Draft regulations published 8 June 2011. Consultation ended 24 June 2011-06-21

The Registered Pension Scheme (Transfer of Sums and Assets) (Amendment No.2) Regulations 2011

The Registered Pension Schemes (Relevant Annuities) (Amendment) Regulations 2011

The Registered Pension Schemes (Prescribed Manner of Determining Amount of Annuities) (Amendment) Regulations 2011

HMRC has published three further sets of regulations making consequential amendments following the introduction of the drawdown pension regime under the Finance (No. 3) Bill 2011.

The draft regulations:

  • provide for transfers from a drawdown arrangement to another drawdown arrangement. Such transfers will be considered "recognised transfers" and will therefore be exempt from a tax charge;
  • make minor amendments to provisions regarding how a comparator "relevant annuity" should be determined when assessing the level of annual income which can be drawn under the capped drawdown arrangement. Individuals over the age of 85 will be treated as having remained at 85 for the purposes of the comparable annuity
  • make minor amendments to rules affecting insurance companies to be consistent with the new drawdown regime. Amendments include:
    • the reduction of the review period from five years to three years, and
    • the reduction of the maximum amount of comparable level annuity from 120% to 100%