Under amendments to existing legislation in The Registered Pension Schemes (Relief at Source) Regulations 2005 (Statutory Instrument 2005/3448) is set out in a policy paper published on 30 November 2017, the time period for the filing of interim and annual claims is reduced.

The changes see the period for making an annual claim from six months to three months following the end of the year of assessment.

It also means the period within which an interim claim may be made from six months to three months, and introduces requirements for claiming excess relief in an interim claim. The measure also introduces a provision for interest to be charged on any late repayment of excess relief.

It introduces requirements for submitting an annual return of individual information. It also sets requirements for claiming excess relief in an interim claim and introduces an interest charge.

The government said the introduction of Scottish income tax creates the potential for the wrong rate of income tax relief being applied to members’ contributions to their pension pot.

Pension scheme administrators must use the rate of income tax as advised by HMRC, or use the default rate applicable to the rest of the UK. The government claims this may result in the wrong rate being applied for many members resident in Scotland and introduce administrative burdens for all parties in rectifying the position after the end of the tax year.

Changes to the filing date for the annual return of individual information is being introduced following the introduction of Scottish Income Tax. Scottish Income Tax was introduced from 6 April 2016. The new due date will be 5 July.

The measure introduces The Registered Pension Schemes (Relief at Source) (Amendment) Regulations 2018, which amends The Registered Pension Schemes (Relief at Source) Regulations 2005 (Statutory Instrument 2005/3448).

While the move is expected to have a negligible impact the Exchequer, the requirement for schemes to report and repay excess relief claims within 30 days of discovery will bring money into the public purse sooner than at present. However, the amounts involved are relatively small and the Exchequer impact is thought to be below £3m.

Despite that, it is anticipated that 1,065 pension schemes operating the Relief at Source regime will be affected.

Annual returns currently submitted by pension scheme administrators will not change, but reports will need to be submitted to HMRC earlier in the 2017 to 2018 tax year, and later tax years, than at present.

Pensions Tax: changes to administration of Relief at Source is available here.

Report by Calum Fuller