Aries monitors every development in new and proposed legislation and official guidance. Clients are kept up to date via the website, email alerts and tweets. Aries serves as a one-stop source of intelligence on everything that is going on and coming up. Aries doesn't miss anything of significance.
Here is a selection from our most recent headlines. You can get the fuller details by sending us an email - just click here to fire one off.
This week The Pensions Regulator (TPR) hosted a webinar
on its consultation proposals
for a clearer defined benefit (DB) funding framework (where schemes will adopt either a Bespoke or a Fast Track approach to funding). David Fairs, Executive Director for Regulatory Policy, Analysis and Advice, and TPR's DB funding code team highlighted the main aspects of the consultation and answered questions.
David Fairs noted recent events had led to
calls for TPR to pause or abandon its pursuit of a new DB funding framework. This has been consistently rejected, with TPR noting that now more than ever, DB schemes need a stable long-term funding objective. It is already accepted that despite operating largely as intended, the existing regime needs to be improved.
TPR is eager that its proposals do not add to the regulatory burden on schemes. The aim is to benchmark what an effective scheme funding approach looks like.
this week have drawn attention to an interesting High Court hearing last month, of which judgment is expected in October 2020, in which the Board of the Pension Protection Fund (PPF) and Dalriada Trustees jointly asked the Court for guidance on the correct interpretation of legislation.
The case focused on the Fraud Compensation Fund (FCF), set up under the Pensions Act 2004, which replaced the Pensions Compensation Board (PCB)
from 1 September 2005. In the eight years of its existence the PCB only ever paid out three claims, viz.
* £42,104.87 in three tranches (most recent December 2001) to the trustees of the Warwick Group Pension Scheme;
* £13,906.88 on 5.8.02 to Biltons Tableware Scheme; and finally
* a total of £2,886,167, in seven tranches (the final payment of £2,376,754 on
22.12.04), to the independent trustee of the Cheney Pension Scheme (Independent Trustee Services Ltd, part of the Jardine Lloyd Thompson Group).
Although data is hard to come by, it would appear equally few successful claims have been made to the FCF in the past fifteen years. None were paid in 2019; although the PPF's most recent annual report and accounts for 2018/19 notes that four . . .
21 Aug 2020
In 2018, HMRC succeeded
in the Court of Appeal in overturning a previous decision
by the Upper Tier Tribunal (UTT) in the case of HMRC v Parry & Ors
, relating to a pension transfer in October 2006 by Mrs R F Staveley, two months before her death.
HMRC's stance was that both the transfer from her s.32 policy to a personal pension (PP), and subsequently omitting to take lifetime benefits from the PP, were lifetime transfers of value for Inheritance Tax (IHT) purposes. HMRC argued her actions were
benefit to her own estate, which is the position taken in the IHT Manual
. The one positive from the case was that Mrs Staveley's decision not to take benefits from the PP after the transfer, from 6 April 2011 was no longer justification
for HMRC to levy an IHT charge.
On 19 August 2020, by a majority of 3-2, the Supreme Court partially allowed the appeal by the executors of Mrs . . .
21 Aug 2020