(This archived guidance relates to HMRC discretionary
practice before the 6th April 2006. For current guidance on
Registered Pension Schemes see the Registered Pension Schemes
Manual)
The exceptions to freedom to transfer referred to in
PSI14.1.5 are as follows:
[PN10.24]
a. the prior written consent of IR SPSS must be obtained before
making any transfer payment of any kind to or from a small
self-administered scheme . However this requirement does not apply
where the transfer consists only of the transfer/assignment of a
death in service only term life insurance policy.
b. transfers are not permitted either way between personal
pension schemes and schemes seeking approval under Chapter I Part
XIV.
c. a personal pension scheme may not make a transfer to an
approved scheme or a relevant statutory scheme unless the
individual is already accruing benefits under the receiving scheme
as a result of service as an employee before the transfer payment
is made on his or her behalf.
d. a FSAVCS may only accept a transfer from another FSAVCS,
an approved personal pension scheme or a separate additional
voluntary contribution scheme of the employer (see part 14 of the
FSAVCs Guidance Notes, IR12 Supplement);
e. a buy-out contract (see Section 4 of Part 13 PSI13.4.1)
may only accept a transfer in the form of a single premium (see
PSI13.4.5) from an approved scheme or relevant statutory scheme at
the time of inception. A transfer may be made from a buy-out
contract to a new buy-out contract provided the conditions in
PSI13.4.6 and PSI17.1.13 are complied with;
f. a fund to which section 608 applies is a frozen scheme
which is entitled to certain exemptions provided that it accepts no
further contributions (see PSI7.1.18 and PSI8.3.10). It is not
permitted to accept transfers;
g. a retirement annuity contract is not permitted to accept
transfers except from another retirement annuity contract. It is,
however, acceptable to transfer from a retirement annuity contract
to an approved occupational pension scheme, an approved personal
pension scheme or a relevant statutory scheme;
h. a scheme seeking approval may never accept a transfer from
a personal pension scheme and may not accept a transfer value from
any other source unless, exceptionally, a genuine need to make such
a transfer can be demonstrated to the satisfaction of, and agreed
in writing by, IR SPSS. Subject to PSI 14.1.26, a scheme seeking
approval may make a transfer to an approved scheme, a relevant
statutory scheme or a buy-out contract.
i. the prior written authority of IR SPSS is needed for a
transfer that relates to a member whose main scheme benefits are
subject to income drawdown - see Appendix XII, paragraph A12.107.
j. none of the tax advantaged arrangements listed in
PSI14.1.5 can make transfers to, or accept transfers from a scheme
in a category other than those listed but see PSI14.1.26 and
Section 4 of this Part PSI14.4.1.
