The Finance Act 2004, Section 180(5) (Modification) Regulations, SI 2012/1258, prevent pension schemes established under Pensions Act 2008 s 67 from becoming liable to income tax charges solely by reason of buying shares in sponsoring employers at a time when such shares already make up at least 20% of the total market value of the scheme’s sums and assets. The National Employment Savings Trust, which was established to help employers meet their automatic enrolment duties, is the only scheme established under PA 2008 s 67.
This measure will remove unintended tax charges that might have been payable by NEST and certain of its sponsoring employers, HMRC said in an explanatory note.
‘The risk that NEST and its sponsoring employers will incur unintended tax charges is increasing as more employers start to use it. In order to eliminate the risk entirely, the instrument applies retrospectively to all share purchases that NEST has made or makes on or after 6 April 2012.’
The Finance Act 2004, Section 180(5) (Modification) Regulations, SI 2012/1258, prevent pension schemes established under Pensions Act 2008 s 67 from becoming liable to income tax charges solely by reason of buying shares in sponsoring employers at a time when such shares already make up at least 20% of the total market value of the scheme’s sums and assets. The National Employment Savings Trust, which was established to help employers meet their automatic enrolment duties, is the only scheme established under PA 2008 s 67.
This measure will remove unintended tax charges that might have been payable by NEST and certain of its sponsoring employers, HMRC said in an explanatory note.
‘The risk that NEST and its sponsoring employers will incur unintended tax charges is increasing as more employers start to use it. In order to eliminate the risk entirely, the instrument applies retrospectively to all share purchases that NEST has made or makes on or after 6 April 2012.’
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