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HMRC internal manual

Pensions Tax Manual

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HM Revenue & Customs
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Information and administration: information that must be provided if requested by the deceased member’s personal representatives

Glossary PTM000001
   

 

Following a member’s death their personal representatives have to work out if there is a liability to the lifetime allowance charge. They may be able to establish this from the deceased member’s papers, for example annual BCE statements. However the personal representative may need more information to enable them to do this. Personal representatives can ask for more information from pension scheme administrators and insurance companies.

 

Requirements for scheme administrators
Requirements for insurance companies

Requirements for scheme administrators

Regulation 8 The Registered Pension Schemes (Provision of Information) Regulations 2006 - SI 2006/567

If the personal representative(s) requests it the scheme administrator must tell them the total percentage of the standard lifetime allowance used up by:

  • any benefit crystallisation events (BCEs) under the scheme in respect of the member to the extent that sums and assets representing those benefits have not been transferred to another registered pension scheme, and
  • where the scheme has received a transfer of crystallised rights the BCEs that occurred in respect of those transferred in rights.

However the scheme administrator should not include any details in respect of any:

  • payment of either a defined benefits lump sum death benefit or an uncrystallised funds lump sum death benefit,
  • BCE 5C, or
  • BCE 5D.

This information must be provided within two months of the scheme administrator receiving the request for information from the deceased member’s personal representative(s).

Guidance on calculating the total percentage of standard lifetime allowance crystallised for the purposes of providing information under this provision is at PTM164400. Note that there are special rule for members who had fixed protection, fixed protection 2014 or individual protection 2014.

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Requirements for insurance companies

Regulation 9 The Registered Pension Schemes (Provision of Information) Regulations 2006 - SI 2006/567

An insurance company must provide certain information to a deceased member’s personal representative(s) if that insurer had been paying to the member either a lifetime annuity or scheme pension that had been purchased with registered pension scheme sums and assets.

The information to be provided is the total percentage of the standard lifetime allowance used up by:

  • any BCEs under the scheme in respect of the member to the extent that sums and assets representing those benefits have not been transferred to another registered pension scheme, and
  • where the scheme has received a transfer of crystallised rights the BCEs that occurred in respect of those transferred-in rights.

This information must be provided within two months of the insurance company receiving the request for information from the deceased member’s personal representative(s).

Guidance on calculating the total percentage of standard lifetime allowance crystallised for the purposes of providing information under this provision is at PTM164400. Note that there are special rules for members who had fixed protection, fixed protection 2014, fixed protection 2016, individual protection 2014 or individual protection 2016.