Table 3
| Column 1 | Column 2: reckonable date |
| Tax due under section 254 of the Act. | The due date under section 254(5) of the Act. |
| Tax assessed under case 1 or 2. | The day following the expiry of nine months from the end of the accounting period in which the unauthorised payment was made. |
| Tax assessed under case 3. | 31st January following the end of the tax year in which the relevant lump sum death benefit was paid. |
| Tax assessed under case 4. | 31st January following the end of the tax year in which the scheme sanction charge arose. |
| Tax assessed under case 5. | The due date under section 254(5) of the Act. |
| Tax assessed under case 6 or 7. | The date the tax was due before sections 272 or 273 of the Act applied in relation to the pension scheme. |
| Tax assessed under case 8. | 31st January following the end of the tax year in which the benefit within section 393 of ITEPA is received. |
(4) Paragraph (1) applies even if the reckonable date is a non-business day as defined by section 92 of the Bills of Exchange Act 1882[7].
(5) Any change made to the prescribed rate during the interest period applies to the unpaid amount from the date of the change.
The making of amended returns
6.If the scheme administrator becomes aware—
(a) that anything which ought to have been included in a return made under section 254 of the Act for any period has not been so included,
(b) that anything which ought not to have been included in a return made under section 254 of the Act for any period has been so included, or
(c) that any other error has occurred in a return made under section 254 of the Act for any period,
the scheme administrator must immediately make an amended return to an officer of Revenue and Customs for that period.
Adjustments, repayments and interest on tax overpaid
7.—(1) If the correct tax due under section 254 of the Act has not been paid on or before the due date or if an amended return is made under regulation 6, an officer of Revenue and Customs may make such adjustments or repayments as may be required for securing that the resulting liabilities to tax (including interest on unpaid or overpaid tax) whether of the scheme administrator or of any other person are the same as they would have been if the correct tax had been paid or if a correct return had been made.
(2) Tax overpaid which is repaid to the scheme administrator or any other person carries interest at the prescribed rate from the later of the due date and the date on which the tax was paid until the date of repayment ("the interest period").
(3) The "prescribed rate" means the rate applicable under section 178 of the Finance Act 1989 for the purposes of section 824 of the Income and Corporation Taxes Act 1988[8].
(4) Any change made to the prescribed rate during the interest period applies to the overpaid amount from the date of the change.
Modifications and application of TMA
8.—(1) Section 9(1A)[9] of TMA (tax not to be assessed by a self-assessment) applies with the following modifications in relation to an assessment to tax under case 3, 6 or 7.
(2) At the end of paragraph (a) delete "or".
(3) After paragraph (b) insert—
"(c) is chargeable on a person under section 217(2) of the Finance Act 2004 (liability to lifetime allowance charge by reason of the payment of a relevant lump sum death benefit),
(d) is chargeable on a person or persons under section 272 of the Finance Act 2004 (trustees etc. liable as scheme administrator), or
(e) is chargeable on a person or persons under section 273 of the Finance Act 2004 (members liable as scheme administrator).".
9.—(1) Section 29(1)(a)[10] of TMA (assessment where loss of tax discovered) applies with the following modification in relation to an assessment to tax under case 1, 2 or 3.
(2) After "any income" insert—
", unauthorised payments under section 208 of the Finance Act 2004 or surchargeable unauthorised payments under section 209 of that Act or relevant lump sum death benefit under section 217(2) of that Act".
10.—(1) Section 34(1)[11] of TMA (ordinary time limit of six years) applies with the following modifications in relation to an assessment to tax under case 8.
(2) For "income tax or" substitute "income tax,".
(3) After "capital gains tax" insert—
"or to tax chargeable under section 394(2) of the Income Tax (Earnings and Pensions) Act 2003".
11.—(1) Section 36(1)[12] of TMA (fraudulent or negligent conduct) applies with the following modifications in relation to an assessment to tax under case 8.
(2) For "income tax or" substitute "income tax,".
(3) After "capital gains tax" insert " or to tax chargeable under section 394(2) of the Income Tax (Earnings and Pensions) Act 2003".
12.In relation to any assessment under case 5—
(a) section 34 of TMA applies notwithstanding that the assessment may relate to a quarter or other period which is not a year of assessment, and
(b) for the purposes of section 36 of TMA any such assessment relates to the year of assessment in which the quarter or other period ends.
Modification of Schedule 18 to the Finance Act 1998
13.—(1) Schedule 18 to the Finance Act 1998[13] (company tax returns, assessments and related matters) applies with the following modification in relation to an assessment to tax under case 8.
(2) In paragraph 1 after "as if it was corporation tax" insert—
"but does not include any tax which is chargeable on the person who is (or persons who are) the responsible person in relation to an employer-financed retirement benefits scheme under section 394(2) of the Income Tax (Earnings and Pensions) Act 2003".
D. A. Hartnett
M. J. Eland
Two of the Commissioners for Her Majesty's Revenue and Customs
14th December 2005
EXPLANATORY NOTE
(This note is not part of the Regulations)
These Regulations make provisions in relation to the making of assessments and related matters in connection with charges to tax under Part 4 of the Finance Act 2004 (c. 12) ("the Act") in respect of pension schemes which are or have been registered under that Part of that Act.
