RPSM02304030 - Scheme Administrator Pages: Registering a pension scheme with HMRC: Which pension schemes automatically become registered pension schemes?: Deferred annuity contracts (including assigned policies) made on or after 6 April 2006

Deferred annuity contracts (including assigned policies) made on or after 6 April 2006

A deferred annuity contract or an assigned policy as described below falls within the definition of a registered pension scheme. Treating these policies or contracts as registered pension schemes means that when the member takes their benefits, there will be a benefit crystallisation event. The funds being taken at that time will be counted for the member's lifetime allowance - just as they would have been counted for the member's lifetime allowance had they remained in the original pension scheme.

Where a deferred annuity contract is made or a policy is assigned on or after 6 April 2006, it automatically becomes a registered pension scheme, where

• the funds are transferred to the contract, or the policy is assigned, on or after 6 April 2006,
• the funds came from a registered pension scheme, and
• the contract or assigned policy does not provide for the immediate payments of benefits.

The contract or policy automatically becomes a registered pension scheme from the date the contract is made or the policy is assigned. Because of this, these policies or contracts do not have to be formally registered with HMRC.

However, to be a registered pension scheme the policy or contract must have a scheme administrator who has made the declarations required by section 270 Finance Act 2004. So although you do not have to complete the entire registration application process online, you must make the required declarations, using Pension Schemes Online. This is a much lesser requirement than formally registering the scheme. For more guidance on how to make the required declarations, please see RPSM02306150. This declaration does not have to be made immediately. You need not make the declaration until you have to submit information to HMRC, e.g. when filing an Event Report (see RPSM12301010) or Accounting for Tax Return (see RPSM12301300).