Two sets of regulations make provision for the Finance Act 2017 changes to overseas pension transfers.
Two sets of regulations make provision for the Finance Act 2017 changes to overseas pension transfers.
The Relevant Overseas Schemes (Transfer of Sums and Assets) Regulations, SI 2018/372, come into force on 6 April 2018 to provide for the situation where sums transferred from a registered pension scheme to a relevant overseas scheme are subsequently transferred to another relevant overseas scheme or a new registered pension scheme. The regulations ensure that such transfers would not be subject to unauthorised payments charges, by providing for the new scheme to be treated as though it were the original scheme. The regulations are being made to ensure that the new provisions on offshore pensions transfers introduced by Finance Act 2017 operate as intended.
The Pension Schemes (Application of UK Provisions to Relevant Non-UK Schemes) (Amendment) Regulations, SI 2018/373, set out how to calculate the ‘ring-fenced transfer funds’ (and associated ring-fenced taxable asset transfer funds), arising from transfers of UK pension savings to foreign pension schemes on or after 9 March 2017 and subject to the new overseas transfer charge introduced by Finance Act 2017. They also contain new provisions setting out the method by which payments made on or after 6 April 2017 out of tax-relieved funds may be applied to reduce these ring-fenced funds. The regulations come into force on 6 April 2018. HMRC consulted during November and December 2017 on a draft version.
Two sets of regulations make provision for the Finance Act 2017 changes to overseas pension transfers.
Two sets of regulations make provision for the Finance Act 2017 changes to overseas pension transfers.
The Relevant Overseas Schemes (Transfer of Sums and Assets) Regulations, SI 2018/372, come into force on 6 April 2018 to provide for the situation where sums transferred from a registered pension scheme to a relevant overseas scheme are subsequently transferred to another relevant overseas scheme or a new registered pension scheme. The regulations ensure that such transfers would not be subject to unauthorised payments charges, by providing for the new scheme to be treated as though it were the original scheme. The regulations are being made to ensure that the new provisions on offshore pensions transfers introduced by Finance Act 2017 operate as intended.
The Pension Schemes (Application of UK Provisions to Relevant Non-UK Schemes) (Amendment) Regulations, SI 2018/373, set out how to calculate the ‘ring-fenced transfer funds’ (and associated ring-fenced taxable asset transfer funds), arising from transfers of UK pension savings to foreign pension schemes on or after 9 March 2017 and subject to the new overseas transfer charge introduced by Finance Act 2017. They also contain new provisions setting out the method by which payments made on or after 6 April 2017 out of tax-relieved funds may be applied to reduce these ring-fenced funds. The regulations come into force on 6 April 2018. HMRC consulted during November and December 2017 on a draft version.
