Guidance

Pension schemes newsletter 74 - December 2015

Published 11 December 2015

1. Autumn Statement 2015

At the Autumn Statement on 25 November 2015, the government announced the following measures in connection with pensions:

a. Bridging pensions

Following the introduction of the new state pension from April 2016, legislation will be introduced in Finance Bill 2016 to allow the pension tax rules on bridging pensions to be aligned with Department for Work and Pensions legislation. We will be talking to industry representatives shortly about what the new state pension means for pension schemes and the bridging pensions they offer.

You can find more information about bridging pensions at Pensions tax: bridging pensions.

b. Dependants’ scheme pension

Legislation will be introduced in Finance Bill 2016 to simplify the test that takes place when a dependants’ scheme pension is payable.

You can find more information about Dependants’ Scheme Pensions at Dependants’ scheme pensions.

c. Lifetime allowance reduction

Legislation will be introduced in Finance Bill 2016 to reduce the standard lifetime allowance to £1 million for 2016 to 2017 onwards. In Pension schemes newsletter 73 - October 2015 we explained about the two protection regimes that will be available and the interim process to follow between April 2016 and the introduction of the new online self-service in July 2016. Section 3 below covers more operational detail.

You can find more information about the reduction in lifetime allowance at Reduction of pensions lifetime allowance.

d. Pensions tax reform

The Government are still considering responses to the consultation Strengthening the incentive to save: a consultation on pensions tax relief - Consultations. A response will be published at Budget 2016.

e. Secondary annuities

From April 2015 individuals have greater flexibility when they access their defined contribution pension savings, with no requirement to buy a pension annuity. The government wants to extend greater flexibility to individuals who bought a pension annuity before 6 April 2015 and intends removing existing pensions tax restrictions on individuals seeking to sell their right to future annuity income. Further details for this measure will be included in the governments response to the consultation, to be published in December.

Draft legislation with accompanying explanatory notes in connection with the bridging pensions, dependants’ scheme pensions and lifetime allowance reduction was published on 9 December here Finance Bill 2016.

If you have any comments regarding the above please send to pensions.policy@hmrc.gsi.gov.uk .

2. Relief at source – annual returns of individual information for 2014 to 2015

In Pension schemes newsletter 72 - September 2015 we reminded scheme administrators of pension schemes operating relief at source that the annual return of individual information (also known as the RPSCOM100(Z)) for the tax year 2014 to 2015 was due to be submitted to HM Revenue and Customs (HMRC) by 5 October 2015. We also explained why we needed this information and the consequences of failing to submit by the deadline.

There are still outstanding returns for both the 2013 to 2014 and 2014 to 2015 tax years.

Over the last year we have been working with scheme administrators to help them submit their 2013 to 2014 annual returns of individual information. We will continue to do this for outstanding 2013 to 2014 returns but will now extend this work to include submission of the outstanding 2014 to 2015 returns.

As we explained in Pension schemes newsletter 72 - September 2015, we are carrying out this work in readiness for the introduction of the Scottish rate of Income Tax. It will be essential that the data submitted on the annual return of individual information is made on time and is accurate so that we can identify Scottish taxpayers and tell you the correct rate of tax to apply to your scheme members in advance of the next tax year.

We will give scheme administrators three opportunities to submit the 2014 to 2015 annual return successfully and if failure occurs on the third submission we will stop all future interim repayments until a further re-submission is received and deemed successful.

So that we can continue to help scheme administrators successfully submit their annual return of individual information please give us up to date contact details. You can email these to: pensions.businessdelivery@hmrc.gsi.gov.uk and put ‘relief at source - SRIT’ in the subject line of your email.

3. Lifetime allowance reduction

a. Lifetime allowance reduction – messages to members

In previous pension schemes newsletters we explained that from 6 April 2016 the lifetime allowance will reduce to £1 million and that scheme members may need to protect their pension savings from the lifetime allowance tax charge.

