UK HMRC published Dec 2024 newsletter 165 on the latest in pensions schemes.
Topics in Newsletter
Contains articles on managing pension schemes service, pension payments to trustees with regard to bankruptcy, and tax treatment of tax free lump sums paid.
Specifically paid into a registered pension scheme, and also article on lifetime allowance (LTA) abolition, and relief at source, on residency status reports.
Pension Scheme Return (PSR)
In terms of managing pension schemes, from Apr. 2025, submissions must be made for any returns for tax year 2024 to 2025, re Managing pension schemes service.
Persons will not be able to file a PSR for the tax year 2024 to 2025 onwards on the pension schemes online service, and UK HMRC will send you a notice accordingly.
Notice to file will outline the deadline for the pension scheme return submission.
There are two types, including standard, and self-invested person pension (SIPP).
Pension Payments to Trustees
In Pension schemes newsletter 93, UK HMRC issued information on tax treatment of payments to trustees in bankruptcy, and article correctly states an issue on benefits.
For instance, once benefits are paid to the trustee in bankruptcy the member may be subject to the money purchase annual allowance (MPAA) on further contributions.
Article also stated that normal Income Tax rules apply to payments to trustees in bankruptcy, but this was an error and such payments are taxable only at basic rate.
Even if the member is a higher rate taxpayer, as per UK HMRC guidance at CWG2.
