Information and administration: scheme administrator requirement to provide information about a lifetime allowance charge
Regulation 12 The Registered Pension Schemes (Provision of Information) Regulations 2006 - SI 2006/567
Where liability to the lifetime allowance charge arises the scheme administrator is jointly and severally liable with the member to the tax charge (unless it arose out of a BCE 5C or a BCE 7). The scheme administrator must tell the member if they have paid or intend to pay part or all of their shared liability to the lifetime allowance charge. The member needs this information to enable them to complete their tax return correctly.
Within three months of the date of the benefit crystallisation event the scheme administrator must give the member the following information:
- the chargeable amount (the amount liable to the lifetime allowance charge) that has arisen as a result of the benefit crystallisation event
- details of how the chargeable amount has been calculated
- the amount of tax due, and
- whether the scheme administrator has accounted for the tax, or intends to do so at a later date.