We are continuing to raise awareness of the reduction in lifetime allowance and the steps that scheme members will need to take to protect their pension savings from a lifetime allowance tax charge. In Pension schemes newsletter 71 - August 2015 we asked you to consider what communications you need to remind your members that they may be affected.

To help reach affected scheme members we have produced three messages, included in this newsletter as appendix 1 and we are happy for you to use the wording in any of these in your literature or on your websites as appropriate.

If you have any questions about this you can email pensions.businessdelivery@hmrc.gsi.gov.uk and put ‘reduction of the lifetime allowance’ in the subject line of your email.

b. Lifetime allowance reduction - interim process for applying for individual protection 2016 and fixed protection 2016

In Pension schemes newsletter 73 - October 2015 we explained that from July 2016 we are introducing a new online self-service for pension scheme members to apply for individual protection 2016 (IP2016) or fixed protection 2016 (FP2016).

However because the new online self-service will not be available until July 2016 there will be a period between 6 April 2016 until the new online service goes live, when pension scheme members may wish to take benefits and rely on either IP2016 or FP2016 but can’t apply for these protections online.

To help these scheme members protect their pension savings, we are introducing an interim process for them to make a temporary application for IP2016 or FP2016 so that they can initially rely on these protections when they take benefits from their scheme(s). Once the new online system goes live in July 2016 these members will need to make a full online application so that their pension savings can continue to be protected against the lifetime allowance tax charge.

The interim process requires scheme members to contact HMRC in writing with details of their intention to rely on either IP2016 or FP2016.

IP2016

For IP2016 the scheme member will need to provide us with

• details of their relevant amount
• a breakdown of their relevant amount (as at 5 April 2016) consisting of

Amount A: Pre A Day Pensions in Payment (£)
Amount B: Post A Day BCE’s (£))
Amount C: Uncrystallised Rights (£))
Amount D: Non UK Rights (£))

• a declaration that they do not hold primary protection
• a declaration that they do not hold individual protection 2014 (IP2014)

FP2016

For FP2016 the scheme member will need to provide us with

• a declaration that they do not hold primary protection
• a declaration that they do not hold enhanced protection
• a declaration that they do not hold fixed protection
• a declaration that they do not hold fixed protection 2014

For both IP2016 and FP2016 we will check our records against the details the scheme member provides to ensure that the declarations are correct. If no other valid protection is held (that precludes the member from holding FP2016 or IP2016) we will write to the scheme member with a temporary reference number to provide to their pension scheme administrator.

The temporary reference number that we provide to the scheme member will only be valid until 31 July 2016. Scheme members who take benefits and rely on this interim process to protect their pension savings temporarily must make a full online application to ensure their pension savings continue to be protected from the lifetime allowance tax charge. When they make a full online application they will receive a permanent reference number to provide to pension scheme administrators. Scheme administrators will not be able to use the temporary reference number in any reporting to HMRC and must wait until a permanent reference number is provided by the scheme member.

If the scheme member fails to make a full online application, their application for IP2016 or FP2016 made under the interim process will not be valid and they will be liable to a lifetime allowance tax charge on their pension savings above the lifetime allowance.

We will provide further guidance on the interim process in due course, including details of the format of both the temporary and permanent reference numbers.

If you have any questions on this, please email pensions.businessdelivery@hmrc.gsi.gov.uk and put ‘reduction of lifetime allowance’ – in the subject line of your email.

4. Double Taxation/Certificate of Residence requests

Following feedback we’ve had about the Double Taxation/Certificate of Residence process for pension schemes, we have introduced a new digital service.

From 2 November 2015 as well as sending us paper APSS146C, D and E forms as an alternative you can now send these completed forms to us electronically and we will then send the required certificates back to you in electronic pdf format. Using this digital service will mean it takes less time for you to get your Certificate of Residence.

