Policy paper

The Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) (No. 2) Regulations 2023

A technical consultation on draft tax regulations which set out changes to how pensions tax rules will apply as a result of the public service pensions remedy.

From:
HM Revenue & Customs
Published
22 May 2023
Last updated
26 June 2023 — See all updates

Documents

Draft legislation: The Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) (No. 2) Regulations 2023

MS Word Document, 66 KB

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Draft legislation: The Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) (No. 2) Regulations 2023 (accessible version)

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Guidance on the Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) (No. 2) Regulations 2023

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Details

We are looking for views on the proposed regulations, which make further tax changes to the tax framework as a result of the public service pensions remedy.

These changes will impact pension scheme administrators and members of public service pension schemes affected by the remedy.

Tax regulations in relation to the remedy took effect from 6 April 2023.

These draft regulations give pension scheme administrators details of additional tax changes they will need to consider as a result of the remedy.

They also give pension scheme members details of approaches to any annual allowance, lifetime allowance or unauthorised payments tax charges they may have during the tax year 2019 to 2020, to the tax year 2022 to 2023.

This consultation closes at 11:59pm on 19 June 2023.

Consultation description

This technical consultation seeks views on these draft regulations. These regulations set out changes to how the pensions tax rules will apply to pension scheme administrators and members of public service pension schemes, as a result of the public service pensions remedy.

These regulations will make changes to how tax legislation on pensions operates in certain circumstances.

They will :

  • make sure that schemes can pay pension benefits as authorised payments
  • change how schemes work out pension input amounts in relation to:
    • voluntary pension contributions
    • pension credits and debits connected to a pension-sharing order on divorce
    • rights transferred from partnership pension accounts

They will also apply changes to how individuals are treated for tax purposes, if they were (or are, as a result of the remedy) subject to any of the following charges during the tax year 2019 to 2020, to the tax year 2022 to 2023:

  • annual allowance charges
  • lifetime allowance charges
  • unauthorised payments charges
  • unauthorised payments surcharges

How to respond to this consultation

If you identify any issues for individuals or pension schemes in operating the changes set out in the draft regulations, Email: policypensions@hmrc.gov.uk by 11.59pm on 19 June 2023.

Published 22 May 2023
Last updated 26 June 2023 + show all updates

  1. Guidance on the Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) (No. 2) Regulations 2023 has been added.

  2. First published.