Pensions: offshore transfers

Finance (No. 2) Bill – in the House of Commons at 2:45 pm on 25th April 2017.

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Amendments made: 30, page 172, line 23, after “sub-paragraph” insert “(6C) or”.

Amendment 31, page 174, line 21, at end insert—

‘(4A) In sub-paragraph (4) (power to specify whether payments by scheme are referable to relevant transfer fund), after “payments or transfers made (or treated as made) by” insert “, or other things done by or to or under or in respect of or in the case of,”.’

Amendment 32, page 176, line 28, leave out “with the next 5” and insert—“immediately before the next 6”.

Amendment 33, page 177, line 1, leave out “with the next 5” and insert—

“immediately before the next 6”.

Amendment 34, page 178, line 8, leave out

“for the purposes of sections 244L and 254”.

Amendment 35, page 178, line 28, leave out

“for the purposes of sections 244L and 254”.

Amendment 36, page 178, line 48, leave out

“for the purposes of sections 244L and 254”.

Amendment 37, page 179, line 18, leave out

“for the purposes of sections 244L and 254”.

Amendment 38, page 180, line 19, leave out “was” and insert “has been”.

Amendment 39, page 180, line 21, leave out “was” and insert “has been”.

Amendment 40, page 183, line 17, leave out from beginning to fourth “the”.

Amendment 41, page 184, leave out lines 30 to 38.

Amendment 42, page 188, line 8, at end insert—

“17A In Schedule 32 (benefit crystallisation events: supplementary provision), after paragraph 2 insert—

‘Avoiding double counting of refunded amounts of overseas transfer charge

2A (1) This paragraph applies where an amount of overseas transfer charge is repaid (whether or not under section 244M) to the scheme administrator of one of the relevant pension schemes.

(2) The amount crystallised by the first benefit crystallisation event that occurs in respect of the individual and a benefited scheme after receipt of the repayment is to be reduced (but not below nil) by the amount of the repayment.

(3) If the amount of the repayment exceeds the reduction under sub-paragraph (2), the excess is to be set sequentially until exhausted against the amounts crystallised by subsequent benefit crystallisation events occurring in respect of the individual and a benefited scheme.

(4) In sub-paragraphs (2) and (3) “benefited scheme” means—

(a) the scheme to which the repayment is made, and

(b) any other pension scheme if as a result of a recognised transfer, or a chain of two or more recognised transfers, sums or assets representing the repayment are held for the purposes of, or represent rights under, that other scheme.’”

Amendment 43, page 188, line 38, at end insert—

‘(1A) In those Regulations, after regulation 13 insert—

“14 Claims for repayments of overseas transfer charge

(1) This regulation applies where the scheme administrator of a registered pension scheme becomes aware that the scheme administrator may be entitled to a repayment under section 244M of the Act in respect of overseas transfer charge on a transfer.

(2) The scheme administrator must, no later than 60 days after the date on which the scheme administrator becomes aware of that, make a claim for the repayment to the Commissioners for Her Majesty’s Revenue and Customs.

(3) The claim must provide the following information—

(a) the member’s name, date of birth and principal residential address,

(b) the date of the transfer and, if different, the date of the event triggering payability of the charge on the transfer,

(c) the date on which the scheme manager accounted for the charge on the transfer,

(d) why the charge on the transfer has become repayable, and

(e) the amount in respect of which the claim is made.

(4) In a case where the 60 days mentioned in paragraph (2) ends with a day earlier than 14 November 2017, paragraph (2) is to be treated as requiring the claim to be made no later than 14 November 2017.”’

Amendment 44, page 188, line 39, leave out “this paragraph” and insert “sub-paragraph (1)”.

Amendment 45, page 188, line 42, at end insert—

“( ) The amendment made by sub-paragraph (1A) is to be treated as having been made by the Commissioners for Her Majesty’s Revenue and Customs under the powers to make regulations conferred by section 244M(8) of FA 2004.”

Amendment 46, page 190, line 3, at end insert—

‘(4A) In regulation 3(3)(a) (reporting duty under regulation 3(2) expires after 10 years from creation of relevant transfer fund), after “beginning” insert “—

(i) if the payment is in respect of one or more of the relevant member’s ring-fenced transfer funds (whether or not it is also in respect of anything else), with the key date for that fund or (as the case may be) the later or latest of the key dates for those funds, and

(ii) if the payment is not to any extent in respect of the relevant member’s ring-fenced transfer funds,”.’

Amendment 47, page 191, line 26, after “take” insert “place”.

Amendment 48, page 192, line 26, at end insert—

“3AEA  Information provided by member to QROPS: inward and outward transfers

(1) Paragraph (2) applies where—

(a) a recognised transfer or onward transfer is made to a QROPS, or an onward transfer is made by a QROPS or former QROPS, and

(b) either—

(i) the overseas transfer charge arises in the case of the transfer, or

(ii) the transfer is required by section 244B or 244C to be initially assumed to be excluded from the overseas transfer charge by that section.

(2) Each time during the relevant period for the transfer that the member—

(a) becomes resident in a country or territory, or

(b) ceases to be resident in a country or territory,

the member must, within 60 days after the date that happens, inform the scheme manager of the QROPS or former QROPS that it has happened.

(3) In a case where the 60 days mentioned in paragraph (2) ends with a day earlier than 30 June 2017, paragraph (2) is to be treated as requiring the information to be given no later than 30 June 2017.”

Amendment 49, page 194, line 23, at end insert—

“3AK Claims for repayments of charge on subsequent excluding events

(1) Repayment under section 244M (repayments of overseas transfer charge) to the scheme manager of a QROPS or former QROPS is conditional on making a claim to HMRC.

(2) Such a claim in respect of overseas transfer charge on a transfer—

(a) must be in writing,

(b) must be made no later than 12 months after the end of the relevant period for the transfer, and

(c) must provide the following information—

(i) the member’s name, date of birth and principal residential address,

(ii) the date of the transfer and, if different, the date of the event triggering payability of the charge on the transfer,

(iii) the date on which the scheme manager accounted for the charge on the transfer,

(iv) why the charge on the transfer has become repayable, and

(v) the amount in respect of which the claim is made.”

Amendment 50, page 194, line 38, leave out “regulation 3AE(1) to (5)” and insert “regulations 3AE(1) to (5) and 3AEA”.

Amendment 51, page 195, line 3, at end insert

“, and

( ) are, so far as they insert new regulation 3AK, to be treated as having been made by the Commissioners under the powers to make regulations conferred by section 244M(8) of FA 2004.”

Amendment 52, page 196, line 28, leave out “potentially excluded” and insert “overseas”.

Amendment 53, page 196, line 32, at beginning insert

“either—

(i) the overseas transfer charge arises in the case of the transfer, or

(ii) ”

Amendment 54, page 196, line 4, at end insert—

‘(3) In a case where the 60 days mentioned in paragraph (2) ends with a day earlier than 30 June 2017, paragraph (2) is to be treated as requiring the information to be given no later than 30 June 2017.’

Amendment 55, page 198, line 41, after “Regulations,” insert—

“and the amendments in regulation 11BA of the Registered Pension Schemes (Provision of Information) Regulations 2006,”

Amendment 56, page 198, line 46, at end insert—

“if it would otherwise be considered for those purposes as charged in an earlier period.”—(Jane Ellison.)

Schedule 4, as amended, agreed to.

Schedules 5 and 6 disagreed to.

Schedule 7 agreed to.

Schedules 8 to 15 disagreed to.

Schedule 16