Alternatively, you can send bulk applications to us by spreadsheet. For our sample spreadsheet that sets out all required information and format and for more information on either of these options you can email us at Pensionschemes.doubletaxation@hmrc.gsi.gov.uk.

In line with HMRC’s digital strategy, we will no longer sign the certificates we issue.

We do not expect any problems with this revised procedure because other HMRC Departments have been issuing certificates without signatures for a long time, and these have been accepted by Overseas Tax Authorities. However if you do have any problems with the new certificates, please contact us at the above mailbox and we can send you a letter you can forward to the relevant tax authority if there are any issues.

5. Pension flexibility

a. Pension flexibility – trustees in bankruptcy

We have received a number of questions about how pension flexibility payments made to trustees in bankruptcy are taxed and reported.

Recipient is a non-individual

Where such payments are made to third parties or a non-individual, such as a

• personal representative
• trustee in bankruptcy
• body corporate

you must submit the following information under RTI

• operate code BR
• leave the National Insurance number field blank
• enter ‘male’ as the gender
• enter ‘RP’ as the forename
• enter the name of the recipient body as the surname
• enter the address of the recipient body
• indicate ‘Yes’ in the payment to a non-individual indicator field
• do not enter a start date for the new recipient

Pension scheme administrators can find more detailed PAYE information on Real Time Information (RTI) reporting for registered pension schemes in the CWG2: Employer Further Guide to PAYE and National Insurance Contributions.

We will update this to include information on trustees in bankruptcy in due course.

In the meantime if you have any further questions please email pensions.businessdelivery@hmrc.gsi.gov.uk and put ‘Pension flexibility’ in the subject line of your email.

b. Reporting and quantifying flexi-access and death benefit payments on RTI

In Pension schemes newsletter 72 - September 2015 we provided details of new RTI data items being introduced from 6 April 2016, to enable you to report and quantify pension death benefit payments and flexibly accessed pension payments (data item 168). We also provided details of pension death benefit payments we require you to report under RTI from April 2016.

We have been asked to provide further clarification of what payments scheme administrators should report and how they should be reported on RTI. If you are reporting pension flexibility payments from 6 April 2016 you will need to take the following data items into consideration.

Number	Data Item
33	Indicator that an occupational pension is being paid because they are a recently bereaved spouse or civil partner
34	The annual amount of occupational pension
38	Payroll ID
40A	Irregular employment payment pattern indicator
41A	Taxable pay to date
41B	Total tax to date
42	Pay frequency*
43	Payment date
44	Tax week number
45	Tax month number
55	Tax code operated on the payment
56	If the tax code basis is non-cumulative
58	Taxable pay in this period
58A	Value of payments not subject to tax or NICs
154	Late reporting reason
168	Flexibly accessing pension rights (becomes mandatory from 6 April 2016)
171	Pension Death Benefit
173	Taxable payment
174	Non-taxable payment

You can find a full list of all RTI data items for 2016 to 2017 here.

*Regarding pay frequencies, for a single uncrystallised funds pensions lump sum (UFPLS) that extinguishes the pot you should use data item 42 IO. For an irregular payment you should use data item 40A and 42 IR.

You will need to use data item 171 to report all death benefit payments listed in section 9.2 of Pension schemes newsletter 72 - September 2015.

If you are reporting payments under data items 168 or 171, you will need to report the taxable element under data item 173 and the non-taxable element under data item 174. Please note, data items 173 and 174 have been amended to show that they relate to data items 168 and 171.

If you are reporting a payment under data item 171 that is entirely non-taxable, you must enter 0T in data item 55. You must also enter Y in data item 56. Without an entry under these data items, you will be unable to submit your Full Payment Submission (FPS).

