Pension schemes: HMRC approval of changes

HMRC has issued a reminder that transitional provisions relating to HMRC approval of changes to registered pension schemes will end on 5 April 2011.

Prior to the introduction of the simplified pensions tax regime on 6 April 2006, changes to the rules of a Revenue-approved pension scheme had to be approved by HMRC. In order to ensure tax-privileged status would be maintained, many schemes had an HMRC approval condition written into their rules.

From 6 April 2006 (‘A-Day’), the HMRC approval requirement for changes to scheme rules was removed. In order to assist those schemes whose rules still required HMRC approval, transitional provisions were introduced. The Registered Pension Schemes (Modification of the Rules of Existing Schemes) Regulations, SI 2009/3055 permitted schemes to make changes to their rules without the need for HMRC approval regardless of any restriction in their rules.

This transitional treatment applies from 6 April 2006 until the earlier of 5 April 2011 or the time when pension schemes have amended their rules to remove the requirement for HMRC approval.