Qualifying non-UK pension scheme meaning

The auto-enrolment duty Since 1 October 2012, at their staging date employers must auto‑enrol eligible jobholders into a qualifying pension scheme, allow opt‑outs, pay minimum contributions, and re‑enrol every three years. They also had to identify their staging date, workers, and scheme. Identifying the staging date PAYE 120,000+: from 1 October 2012. Under 120,000: 1 Nov 2012 to 1 Apr 2017. PAYE first payable Apr 2012–Sep 2017: 1 May 2017 to 1 Feb 2018. On/after 1 Oct 2017: first worker’s start date. DB or hybrid schemes could defer to 1 Oct 2017. Staging could be moved, and auto‑enrolment postponed up to three months. Who needs to be enrolled automatically? Eligible jobholders work (or ordinarily work) in Great Britain under a worker’s contract, are 22 to under State Pension age, and have qualifying earnings above the earnings trigger. What type of pension scheme can be used? ...

The single tier State Pension (on and from 6 April 2016) On 6 April 2016, the Basic State Pension was overhauled and replaced by a single-tier, flat-rate pension, merging the Basic State Pension with the Second State Pension. From that date, men and women alike must have 35 qualifying years of National Insurance contributions to receive the full flat-rate amount. Marital status makes no difference to the level paid. Tax year Amount (per week) 2026/2027 £241.30 2025/2026 £230.25 2024/2025 £221.20 2023/2024 £203.85 2022/2023 £185.15 2021/2022 £179.60 2020/2021 £175.20 2019/2020 £168.60 2018/2019 £164.35 2017/2018 £159.55 2016/2017 £155.65 The Basic State Pension (before 6 April 2016) Before 6 April 2016, the Basic State Pension comprised the Basic State Pension and the Second State Pension. There was a third, minor, component known as the graduated pension that depended on graduated National Insurance contributions paid by employees while the graduated scheme ran from 1961 to...

Background The Fee-Paid Judicial Pension Scheme (‘FPJPS’) was introduced in 2017, arising from the ruling in O’Brien v Ministry of Justice [2013] UKSC 6. It broadly replicated the pension arrangements for salaried judges under the Judicial Pensions and Retirement Act 1993 (‘JUPRA’) but, at launch, only awarded benefits for qualifying service from 7 April 2000 onwards. Following O’Brien v Ministry of Justice (Case C-432/17), FPJPS was revised to extend benefits to eligible service prior to 7 April 2000. The changes also allowed qualifying members to have benefits assessed under the Judicial Pensions Act 1981 (‘JPA81’), whose provisions covered certain salaried judges with service before 31 March 1995. The Judicial Pension Scheme 2015 (‘JPS15’), covering both salaried and fee-paid judges, began in 2015. In 2022, in response to concerns about recruiting and retaining judges, the Judicial Pension Scheme 2022 (‘JPS22’) came into force. It re-introduced tax-unregistered status (previously applying to JUPRA and FPJPS, but not JPS15) and offered a higher benefit accrual rate. The day before JPS22 started, all...

In this issue: Probate Trusts Court of Protection Elderly and vulnerable clients UK taxes for Private Client HMRC Manuals updates Budgets and Finance Bills Pensions, insurance and tax efficient investments Scotland, Wales and Northern Ireland International Question of the week Additional Private Client updates this week Daily and weekly news alerts LexTalk®Private Client: a Lexis+® community New and updated content Dates for your diary Trackers Latest Q&As Useful information Probate HMRC updates schedule IHT430 HMRC has issued a revised IHT430 schedule, used when claiming or choosing not to apply the reduced rate of inheritance tax where at least 10% of an estate is left to charity. The section on qualifying charities has been amended following legislative changes, meaning gifts to EU charities no longer secure IHT exemption. See: LNB News 10/09/2024 40. Source: Inheritance Tax: reduced rate of Inheritance Tax (IHT430)—GOV.UK (www.gov.uk). Trusts...

In this issue Budgets and Finance Bills Business structures VAT Taxes management and litigation Real estate taxes Anti-avoidance Employment Daily and weekly news alerts New and updated content Dates for your diary Trackers Useful information Autumn Budget 2024 On Wednesday 30 October 2024, Chancellor of the Exchequer Rachel Reeves presented Labour’s first Budget in 14 years, the inaugural Budget delivered by a woman. Headline measures included: Employer National Insurance contributions rising from 13.8% to 15% from 6 April 2025, alongside a cut to the secondary threshold to £5,000 per annum. Capital gains tax on carried interest increasing to 32% from 6 April 2025, with a reworked carried interest regime to be brought within the income tax framework from 6 April 2026. CGT rates for disposals qualifying for business asset disposal relief and investors’ relief moving to 14% for disposals on or after 6 April 2025, and to...

What is an assessment period? When a qualifying insolvency event affects the sponsoring employer of an eligible scheme, the scheme moves into a Pension Protection Fund (PPF) assessment period as a result of that event. This arises on the occurrence of that event. The day on which that period starts is known as the ‘assessment date’ for the scheme. Since 3 January 2012, the assessment period is no longer required to last for at least 12 months. Throughout the assessment period, the PPF considers whether the scheme satisfies the requirements for entry into the PPF. In particular, the PPF will appoint an actuary to carry out a valuation of the scheme as at the assessment date, in order to determine whether the scheme’s assets are less than the protected liabilities—broadly, the benefits the PPF would pay to members if the scheme were to enter the PPF...

Brexit impact The UK ceased to be an EU Member State on exit day, 31 January 2020. Under the Withdrawal Agreement, the state pension and benefit rights of UK nationals residing in the EU, European Economic Area (EEA) or Switzerland are protected. See: Benefits and pensions for UK nationals in the EU, EEA or Switzerland. Likewise, information on the entitlements of EEA and Swiss citizens to UK benefits and state pensions is set out at: Benefits and pensions for EEA and Swiss citizens in the UK. State pensions A state retirement pension depends on an individual’s National Insurance (NI) contribution record and may consist of up to three elements: the basic old age pension the State Second Pension (S2P—formerly the State Earnings Related Pension Scheme, SERPS) the graduated pension Payments are generally made gross, with tax collected through Pay As You Earn (PAYE) against a person’s other income, such as an occupational or private pension. Income tax can also...

This Practice Note examines the Financial Services Compensation Scheme (FSCS) in a pensions setting. For more background on the FSCS generally, consult the following Practice Notes: The Financial Services Compensation Scheme The payment or rejection of compensation under the Financial Services Compensation Scheme (FSCS) Financial Services Compensation Scheme (FSCS)—the qualifying conditions for compensation Financial Services Compensation Scheme (FSCS)—funding Financial Services Compensation Scheme (FSCS)—automatic assignment or subrogation of rights Financial Services Compensation Scheme (FSCS)—payment or rejection of compensation What is the FSCS? The FSCS is the UK’s statutory compensation fund for customers of most financial services firms authorised under the Financial Services and Markets Act 2000 (FSMA 2000). It took effect on 1 December 2001. In strict terms, the FSCS is the set of rules that establish it (the Rules). The Rules were originally made by the Financial Services Authority (FSA) and, from 1 April 2013, have been made by the Financial Conduct Authority (FCA) and the Prudential Regulation...