All lump sum death benefits are reportable under RTI from April 2016 with the exception of:

• uncrystallised funds lump sum death benefits paid on death of member before age 75 and paid within 2 years of notification of death
• defined benefits lump sum death benefits (DBLSDB) on death of member before aged 75

Please note if a member dies before aged 75 and payment of the DBLSDB is not paid within two years of notification of death, the payment is not a DBLSDB and is deemed to be an unauthorised member payment. Unauthorised member payments are not reportable under RTI.

c. Payment and reporting errors

We have received a number of enquiries from scheme administrators regarding pension flexibility payment reporting errors on RTI. If you think you have made errors either in making these payments to members of your scheme or reporting these payments through RTI that have tax consequences, please do not amend your RTI FPS submission straight away.

Instead please let us have details and we will advise you on the next steps that you will need to take. You should email: pensions.businessdelivery@hmrc.gsi.gov.uk and put ‘Payment and reporting errors’ in the subject line of your email.

d. Pension flexibility statistics

As announced in Pension schemes newsletter 73 - October 2015, on 28 October 2015 we published the first quarterly release of official statistics on flexible payments from pensions. You can find these at Flexible payments from pensions - Publications.

Further to this announcement we can now provide more information on the number of tax repayment claim forms (P55, P53Z and P50Z) processed in respect of pension flexibility payments.

From 6 April to 30 June 2015 we processed:

P55 = 1,666 forms

P53Z = 1,542 forms

P50Z = 197 forms

Total Value Repaid: £9,727,296

From 1 July to 30 September 2015 we processed:

P55 = 4,016 forms

P53Z = 7,320 forms

P50Z = 1,394 forms

Total Value Repaid: £34,175,132

Figures for the period 1 October to 31 December 2015 will be published in January 2016.

6. Form APSS146 and reclaiming tax deducted from investment income

We have seen an increase in pension scheme administrators and trustees submitting APSS146s alongside the SA970 when they don’t need to.

This is a reminder that you only need to send in an APSS146 if:

• you haven’t previously submitted an APSS146 for that pension scheme
• the scheme’s assets owner has changed - for example if there’s been a change in the scheme’s trustees
• you want to change the scheme’s bank account details
• the person sending in the repayment claims is changing

You can find more information on how to make a tax repayment claim at Pension trustees: reclaim tax deducted from investment income.

7. Publication of the Pensions Tax Manual on GOV.UK

On 8 December 2015, we published the revised Pensions Tax Manual (PTM) on GOV.UK. You can find the PTM here Pensions Tax Manual - HMRC internal manual.

Earlier in the year we published the PTM in draft for comment. Following a review of the comments received during the consultation period, we have made changes to the PTM. This revised version of the PTM, published on GOV.UK on 8 December 2015, also reflects changes to tax legislation introduced by Finance Act 2015. However you should note that the PTM does not currently contain guidance on the changes made by Finance (No 2) Act 2015. We will include these changes in a future update.

As this is the first time the PTM has been published directly on the GOV.UK website, it does not indicate where the PTM pages have been updated since we published the draft version earlier in the year. To help you to identify the main changes, we have included them in a table as Appendix 2. We have not included formatting, typographical or page link errors in this list. (Please note – at the time of publishing this newsletter, we are aware of some formatting problems in the manual and are working to resolve them).

The PTM replaces the Registered Pension Schemes Manual (RPSM) as our internal guidance manual on registered pension schemes. We will shortly archive the RPSM and this will only be available only on the National Archives website.

We are grateful to all those who contacted us with their comments and suggestions during the consultation, and for your patience during the time it took for us to move the manual from the HMRC website to GOV.UK.

Now that the PTM is published on GOV.UK the ‘search this manual’ facility is available again.

You can send any further feedback on the PTM to ptm.consultation@hmrc.gsi.gov.uk

8. Annual allowance reporting regulations

We have received a number of queries about new reporting requirements for 2015 to 2016. Please note we will publish draft annual allowance reporting regulations, with a short period of consultation, on GOV.UK early in the new year.

9. Appendix 1

Scheme members

If your pension savings are worth more than £1 million you may need to protect your pension savings from the lifetime allowance tax charge.

What is the lifetime allowance?

