A transfer from a
registered pension scheme to a deferred annuity
contract (section 32 contract or buyout policy) is a
recognised transfer. This is because the deferred
annuity contract is automatically treated as a registered pension
scheme under the tax legislation, from the day on which the
contract or policy is made. So the transfer is being made between
registered pension schemes.
Because it is a recognised transfer, it is not an
unauthorised payment, so you are not liable to any tax charges on
making the transfer.
If a
member of your scheme requests a transfer to a
deferred annuity policy, there are no HMRC requirements in relation
to the transfer. You may make the transfer in accordance with your
scheme rules, and you are not subject to any tax charges or
reporting requirements.
For an explanation of what a deferred annuity contract is,
see
RPSM02104000.
| Glossary ( RPSM20000000) |
