Initial analysis of the Pensions Bill suggests the Department of Work and Pensions "forgot" to compare notes with the Inland Revenue as its latest proposal includes a rule, which will be abolished under simplification proposals being introduced next year.
John Lawson, senior technical manager at Standard Life, says point no. 217 in the Bill - entitled 'Power to prescribe conditions by reference to Inland Revenue approval' - refers to a tax approval rule, which will, in fact, become non-existent under the new IR regime.
The Bill states: "Regulations about pension schemes made under this Chapter may contain provisions framed by reference to whether or not a scheme (a) is approved under Chapter 1 (retirement benefit schemes) of Part 14 of the Income and Corporation Taxes Act 1988, or is a relevant statutory scheme within the meaning of that Chapter, or (b) is approved under Chapter 4 (personal pension schemes) of that Part."
However, Lawson says, there will be no requirement to gain tax approval in the future once the Revenue proposals come into effect.IFAonline
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