The lifetime allowance is the amount of savings you can take from your pension schemes without facing a tax charge.

The lifetime allowance is currently £1.25 million but is reducing to £1 million from 6 April 2016.

From 6 April 2016 if you take more than £1 million from your combined pension savings, you may face a tax charge.

How much is the lifetime allowance tax charge?

The lifetime allowance tax charge is

• 55% of any amount you take from your pension savings as a lump sum that is over the lifetime allowance
• 25% of any amount you take from your pension savings as pension income that is over the lifetime allowance

Do you know the value of your combined pension funds?

The lifetime allowance applies to the value of your combined UK registered pension schemes and some overseas schemes. Your pension scheme administrator(s) may already send you information that will help you to find out the value of your combined pension savings. If not you should contact your pension scheme administrator(s) for more information.

This information will help you if you need to apply to protect your pension savings from the lifetime allowance tax charge.

Do I need to do anything now?

If you are agreeing salary and pension contribution levels with your employer for next year, increases in contributions to your pension schemes based on higher earnings may mean you exceed the lifetime allowance.

You may need to act to protect yourself from a tax charge even if you are not yet nearing retirement.

If you have existing protection but know that you may lose this you may also need to consider whether to apply for the new protections.

What do I need to do to protect my pension savings?

From April 2016 you will be able to apply to HMRC for one of two new protections when the lifetime allowance is reduced. These will be known as fixed protection 2016 and individual protection 2016.

You will be able to apply for these new protections by using a new on-line self-service system which will be available from July 2016. The new self-service system is still being developed and we will provide you with more information on this in due course.

You can find more information about the reduction of the lifetime allowance in Pension Schemes Newsletters 72 and 73.

Pension schemes newsletter 72 - September 2015

Pension schemes newsletter 73 – October 2015

Your pension savings may already be protected

The lifetime allowance was introduced in 2006 and was reduced in 2012 and again in 2014.

Each time the lifetime allowance reduced, people who had already planned their pension savings on the basis of the higher lifetime allowance could protect their pension savings by applying to HMRC and should have received a certificate to confirm their protection.

However you may still be subject to the lifetime allowance charge if you lose this protection.

You can still apply for protection from the 2014 reduction in lifetime allowance until 5 April 2017. You can find more information about how to do this along with other information about the existing protections and when these may be lost at Tax on your private pension contributions.

Scheme Administrators

The lifetime allowance for pension savings will be reduced from £1.25 million to £1 million from 6 April 2016. As you know members of a registered pension scheme have a single lifetime allowance in relation to the value of tax-privileged benefits they can draw from their pension schemes over a lifetime. Any benefits paid out from registered pension schemes in excess of a member’s lifetime allowance are subject to a tax charge known as the lifetime allowance charge. The tax charge is 55% of any amount over the lifetime allowance taken as a lump sum and 25% of any amount taken as pension income that is over the lifetime allowance.

The pension tax rules set out when a pension scheme administrator must check whether the pension benefits arising exceed the member’s available lifetime allowance, usually when the member starts to draw a pension. However members need to be aware that decisions they make now may mean that they exceed their lifetime allowance and be subject to a tax charge in future.

Feedback from the pensions industry indicates that affected members are making decisions now and agreeing salaries and the level of pension savings for both their own and their employer contributions for 2016 to 2017. These decisions, may result in a lifetime allowance tax charge if members are not aware of the lifetime allowance reduction so we are asking you to make your members aware of the change.

Please let your members know that lifetime allowance protection regimes will be available to protect their pension savings when the lifetime allowance reduces to £1 million from 6 April 2016. There will be two new protection regimes, known as fixed protection 2016 and individual protection 2016 and these will have similar conditions to fixed protection 2014 and individual protection 2014.

Your members will be able to apply for fixed protection 2016 and individual protection 2016 by using a new on-line self-service system which will be available from July 2016. The new self-service system is still being developed and we will provide you with more information on this in due course. We are also introducing an online service for scheme administrators to check the protection status of their scheme members and again we will provide more information on this in due course.

