The Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) (No 2) Regulations, SI 2023/912, make further technical changes to the pensions tax rules as a result of the public service pensions remedy.
The regulations are designed to achieve the following:
ensure that individuals who would be less favourably treated for tax purposes as a result of the pension schemes remedy are not disadvantaged - the basic principle is that individuals should be put in the tax position they would have been in if the discrimination had not happened;
provide for the correct tax treatment of scheme payments including lump sums, for example where the rules at the time would prevent increased payments under the remedy from being paid; and
update existing powers and penalties provisions to allow for streamlined reporting of pensions information by taxpayers, and assessment or repayment of tax by HMRC.
The principal reason for these (and previous pensions remedy regulations) is to make sure that the tax rules are able to apply correctly to retrospective pensions rules changes resulting from the remedy.
HMRC had previously issued guidance based on a draft version of these regulations.
The Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) (No 2) Regulations, SI 2023/912, make further technical changes to the pensions tax rules as a result of the public service pensions remedy.
The regulations are designed to achieve the following:
ensure that individuals who would be less favourably treated for tax purposes as a result of the pension schemes remedy are not disadvantaged - the basic principle is that individuals should be put in the tax position they would have been in if the discrimination had not happened;
provide for the correct tax treatment of scheme payments including lump sums, for example where the rules at the time would prevent increased payments under the remedy from being paid; and
update existing powers and penalties provisions to allow for streamlined reporting of pensions information by taxpayers, and assessment or repayment of tax by HMRC.
The principal reason for these (and previous pensions remedy regulations) is to make sure that the tax rules are able to apply correctly to retrospective pensions rules changes resulting from the remedy.
HMRC had previously issued guidance based on a draft version of these regulations.
