceeds 25%; “ PPF pension credit commutation lump sum ” means— a lump sum paid under paragraph 9 of Schedule 5 to the Pensions Act 2008, where the portion of periodic compensation commuted does not exceed 25%, or a lump sum paid under paragraph 9 of Schedule 4 to the Pensions (No. 2) Act (Northern Ireland) 2008, where the portion of periodic compensation commuted does not exceed 25%; “ PPF terminal illness lump sum ” means a lump sum paid under— paragraph 25E of Schedule 7 to the Pensions Act 2004 (pension compensation provisions: terminal illness lump sum: effect of successful application), paragraph 25E of Schedule 6 to the Pensions (Northern Ireland) Order 2005 (pension compensation provisions: terminal illness lump sum: effect of successful application), paragraph 15 of Schedule 5 to the Pensions Act 2008 (pension compensation payable on discharge of pension compensation credit: terminal illness lump sum: effect of successful application), or paragraph 15 of Schedule 4 to the Pensions (No. 2) Act (Northern Ireland) 2008 (pension compensation payable on discharge of pension compensation credit: terminal illness lump sum: effect of successful application). Application of the Finance Act 2003: further provisions 43 1 Paragraph 8 of Schedule 4 to the Finance Act 2003 (debt as consideration) does not apply in relation to the Pension Protection Fund if— a the Board of the Pension Protection Fund acquires a chargeable interest as part of its assumption of responsibility for a scheme in accordance with Chapter 3 of Part 2 of the Pensions Act or Chapter 3 of Part 3 of the Pensions Order (pension protection), and b the chargeable interest is held by the Board of the Pension Protection Fund as an investment. 2 Paragraph 1 of Schedule 7 to the Finance Act 2003 (group relief) applies in relation to a group of companies of which the Board of the Pension Protection Fund is a member as if, in the case of each reference to 75%, there were substituted a reference to 50%. 3 For the purposes of paragraph 3(1) of Schedule 7 to the Finance Act 2003 (withdrawal of group relief) there is no withdrawal of group relief if the vendor is the Board of the Pension Protection Fund. 4 This regulation is to be construed as one with Part 4 of the Finance Act 2003 (stamp duty land tax). Fraud compensation payments and other related payments 44 1 Receipt of a payment to which this regulation applies shall not be regarded as a disposal of an asset for the purposes of capital gains tax or for the purposes of corporation tax on chargeable gains. 2 This regulation applies to— a a fraud compensation payment under section 185 of the Pensions Act; b an interim payment under section 186 of the Pensions Act; c a fraud compensation payment under Article 168 of the Pensions Order; d an interim payment under Article 169 of the Pensions Order; e a payment made by the Board of the Pension Protection Fund under section 83 of the Pensions Act 1995 ; f a payment in anticipation made by the Board of the Pension Protection Fund under section 84 of that Act; g a payment made by the Board of the Pension Protection Fund under Article 81 of the Pensions (Northern Ireland) Order 1995 ; h a payment in anticipation made by the Board of the Pension Protection Fund under Article 82 of that Order. Tom Watson Vernon Coaker Two of the Lords Commissioners of Her Majesty's Treasury 9th March 2006