RPSM02305010 - Scheme Administrator Pages: Registering a pension scheme with HMRC: opting out of automatic registration: The pension scheme is approved before 6 April 2006, but I want to opt out of automatic registration. How do I do this?

The pension scheme is approved before 6 April 2006, but I want to opt out of automatic registration. How do I do this?

The relevant administrator (as defined under paragraph 2(6) of Schedule 36 Finance Act 2004 - basically the administrator under the legislation in force before 6 April 2006 - see RPSM02302010) must inform HMRC in writing that the scheme is not to automatically become a registered pension scheme on 6 April 2006.

There is no special form for this, but HMRC must receive the notification by 5 April 2006 at the latest, otherwise the scheme will have automatically become registered on 6 April 2006.

Once you have informed HMRC in writing of the decision to opt out, you will not be able to reverse that opt-out. But should there be a change of mind, you can make an application to register the scheme at any time from 6 April 2006 onwards, and it will become subject to the tax regime for registered pension schemes.

The relevant administrator is liable for a tax charge on opting out of the tax regime (see RPSM02305020).

On receiving notice in writing that the scheme is to opt out of the tax regime for registered pension schemes, HMRC will

• send an acknowledgement to the relevant administrator
• ask the relevant administrator to calculate the value of the funds held for the purpose of the scheme at 5 April 2006 and let HMRC have these details within 30 days after 5 April 2006.

If you do not receive an acknowledgement within 15 working days of your written notice of opting out, please contact HMRC using the Pension Schemes Services (PSS) Helpline telephone number - 0845 600 2622.