RPSM02104030 - Technical pages: Registering a pension scheme with HMRC: deferred annuity contracts (buyout policies, section 32 contracts and assigned policies): Pre-6 April 2006 deferred annuity contracts
Pre-6 April 2006 deferred annuity contracts
| [Schedule 36, para 1(1)(d)] |
HMRC will automatically treat a deferred annuity contract as a registered pension scheme from 6 April 2006, where
- the policy or contract existed at 5 April 2006 but benefits are not in payment at that date, and
- the funds originally came from one of the following
- an approved retirement benefits scheme (or "occupational pension scheme")
- a former approved superannuation fund (or "old code" scheme)
- a pension scheme treated by HMRC as a relevant statutory scheme immediately before 6 April 2006.
There is no need for any application to be made to obtain
registered status. The contract automatically becomes subject to
the tax regime for registered pension schemes from 6 April 2006.
How any changes are brought into effect is a matter between
insurance companies and policyholders, but the guidance at
RPSM02100070 about modifying rules
also applies to deferred annuity contracts.
Treating these contracts or policies as registered schemes
means that when the member takes any benefits there will be a
benefit crystallisation event. The funds being
taken at that time will be counted for the member's
lifetime allowance - as they would have been
counted for the member's lifetime allowance if they had remained in
the original pension scheme until coming into payment.
| Glossary ( RPSM20000000) |
