Income Tax Citation, commencement and effect 1 1 These Regulations may be cited as the Registered Pension Schemes and Relieved Non-UK Pension Schemes (Lifetime Allowance Transitional Protection) (Amendment) Regulations 2013 and come into force on 12th August 2013. 2 Regulations 2(2), 2(4) and 2(5) have effect for the tax year 2012 – 13 and subsequent tax years. 3 Regulation 2(3) has effect for the tax year 2013 – 14 and subsequent tax years. Amendments to Schedule 18 to the Finance Act 2011 2 1 Paragraph 14 of Schedule 18 to the Finance Act 2011 (transitional provisions) is amended by paragraphs (2) to (5). 2 After sub-paragraph (1) insert— 1A This paragraph also applies on or after 6 April 2012 in the case of an individual— a who, on that date— i has one or more arrangements under a relieved non-UK pension scheme of which the individual is a relieved member, and ii is not a member of a registered pension scheme, b in relation to whom paragraph 7 of Schedule 36 to FA 2004 (primary protection) does not make provision for a lifetime allowance enhancement factor, and c in relation to whom paragraph 12 of that Schedule (enhanced protection) does not apply on that date, if notice of intention to rely on it is given to an officer of Revenue and Customs. . 3 After sub-paragraph (4) insert— 4A Subject to sub-paragraphs (4B) to (4E), sub-paragraph (4) applies in relation to an individual who is a relieved member of a relieved non-UK pension scheme as if the scheme were a registered pension scheme; and the other sub-paragraphs of this paragraph apply accordingly. 4B In relation to an arrangement under a relieved non-UK pension scheme, in sub-paragraph (4) the reference to 6 April 2012 is to be read as a reference to 6 April 2013. 4C Sub-paragraphs (4D) and (4E) apply (instead of sub-paragraph (5)) for the purposes of sub-paragraph (4)(a) in determining if there is benefit accrual in relation to an individual under an arrangement under a relieved non-UK pension scheme of which the individual is a relieved member. 4D There is benefit accrual in relation to the individual under the arrangement if there is a pension input amount under sections 230 to 237 of FA 2004 (as applied by Schedule 34 to that Act) greater than nil in respect of the arrangement for a tax year; and, in such a case, the benefit accrual is treated as occurring at the end of the tax year. 4E There is also benefit accrual in relation to the individual under the arrangement if— a in a tax year there occurs a benefit crystallisation event in relation to the individual (whether in relation to the arrangement or to any other arrangement under any pension scheme or otherwise), and b had the tax year ended immediately before the benefit crystallisation event, there would have been a pension input amount under sections 230 to 237 of FA 2004 greater than nil in respect of the arrangement for the tax year, and, in such a case, the benefit accrual is treated as occurring immediately before the benefit crystallisation event. . 4 For sub-paragraphs (13) and (14) substitute— 13 The relevant percentage, in relation to a tax year, means— a where the arrangement (or a predecessor arrangement) includes provision for the value of the rights of the individual to increase during the tax year at an annual rate specified in the rules of the pension scheme (or a predecessor registered pension scheme) on 9 December 2010— i the percentage specified (or, where more than one arrangement includes such provision, the higher or highest of the percentages specified), plus ii the relevant statutory increase percentage; b where the arrangement (or a predecessor arrangement) includes provision for the value of the rights of the individual to increase during the tax year at an annual rate specified by reference to the retail prices index in the rules of the pension scheme (or a predecessor registered pension scheme) on 6 April 2012 which does not exceed an increase in the retail prices index— i the percentage specified (or, where more than one arrangement includes such provision, the higher or highest of the percentages specified), plus ii the relevant statutory increase percentage; or c otherwise— i an increase in the consumer prices index, or ii if higher, the relevant statutory increase percentage. Where both paragraphs (a) and (b) would otherwise apply giving different percentages, the paragraph giving the higher percentage applies. 14 In sub-paragraph (13)— “predecessor arrangement”, in relation to an arrangement, means another arrangement (under the same or another registered pension scheme) from which some or all of the sums or assets held for the purposes of the arrangement directly or indirectly derive; “predecessor registered pension scheme”, in relation to a pension scheme, means another registered pension scheme from which some or all of the sums or assets held for the purposes of the arrangement under the pension scheme directly or indirectly derive; “an increase in the retail prices index” means the percentage by which the retail prices index for a month specified in the rules of the pension scheme (or predecessor pension scheme) is higher than it was for the same month in the year before (or nil per cent if it is not higher); “an increase in the consumer prices index” means the percentage by which the consumer prices index for the month of September in the previous tax year is higher than it was for the same month in the year before (or nil per cent if it is not higher). 14A In sub-paragraph (13) “the relevant statutory increase percentage”, in relation to a tax year, means the percentage increase in the value of the individual’s rights under the arrangement during the tax year so far as it is attributable solely to one or more of the following— a an increase in accordance with section 15 of the Pension Schemes Act 1993 or section 11 of the Pension Schemes (Northern Ireland) Act 1993 (increase of guaranteed minimum where commencement of guaranteed minimum pension postponed); b a revaluation in accordance with section 16 of the Pension Schemes Act 1993 or section 12 of the Pension Schemes (Northern Ireland) Act 1993 (early leavers: revaluation of earnings factors); c a revaluation in accordance with Chapter 2 of Part 4 of the Pension Schemes Act 1993 or the Pension Schemes (Northern Ireland) Act 1993 (early leavers: revaluation of accrued benefits); d a revaluation in accordance with Chapter 3 of Part 4 of the Pension Schemes Act 1993 or the Pension Schemes (Northern Ireland) Act 1993 (early leavers: protection of increases in guaranteed minimum pensions); e the application of section 67 of the Equality Act 2010 (sex equality rule for occupational pension schemes). 14B Sub-paragraph (14C) applies in relation to a tax year if— a the arrangement is a defined benefits arrangement which is under an annuity contract treated as a registered pension scheme under section 153(8) of FA 2004, b the contract provides for the value of the rights of the individual to be increased during the tax year at an annual rate specified in the contract, and c the contract limits the annual rate to the percentage increase in the retail prices index over a 12 month period specified in the contract. 14C Sub-paragraph (13)(c)(i) applies as if it referred instead to the annual rate of the increase in the value of the rights during the tax year. 14D For the purposes of sub-paragraph (14B)(c) the 12 month period must end during the 12 month period preceding the month in which the increase in the value of the rights occurs. . 5 After sub-paragraph (18) insert— 19 In particular, references to a relieved non-UK pension scheme or a relieved member of such a scheme are to be read in accordance with paragraphs 13(3) and (4) and 18 of Schedule 34 to FA 2004 (application of lifetime allowance charge provisions to members of overseas pension schemes). . Amendment to the Registered Pension Schemes (Lifetime Allowance Transitional Protection) Regulations 2011 3 1 The Registered Pension Schemes (Lifetime Allowance Transitional Protection) Regulations 2011 is amended by paragraphs (2) and (3). 2 In Regulation 4(2) for paragraph (b) substitute— b received by Her Majesty’s Revenue and Customs on or before the following dates— i if it relates to an individual described in sub-paragraph (1) of paragraph 14, 5 April 2012; or ii if it relates to an individual described in sub-paragraph (1A) of paragraph 14, 5 April 2014. . 3 In Regulation 13(1) omit “in relation to any sums or assets held for the purposes of a registered pension scheme”. Edward Troup Ruth Owen Two of the Commissioners for Her Majesty’s Revenue and Customs At 11.05 a.m. on 19th July 2013