Independent Financial Advisers

The lifetime allowance for pension savings will be reduced from £1.25 million to £1 million from 6 April 2016. As you may be aware members of a registered pension scheme have a single lifetime allowance in relation to the value of tax-privileged benefits they can draw from their pension schemes over a lifetime. Any benefits paid out from registered pension schemes in excess of a member’s lifetime allowance are subject to a tax charge known as the lifetime allowance charge. The tax charge is 55% of any amount over the lifetime allowance taken as a lump sum and 25% of any amount taken as pension income that is over the lifetime allowance.

Feedback from the pensions industry indicates that affected members are making decisions now and agreeing salaries and the level of pension savings for both their own and their employer contributions for 2016 to 2017. These decisions, may result in a lifetime allowance tax charge if members are not aware of the lifetime allowance reduction and we are asking you to remind your clients of the change.

Please let your clients know that lifetime allowance protection regimes will be available to protect their pension savings when the lifetime allowance reduces to £1 million from 6 April 2016. There will be two new protection regimes, known as fixed protection 2016 and individual protection 2016 and these will have similar conditions to fixed protection 2014 and individual protection 2014.

Your clients will be able to apply for fixed protection 2016 and individual protection 2016 by using a new on-line self-service system which will be available from July 2016. The new self-service system is still being developed and we will provide you with more information on this in due course.

