PTM160400 - Information and administration: essential principles: scheme member information requirements
Glossary | PTM00001
In addition to the normal requirement for all taxpayers to report liability to unpaid tax to HMRC scheme members have the following obligations in respect of pension schemes.
Telling the scheme administrator that the member has enhanced allowances protection
Requirement to tell HMRC about relevant benefit accrual
Requirement to tell HMRC about loss of fixed protection, fixed protection 2014 or fixed protection 2016
Member with individual protection 2014 or 2016 to tell HMRC about a pension debit
Requirement to preserve records in respect of enhanced allowances protection
Transferring to a qualifying recognised overseas pension scheme (QROPS)
Notify change of country of residence after a transfer to a QROPS
Member to provide the scheme administrator with their National Insurance number
Recycling of lump sums
Telling the scheme administrator that the member has enhanced allowances protection
Regulation 11 The Registered Pension Schemes (Provision of Information) Regulations 2006 - SI 2006/567
A member who has a form of allowance protection and who wants to use that protection to protect their lump sum death benefit allowance and their lump sum allowance must tell their scheme administrator about their allowance protection. PTM164200 provides guidance about this member requirement.
Requirement to tell HMRC about relevant benefit accrual
Section 263 Finance Act 2004
If a member with enhanced protection loses that protection due to relevant benefit accrual the member must tell HMRC about this. Guidance on when relevant benefit accrual occurs starts at PTM176330.
If the member fails to tell HMRC that they have lost enhanced protection due to relevant benefit accrual within 90 days of losing protection they can be liable to a penalty of up to £3,000.
Requirement to tell HMRC about loss of fixed protection, fixed protection 2014 or fixed protection 2016
Regulation 9 The Registered Pension Schemes (Enhanced Allowances Transitional Protection) Regulations 2011 - SI 2011/1752
Regulation 9 The Registered Pension Schemes and Relieved Non-UK Pension Schemes (Enhanced Allowances Transitional Protection) (Notification) Regulations 2013 - SI 2013/1741
Paragraphs 17 and 20 Schedule 4 Finance Act 2016
If a member loses fixed protection they must tell HMRC about this within 90 days of the date of the event triggering loss of protection
If a member loses fixed protection 2014 or 2016 they must tell HMRC about this within 90 days of the date they could first reasonably be aware of the event triggering loss of protection.
If the member fails to do this penalties are due under section 98 Taxes Management Act 1970- see PTM160800.
Member with individual protection 2014 or 2016 to tell HMRC about a pension debit
Regulation 9 The Registered Pension Schemes and Relieved Non-UK Pension Schemes (Enhanced Allowances Transitional Protection) (Individual Protection 2014 Notification) Regulations 2014 - SI 2014/1842
Paragraphs 18 and 20 Schedule 4 Finance Act 2016
If a member within individual protection 2014 or individual protection 2016 has a pension debit as a result of a pension sharing order they must within 60 days beginning with the date of the pension debit give the following information to HMRC:
- the date of the pension debit
- the appropriate amount of the pension debit, and
- (if relevant) the net appropriate amount of the pension debit.
If the member fails to do this penalties are due under section 98 Taxes Management Act 1970 - see PTM160800.
Requirement to preserve records in respect of lifetime allowance protection
A member with enhanced allowances protection is required to preserve documents relating to that protection. The rules on preserving documents vary depending on the form of protection. PTM160200provides guidance on the rules for preserving documents and records.
Transferring to a qualifying recognised overseas pension scheme (QROPS)
Regulation 11BA The Registered Pension Schemes (Provision of Information) Regulations 2006 - SI 2006/567
Before a scheme administrator makes a transfer from a registered pension scheme to a QROPS they should get certain information from the scheme member. The member is also required to provide a declaration to the scheme administrator about the transfer - see PTM102900.
Regulation 3AE The Pension Schemes (Information Requirements for Qualifying Overseas Pension Schemes, Qualifying Recognised Overseas Pension Schemes and Corresponding Relief) Regulations 2006 – SI 2006/208
When transferring from a QROPS or former QROPS to another QROPS the member may have to give information to the transferring scheme manager. PTM102900 provides guidance on when members have to give information to a scheme manager before a transfer and the information and statements the member has to provide.
Notify change of country of residence after a transfer to a QROPS
Regulation 11BB Registered Pension Schemes (Provision of Information) Regulations 2006 - SI 2006/567
Regulation 3AF The Pension Schemes (Information Requirements for Qualifying Overseas Pension Schemes, Qualifying Recognised Overseas Pension Schemes and Corresponding Relief) Regulations 2006 – SI 2006/208
After transferring to a QROPS the member need to tell
- the scheme administrator or scheme manager of the transferring scheme and
- the scheme manager of the QROPS that received the transfer
when the member stops or starts being resident in a country.
PTM102950 provides detailed guidance on this requirement.
Member to provide the scheme administrator with their National Insurance number
Regulation 11C The Registered Pension Schemes (Provision of Information) Regulations 2006 - SI 2006/567
The scheme administrator needs to supply HMRC with details of a member’s National Insurance number when they complete an Event Report or an Accounting for Tax return. If a scheme administrator asks the member for details of their National Insurance number, within 60 days of the scheme administrator’s request the member must provide the scheme administrator with either:
- their National Insurance number, or
- written confirmation that they don’t qualify for a National Insurance number together with their date of birth and address.
Recycling of lump sums
Regulation 11A The Registered Pension Schemes (Provision of Information) Regulations 2006 - SI 2006/567
A lump sum paid to the member that would normally be a tax free pension commencement lump sum may be treated as a taxable unauthorised payment due to recycling. See PTM133810 for an explanation of recycling and when a lump sum is treated as an unauthorised payment due to recycling.
Where a lump sum is an unauthorised payment due to recycling the member must tell the scheme administrator within 30 days of the unauthorised payment being made:
- the date on which the unauthorised payment is treated as made, and
- the amount of the payment.