RPSM02100030 - Technical pages: Registering a pension scheme with HMRC: pension schemes which exist at 5 April 2006: Existing pension schemes at 5 April 2006 which opt out of registration under the tax regime from 6 April 2006

Existing pension schemes at 5 April 2006 which opt out of registration under the tax regime from 6 April 2006

A pension scheme which falls into any of the categories listed in the bullets at RPSM02100020 but which is not to be automatically registered under the tax regime from 6 April 2006 must formally opt out of the regime.

The relevant administrator of such a pension scheme must advise HMRC in writing before 6 April 2006 that the scheme is to opt out, otherwise it will be treated as registered under the new tax rules. There is no special form for advising HMRC that a scheme is to be treated as having opted out.

From 6 April 2006, the only way for an ongoing scheme to become unregistered is for HMRC to withdraw registration (de-register the scheme) - see RPSM02105000. If this happens, a 40% tax charge will apply, calculated in the same way as the tax charge in connection with opting out - see RPSM02100040. There may also be other tax consequences.