Segregated fund meaning

THIS PRACTICE NOTE APPLIES ONLY TO DEFINED BENEFIT AND HYBRID OCCUPATIONAL PENSION SCHEMES Typically, a scheme’s route into the PPF starts when the sponsoring employer of an eligible arrangement experiences a qualifying insolvency event. For a scheme to enter the PPF, its sponsoring employer must satisfy the statutory meaning of ‘employer’ for that purpose. Who counts as the ‘employer’ differs according to whether: the scheme is a single-employer scheme, or is/has been a multi-employer scheme the scheme has active members on the date of the qualifying insolvency event Definition of employer under section 318 of the Pensions Act 2004 Under section 318 of the Pensions Act 2004 (PeA 2004), an employer, in relation to an occupational pension scheme, is the employer of ‘persons in the description of employment to which the scheme in question relates’ (the ‘relevant employees’). Current case law suggests that relevant employees include: active members of the scheme—note G4S v G4S Trustees Ltd,...

ARCHIVED This archived Practice note outlines why non-domiciled individuals (non-doms) relying on the remittance basis of taxation should correctly establish segregated foreign bank accounts, and identifies accounts that may prove helpful. Suggested arrangements include: a pre-entry account separate accounts for capital gains and for capital losses dedicated interest accounts an account for income that has borne foreign tax an account for income or gains that have been nominated The use of segregated (separate) foreign (overseas/non-UK) accounts is advised so that clean capital can be remitted free of UK tax. Abolition of the UK’s existing tax regime for UK resident non-UK domiciled individuals: on 29 July 2024, the UK Chancellor, Rachel Reeves, confirmed that, from 6 April 2025, the government will proceed with abolishing the current non-dom regime and introducing the new four-year FIG (foreign income and gains) exemption regime announced by the previous government at the March 2024 Budget—see: Spring Budget 2024—Private Client analysis—International. The four-year FIG exemption will...

THIS PRACTICE NOTE APPLIES ONLY TO DEFINED BENEFIT AND HYBRID OCCUPATIONAL PENSION SCHEMES What is a 'sectionalised' pension scheme? A pension scheme can be set up in several different ways and configurations. For example, it might take the following forms: include more than one participating employer within the same arrangement and establish distinct benefit designs for members employed by different employers originate from earlier mergers or bulk transfers of members’ benefits arising out of corporate transactions, leaving a single sponsoring employer but retaining rules under which different groups of members receive different benefits provide both earlier, historic defined benefits together with more recent defined contribution benefits operate as an industry-wide arrangement that permits multiple employers to participate, each with its own section delivering benefits to its own employees The rules of the scheme may then expressly state: that the scheme’s assets are held and administered as one overall fund and, therefore, cross-subsidy between the different sections...