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Draft Finance Bill 2012 and secondary legislation: pensions implications
Practical Law UK Legal Update 4-515-3528 (Approx. 3 pages)
Draft Finance Bill 2012 and secondary legislation: pensions implications
by PLC Pensions
| Published on 08 Dec 2011 • United Kingdom |
HM Treasury and HMRC have published draft clauses for the Finance Bill 2012 and draft secondary legislation, alongside tax policy updates. (Free access.)
On 6 December 2011, HM Treasury and HMRC published tax policy updates for 2012. The majority of proposed measures are for inclusion in the Finance Bill 2012 while some are to be enacted through regulations. The following two sets of draft regulations will be of interest to pensions practitioners:
- Small personal pension funds. The existing scheme-specific small lump sum commutation regime will be extended to personal pensions. Draft regulations propose to allow individuals aged 60 or over with pension pots of £2,000 or less to take a maximum of two authorised small lump sum payments in their lifetime. For more, see Legal update, Small lump sum commutation to be extended to personal pensions.
- QROPS. HMRC's powers to police transfers to qualifying recognised overseas pension schemes will be strengthened under draft regulations that will enhance its information-gathering powers and extend reporting obligations on UK transferor schemes and members. For more, see Legal update, New QROPS information and reporting requirements.Both sets of changes are planned to take effect on 6 April 2012.
In addition, anti-avoidance provisions regarding asset-backed pension contributions were revealed last week with the Autumn Statement, see Legal update, Asset-backed pension contributions: draft Finance Bill 2012 provisions.
For information about the other draft Finance Bill measures announced, see Legal update, Draft Finance Bill 2012 legislation: key business tax measures.