HMRC has published for external comment the following draft Statutory Instruments:

  • The Registered Pension Schemes (Authorized Payments) (Amendment) Regulations 2013

These draft Regulations are intended to ensure that the abolition of contacting-out of the State Second Pension through defined contribution pension schemes works as intended. The changes include clarification that age-related rebates paid by HMRC and "minimum payments" made by employers to registered pension schemes and recovered from employees are "members contributions" for the purpose of the limit on part-refund payments relating to short service.

The Registered Pension Schemes (Reduction in Pension Rates, Accounting and Assessment) (Amendment) Regulations 2013

These draft Regulations, which will come into force on 6 April this year, are intended to provide that, first, a scheme administrator making a tax return under Section 254 of the Finance Act 2004, the Accounting for Tax return, must include the tax year to which an annual allowance charge relates and, secondly, a pension can be reduced without it ceasing to be a "scheme pension" where an adjustment has been made as a result of the scheme administrator paying an individual's annual allowance charge.