Draft regulations published 31 March 2011. Consultation ended on 13 May 2011
Announcement on Extra Statutory Concessions A10 and A11 made 31 March 2011
The draft Registered Pension Schemes (Relevant Pension Income) Regulations 2011 The draft Registered Pension Schemes (Provision of Information) (Miscellaneous Provisions) Regulations 2011
The draft Registered Pension Schemes (Prescribed Requirements of Flexible Drawdown Declaration) Regulations 2011
HMRC has issued draft regulations setting out detailed requirements to be fulfilled before an individual with lifetime pension income of at least £20,000 per year may access the whole of their drawdown fund without being subject to annual limits.
Income that will not count as "relevant income" for the purposes of the £20,000 minimum include:
- scheme pensions from DB arrangements with fewer than 20 pensioner members;
- scheme pensions from a DC arrangement where fewer than 20 pensioner members are entitled to a scheme pension;
- payments of lifetime or dependants' annuity above a prescribed level.
The regulations also set out information to be supplied to HMRC by the administrator for 2011/12 and on an ongoing basis. In addition, regulations set out the requirements for a declaration that the member must make to the scheme administrator confirming that the member meets the flexible drawdown conditions.
HMRC has announced that ESC11 (which allows individuals who move to or emigrate from the UK to split a tax year for residence purposes) will not apply to flexible drawdown, so that the whole of the flexible drawdown pension arising or accruing in the tax year will be chargeable to tax.