GMP equalisation: tax effects of transfer top-ups & conversion

Her Majesty's Revenue and Customs (HMRC) has published a new Guaranteed Minimum Pension (GMP) Equalisation Newsletter, covering issues that arise when scheme administrators take corrective action in connection with historical transfers, and providing an update and guidance for those who convert GMPs into ordinary scheme benefits after equalisation.

Tax relief for low earners in ‘net pay’ arrangements

Her Majesty’s Treasury (HMT) expects that the first top-ups for scheme members affected by the ‘net pay anomaly’ will be ‘paid by 2026-27’. This seems like evidence of slippage in the timetable announced at the time of the Autumn Budget 2021.

Regulator pursues overseas parent over MBO

The Pensions Regulator has imposed a contribution notice on a German company that (in its assessment) disposed of a UK business with a ‘complete disregard’ for the interests of the business’s defined benefit (DB) pension scheme. For the first time, the contribution notice included amounts in respect of lost investment returns and interest.

Regulator's guidance on conflict in Ukraine

In March, the Pensions Regulator has published a brief note on its expectations of pension scheme trustees in light of the conflict in Ukraine. The note mainly covers investment issues, but also touches on cyber security and member communications.

HMRC newsletter April 2022

Highlights from Her Majesty’s Revenue and Custom's Pension Schemes Newsletter 138.