Finance Act 2004

158 Grounds for de-registration

(1) The registration of a pension scheme may be withdrawn under section 157 only if it appears to the Inland Revenue—

(a) that the amount of the scheme chargeable payments (see section 241) made by the pension scheme during any period of 12 months exceeds the de-registration threshold,

(b) that the scheme administrator fails to pay a substantial amount of tax (or interest on tax) due from the scheme administrator by virtue of this Part,

(c) that the scheme administrator fails to provide information required to be provided to the Inland Revenue by virtue of this Part and the failure is significant,

(d) that any information contained in the application to register the pension scheme or otherwise provided to the Inland Revenue is incorrect in a material particular,

(e) that any declaration accompanying that application or the provision of other information to the Inland Revenue is false in a material particular, or

(f) that there is no scheme administrator.

(2) The amount of the scheme chargeable payments made by a pension scheme during any period of 12 months exceeds the de-registration threshold if the scheme chargeable payments percentage is 25% or more.

(3) The scheme chargeable payments percentage is—

(a) if only one scheme chargeable payment is made during the period of 12 months, the percentage of the pension fund used up on the occasion of that scheme chargeable payment, and

(b) if two or more scheme chargeable payments are made during the period of 12 months, the aggregate of the percentages of the pension fund used up on the occasion of each of those scheme chargeable payments.

(4) The percentage of the pension fund used up on the occasion of a scheme chargeable payment is—

where—

• SCP is the amount of the scheme chargeable payment, and

• AA is an amount equal to the aggregate of the amount of the sums and the market value of the assets held for the purposes of the pension scheme at the time when the scheme chargeable payment is made.

(5) A failure by a scheme administrator to provide information required to be provided to the Inland Revenue by or under this Part is significant if—

(a) the amount of information which the scheme administrator fails to provide is substantial, or

(b) the failure to provide the information is likely to result in serious prejudice to the assessment or collection of tax.