The following Employment Tax guidance note Produced by Tolley in association with John Hayward provides comprehensive and up to date tax information covering:
IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant tax changes associated with Brexit began to take effect. This document contains guidance on subjects potentially impacted by these changes. Before continuing your research, see the Brexit ― personal and employment tax implications guidance note.
Before 6 April 2006, the framework of occupational pensions and personal pensions, etc generally relied upon the discretionary approval of HMRC. This system of approval operated even before the previous occasion of pensions tax reform in 1970.
Reforms introduced in FA 2004 replaced that system with a statutory framework associated with registered pension schemes. Now there is no compliance check on registration but HMRC can check that all the relevant conditions have been satisfied at a later date.
According to the HMRC Registered Pension Schemes Manual (RPSM):
“A registered pension scheme is a pension scheme that is registered with HMRC. It qualifies for special tax privileges not available to pension schemes that are not registered.”
The RPSM has been superseded by the Pensions Tax Manual (PTM).
The content in PTM031100 tells us that:
“...broadly the pension scheme must:1)be set up by someone with permission from the Financial Conduct Authority to set up either a personal or stakeholder pension scheme, unless the scheme is an occupational pension scheme or a public service pension scheme 2)have a scheme administrator that is resident in an EU member state or in a European Economic Area (EEA) state which is not a member of the EU, and is a fit and proper person to be a scheme administrator, and3)be set up and maintained for the sole or main purpose of providing authorised pension and lump sum benefits.”
“...broadly the pension scheme must:
be set up by someone with permission from the Financial Conduct Authority to set up either a personal or stakeholder pension scheme, unless the scheme is an occupational pension scheme or a public service pension scheme
have a scheme administrator that is resident in an EU member state or in a European Economic Area (EEA) state which is not a member of the EU, and is a fit and proper person to be a scheme administrator, and
be set up and maintained for the sole or main purpose of providing authorised pension and lump sum benefits.”
The (now archived) content from the RPSM gave a little more detail in telling us that:
“A registered pension
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