Regulation 1 provides for citation and commencement.
Regulation 2 provides for interpretation.
Regulation 3 specifies the particulars required to be included in a return under section 254 in relation to certain types of charge.
Regulation 4 specifies the cases in which the Inland Revenue must issue an assessment.
Regulation 5 provides for interest on tax due under section 254 of the Act or assessed under these Regulations.
Regulation 6 provides for the scheme administrator to make an amended return in the event of an error in a return under section 254 of the Act.
Regulation 7 makes provisions in connection with adjustments, repayments and interest on tax overpaid.
Regulations 8 to 12 provide for the application with modifications of provisions of the Taxes Management Act 1970 (c. 9) ("TMA") in relation to certain assessments made under these Regulations.
Regulation 8 modifies section 9(1A) of TMA to exclude the self-assessment provisions in relation to tax assessed where a charge arises under section 217(2) (lifetime allowance charge on receipt of a lump sum death benefit), section 272 (trustees etc. liable as scheme administrator) or section 273 (members liable as scheme administrator) of the Act.
Regulation 9 modifies section 29(1)(a) of TMA to permit an assessment where a loss of tax is discovered in relation to an unauthorised payment under section 208, a surchargeable unauthorised payment under section 209 or a lifetime allowance charge under section 217(2) of the Act.
Regulation 10 modifies section 34(1) of TMA to apply the ordinary six year time limit to assessments in relation to a charge in respect of an employer-financed retirement benefits scheme under section 394(2) of the Income Tax (Earnings and Pensions) Act 2003 (c. 1) ("ITEPA").
Regulation 11 modifies section 36(1) of TMA to apply the extended time limit in cases of fraud or negligence to assessments in relation to a charge under section 394(2) of ITEPA.
Regulation 12 applies sections 34 and 36 of TMA to assessments under section 254 of the Act.
Regulation 13 modifies Schedule 18 to the Finance Act 1998 (c. 36) (company tax returns, assessments and related matters) to exclude the operation of that Schedule in relation to an assessment in respect of a charge under section 394(2) of ITEPA.
A regulatory impact assessment in respect of the provisions of Part 4 of the Finance Act 2004 and subordinate legislation under it was published by the Board of Inland Revenue on 8 April 2004, and is available on the Inland Revenue website at www.inlandrevenue.gov.uk/ria/simplifying-pensions.pdf or (for hard copies) by writing to the Ministerial Correspondence Unit, Capital and Savings 1st Floor Ferrers House, PO Box 38, Castle Meadow Road, Nottingham, NG2 1BB.
Notes:
[1]2004 c. 12. The functions of the Commissioners of Inland Revenue, including those under which this instrument is made, were transferred to the Commissioners for Her Majesty's Revenue and Customs by section 5 of the Commissioners for Revenue and Customs Act 2005 (c. 11).back[2]2003 c. 1.back
[3]1970 c. 9.back
[4]2003 c.1. Section 394(2) was amended by section 236(6) of the Finance Act 2004.back
[5]1989 c. 26, to which there are amendments not relevant to these Regulations.back
[6]Section 86 was substituted by section 110(1) of the Finance Act 1995 (c. 4) and amended by section 131 of, and paragraph 3 of Schedule 18 to, the Finance Act 1996 (c. 18).back
[7]1882 c. 61; section 92 was amended by sections 3(1) and 4(4) of the Banking and Financial Dealings Act 1971 (c. 80).back
[8]1988 c. 1. Section 824 was amended by paragraph 7 of Schedule 13 to the Finance Act 1988 (c. 4), sections 110(5), 111(4), 158(2) and 179(1) of, and Parts 4, 8 and 10 of Schedule 17 to, the Finance Act 1989 (c. 26), sub-paragraphs (1) and (52) of paragraph 14 of Schedule 10 to the Taxation of Chargeable Gains Act 1992 (c. 12), paragraph 41 of Schedule 19 to the Finance Act 1994 (c. 9), section 92(2), (3) and (4) of the Finance Act 1997 (c. 16), section 41(2) and (3) of the Finance Act 1999 (c. 16), and section 90(2) and (3) of the Finance Act 2001(c. 9).back
[9]Section 9(1A) was amended by section 722 of, and paragraphs 123 and 125 of Schedule 6 to, the Income Tax (Earnings and Pensions) Act 2003 and paragraph 1 of Schedule 35 to Finance Act 2004.back
[10]Section 29(1)(a) was substituted by sections 191 and 199 of the Finance Act 1994 (c. 9) and amended by paragraph 12 of Schedule 19 to the Finance Act 1998 (c. 36).back
[11]Section 34(1) was amended by paragraph 17 of Schedule 19 to the Finance Act 1998.back
[12]Section 36(1) was substituted by section 149(1) and (7) of the Finance Act 1989 (c. 26) and amended by paragraph 18 of Schedule 19 to the Finance Act 1998.back
[13]1998 c. 36, the amendment to paragraph 1 of Schedule 18 is not relevant to these Regulations.back
ISBN0 11 073817 9
-- Back --
