Registered pension schemes will be required to send returns online and make electronic payments to the Inland Revenue from the start of the new tax regime on 6 April 2006.
Stephen Timms, financial secretary to the Treasury, said in a ministerial statement yesterday that the requirement would be made in order to “achieve the levels of efficiency and effectiveness that both we and the pension industry want” from the new regime for taxation of pensions.
He added: “The decision to move to a fully on-line service was taken after extensive discussions with the industry over the summer. There are still a number of issues of detail on how precisely we can achieve an e-based regime and we will be asking the pensions industry, software suppliers and other interested parties to work closely with us on this.
“The Inland Revenue will be publishing a short paper early next month outlining the key issues and areas they would like to work on together with those who will be involved in registered pension schemes.”
[Commons Hansard 25 Oct 2004: Column 43WS]
Part 4 of the Finance Act 2004 sets out new rules for the tax treatment of pension schemes, contributions and benefits. These will replace the existing regimes for occupational and personal pensions, retirement annuities and stakeholder