10. Appendix 2

PTM Update: 8 December 2015

PTM Page number	What has changed
PTM023300	A sentence has been added under the sub-heading ‘Defined benefits arrangements’ to explain when a death benefits promise is a cash balance benefit and not a defined benefit.
PTM024600	A new paragraph is included to explain that uncrystallised funds pension lump sums, trivial commutation lump sums, winding-up lump sums and small pots lump sums are taxed (at least in part) as pension income.
PTM025400	A further paragraph is included to clarify the circumstances in which an individual is a pension scheme member when they are receiving a pension paid under an annuity contract.
PTM041000	The text has been changed to make it clear that the payment needs to be received by scheme administrator.
PTM044100	Text has been added to clarify that compensation that qualifies as a relievable pension contribution would lead to loss of Fixed Protection and Fixed Protection 2014 as well as Enhanced Protection.
PTM044210	The content on this page relating to refunds of contributions has been removed and included instead in PTM045000.
PTM045000	This page now includes text formerly in PTM044210. The text has been substantially rewritten to add content and remove repetition.
PTM061100	The paragraph above the final bullet list on the page has been refined so that a serious ill-health lump sum is not misread as having to extinguish all arrangements under the scheme.
PTM061200	Under ‘Operating PAYE on the lump sum payment’, a link to Pensions Newsletters is provided for an explanation of how to operate PAYE for an uncrystallised funds pension lump sum.
PTM061300	The text of the final sub-heading on the page has been corrected to refer to BCE 5D.
PTM062210	Some changes have been made to the text to clarify meaning and avoid repetition.
PTM062400	Guidance amended to incorporate the change in tax treatment of a guaranteed lifetime annuity, reflecting paragraph 17(1) Schedule 4 Finance Act 2015.
PTM062400, PTM063240, PTM133200, PTM133300, PTM133400	References to nominees’ and successors’ annuities have been added, following legislative change in Finance Act 2015.
PTM062550	In the ‘Example’ featuring Luke, the figure of £41,100 is amended to £42,300.
PTM063110, PTM063120, PTM063140	Links to archived guidance have been added, for the rare circumstances when this guidance may be needed.
PTM063130	The final paragraph under the sub-heading ‘What is a trivial lump sum?’ has been moved to above the Example. In the section relating to partial transfers, the guidance is expanded to explain the effect of the formula more completely.
PTM063130	The meaning of CSLA for ALSA is amended to refer to the current standard lifetime allowance because (see Glossary) references in PTM to standard lifetime allowance include those protected lifetime allowances which replace the standard lifetime allowance for the purposes of Part 4 Finance Act 2004 i.e. those for Fixed Protection, Fixed Protection 2014 and Individual Protection 2014.
PTM063130, PTM063500, PTM063600, PTM063700	Consistent drafting of the requirement for identifiable beneficiary’s rights to be extinguished with the member’s rights.
PTM063260	The guidance under the second heading on the page has been removed and now forms a new page PTM063270. The title of page PTM063260 has been changed accordingly.
PTM063270	A new page has been created to contain the existing guidance for PCLS paid after member’s death, content moved from PTM063260.
PTM063400	Guidance clarified in relation to the presence of potential dependants’ benefits in the context of serious ill-health lump sums.
PTM071000	The guidance has been updated to reflect the introduction of a beneficiary’s annuity and BCE 5D introduced in Finance Act 2015. The relevant section on the page now correctly refers to ‘relevant unused uncrystallised funds’.
PTM072200	The relevant sections on this page have been re-written to include nominees’ annuity and successors’ annuity, and to explain the new tax treatment, following legislative changes in Finance Act 2015.
PTM072410	Guidance amended to clarify that beneficiary’s drawdown can be used to purchase a beneficiary’s annuity.
PTM072420	The ‘Taxation’ section now covers the change in tax treatment for a beneficiary’s short-term annuity introduced in Finance Act 2015.
PTM072430	The text is amended to clarify that a member’s death may be before 6 April 2015 and that beneficiary’s drawdown can be used to purchase a beneficiary’s annuity. The relevant section now correctly refers to ‘relevant unused uncrystallised funds’.
PTM072440, PTM072450	The tax treatment of dependant’s flexi-access drawdown pensions is clarified.
PTM073100, PTM073200, PTM073300, PTM073400, PTM073500, PTM073700	The guidance is amended as a clarification that age restrictions are removed for deaths on or after 6 April 2011.
PTM081000	Under the sub-heading ‘Becoming entitled’, the entitlement conditions for income withdrawal are included.
PTM087000, PTM088100, PTM088200, PTM088300, PTM088400, PTM088500, PTM088640, PTM088660, PTM088680	The guidance on these pages now covers new BCE 5D and nominees’ and successors’ annuities, following legislative changes in Finance Act 2015.
PTM088300	The guidance about pre-commencement drawdown pensions is amended, to reflect that the value taken into account is 80% of the maximum annual amount of pension in all cases.
PTM088620	An example relating to a scheme pension from a money purchase arrangement is included.
PTM093600	The definition of “relevant percentage” now covers the provisions in paragraph 14(3)(b) & 14(14B) Schedule 18 Finance Act 2011 and paragraph 1(15) Schedule 22 Finance Act 2013.
PTM094100	There is a correction to the guidance on the value of rights needed on 5 April 2014 to be eligible for IP 2014, the ‘relevant amount’ and when IP 2014 would cease to apply to an individual should there be an increase in the standard lifetime allowance.
PTM095200	The text under the heading ‘Calculating a pension credit factor’ is updated to cover that the standard lifetime allowance is £1.5m between 6 April 2012 and 5 April 2014, see section 218(5BA) Finance Act 2004.
PTM098000	Guidance is added on the exercise of HMRC’s general power of discretion in cases of late notifications for lifetime allowance protection. The existing guidance on deadlines and appeal rights is clarified.
PTM109000	The guidance now reflects the provisions of regulations 17B and 17C of SI 2006/567.
PTM112400	This guidance is amended to incorporate text from Newsletter 71.
PTM156000	Under the sub-heading ‘Liabilities not transferred to the independent trustee’, text is added to clarify when an independent trustee will inherit the outstanding scheme administrator liabilities.
PTM165100, PTM165200, PTM165300	The information requirements are extended due to the introduction of BCE 5D in Finance Act 2015.