Finance Act 2014

De-registration of pension schemes U.K.

6 (1) Section 158 (grounds for de-registration) is amended as follows. U.K.

(2) In subsection (1)—

(a) before paragraph (a) insert—

“(za) that the pension scheme has not been established, or is not being maintained, wholly or mainly for the purpose of making payments falling within section 164(1)(a) or (b) (authorised payments of pensions and lump sums),”,

(b) in paragraph (d) for “incorrect” substitute “ inaccurate ”,

(c) after paragraph (d) insert—

“(da) that the scheme administrator fails to produce any document required to be produced to an officer of Revenue and Customs by virtue of this Part or Part 1 of Schedule 36 to the Finance Act 2008,

(db) that any document produced to an officer of Revenue and Customs by the scheme administrator contains a material inaccuracy in relation to which at least one of conditions A to C in subsections (7) to (10) is met,”, and”

(d) for paragraph (e) substitute—

“(e) that any declaration accompanying the application to register the pension scheme, or otherwise made to an officer of Revenue and Customs in connection with the pension scheme, is false in a material particular,

(ea) that the scheme administrator has deliberately obstructed an officer of Revenue and Customs in the course of an inspection under Part 2 of Schedule 36 to the Finance Act 2008 that has been approved by the tribunal, or”.

(3) In subsection (1) (as amended by sub-paragraph (2) above)—

(a) after paragraph (za) insert—

“(zb) that the person who is, or any of the persons who are, the scheme administrator is not a fit and proper person to be, as the case may be—

(i) the scheme administrator, or

(ii) one of the persons who are the scheme administrator,”, and

(b) in paragraph (ea) after “under” insert “ section 159B or ”.

(4) After subsection (5) insert—

“(6) Subsections (7) to (10) apply for the purposes of subsection (1)(db).

(7) Condition A is that the inaccuracy is careless or deliberate.

(8) An inaccuracy is careless if it is due to a failure by the scheme administrator to take reasonable care.

(9) Condition B is that the scheme administrator knows of the inaccuracy at the time the document is produced to an officer of Revenue and Customs but does not inform such an officer at that time.

(10) Condition C is that the scheme administrator—

(a) discovers the inaccuracy some time later, and

(b) fails to take reasonable steps to inform an officer of Revenue and Customs.”

7 U.K. In Chapter 2, after section 159 insert—

“159A Power to require information or documents for purpose of considering if scheme administrator is fit and proper

(1) An officer of Revenue and Customs may by notice (an “information notice”) require the scheme administrator of a registered pension scheme or any other person—

(a) to provide the officer with any information, or

(b) to produce a document to the officer,

if the officer reasonably requires the information or document for the purpose of considering whether the person who is, or any of the persons who are, the scheme administrator is a fit and proper person to be the scheme administrator or one of those persons (as the case may be).

(2) Paragraphs 6(2), 7, 8, 15, 16, 18 to 20, 23 to 27, 42 and 43 of Schedule 36 to the Finance Act 2008 (information notices etc) apply in relation to information notices under this section as they apply in relation to information notices under that Schedule.

(3) Where an information notice under this section is given to a person other than the scheme administrator, an officer of Revenue and Customs must give a copy of the notice to the scheme administrator.

(4) A person who is given an information notice under this section may appeal against the notice or any requirement in the notice.

(5) Paragraph 32 of Schedule 36 to the Finance Act 2008 (procedures for appeals against information notices) applies for the purposes of an appeal under subsection (4) as it applies for the purposes of an appeal under Part 5 of that Schedule.

159B Power to inspect documents for purpose of considering if scheme administrator is fit and proper

(1) An officer of Revenue and Customs may—

(a) enter any business premises of the scheme administrator of a registered pension scheme or of any other person, and

(b) inspect documents that are on the premises,

if the officer reasonably requires to inspect the documents for the purpose of considering whether the person who is, or any of the persons who are, the scheme administrator is a fit and proper person to be the scheme administrator or one of those persons (as the case may be).

(2) In subsection (1)(a) “business premises” has the meaning given by paragraph 10(3) of Schedule 36 to the Finance Act 2008 (power to inspect business premises etc).

(3) Paragraphs 10(2), 12, 15 and 16 of Schedule 36 to the Finance Act 2008 apply in relation to the power of inspection conferred by this section as they apply in relation to the power of inspection conferred by paragraph 10 of that Schedule.

(4) An officer of Revenue and Customs may not inspect a document under this section if or to the extent that, by virtue of a provision of Part 4 of Schedule 36 to the Finance Act 2008 (restrictions on powers) applied by section 159A(2), an information notice under section 159A given at the time of the inspection to the occupier of the premises could not require the occupier to produce the document.

(5) An officer of Revenue and Customs may ask the tribunal to approve an inspection under this section.

(6) Paragraph 13(1A), (2) and (3) of Schedule 36 to the Finance Act 2008 (approval of tribunal for inspections) applies in relation to an application under subsection (5) as it applies in relation to an application under paragraph 13 of that Schedule in relation to an inspection under paragraph 10 of that Schedule.

159C Penalties for failure to comply with information notices etc

(1) This section applies where a person—

(a) fails to comply with an information notice under section 159A, or

(b) deliberately obstructs an officer of Revenue and Customs in the course of an inspection under section 159B that has been approved by the tribunal.

(2) The reference in subsection (1)(a) to a person who fails to comply with an information notice includes a person who conceals, destroys or otherwise disposes of, or arranges for the concealment, destruction or disposal of, a document in breach of paragraph 42 or 43 of Schedule 36 to the Finance Act 2008 as applied by section 159A(2).

(3) Paragraphs 39(2), 40 and 44 to 49 of Schedule 36 to the Finance Act 2008 (penalties for failure to comply with information notice etc) apply in relation to the failure or obstruction as they apply in relation to a failure or obstruction mentioned in paragraph 39(1) of that Schedule.

159D Penalties for inaccurate information or documents provided under information notice

(1) This section applies where—

(a) in complying with an information notice under section 159A, a person provides inaccurate information or produces a document that contains an inaccuracy, and

(b) the inaccuracy is material.

(2) Paragraphs 40A and 46 to 49 of Schedule 36 to the Finance Act 2008 (penalties for inaccurate information and documents) apply in relation to the inaccuracy as they apply in relation to an inaccuracy connected with an information notice under that Schedule.”

8 (1) The amendments made by paragraphs 6 and 7 have effect in relation to pension schemes whenever registered (including schemes registered by virtue of paragraph 1 of Schedule 36 to FA 2004 (deemed registration of existing schemes)). U.K.

(2) The amendments made by paragraph 6(2) and (4) are treated as having come into force on 20 March 2014.

(3) The amendments made by paragraphs 6(3) and 7 come into force on 1 September 2014 or, if later, the day after the day on which this Act is passed.