PTM160200 - Information and administration: essential principles: retention of records
Glossary |
Requirement to keep records in respect of registered pension schemes
Specific requirements for schemes operating relief at source (RAS)
Requirement to preserve documents/records relating to enhanced allowances protection
General requirement to keep records
Sections 251(1)(b) and 258(2) Finance Act 2004
Regulation 18 The Registered Pension Schemes (Provision of Information) Regulations 2006 - SI 2006/567
Requirement to keep records in respect of registered pension schemes
Any person who is or has at any time been the scheme administrator, a trustee, or a provider of administrative services to a registered pension scheme is required to preserve certain documents.
If the scheme is an occupational pension scheme, this requirement also applies to any person who is or has been a sponsoring employer or a director of an employer company.
The documents in question are those in their possession or under their control that relate to:
- any monies received by or owing to the scheme
- any investments or assets held by the scheme
- any payments made by the scheme
- any contracts to purchase a lifetime annuity in respect of a member of the scheme
- the administration of the scheme.
The documents must be preserved for the tax year to which they relate and for the following six tax years.
If a person has ceased acting for the scheme or providing administrative services to the scheme, they are not required to retain the documents if they have transferred the documents to another person who has succeeded them in their duties.
Where a person fails to comply with this record keeping requirement they can be liable to a penalty of up to £3000.
Specific requirements for schemes operating relief at source (RAS)
Regulation 16 The Registered Pension Schemes (Relief at Source) Regulations 2005 - SI 2005/3448
If a scheme operates relief at source (RAS) the scheme administrator is required to preserve any book, documents and other records in their possession or under their control that relate to:
- any contribution paid to the scheme administrator
- the scheme to which those contributions were paid, and
- the individual who paid those contributions.
The records should be kept six years following the end of the latest tax year to which they relate.
Any information and declarations that a member is required to provide under regulations 4 to 8 of SI 2005/3448 before they make a contribution under RAS (see PTM044220) should be kept for six years following the end of the tax year in which the member stopped making contributions.
Requirement to preserve documents/records relating to enhanced allowances protection
Where an individual notifies HMRC of their right to a form of enhanced allowances protection and HMRC gives them a protection certificate or a reference number in the case of individual protection 2016 they must preserve documents as follows.
Fixed protection and fixed protection 2014
Regulation 13 The Registered Pension Schemes (Enhanced Allowances Transitional Protection) Regulations 2011 - SI 2011/1752
Regulation 13 The Registered Pension Schemes and Relieved Non-UK Pension Schemes (Enhanced Allowances Transitional Protection) (Notification) Regulations 2013 - SI 2013/1741
The individual must keep the protection certificate until no further relevant benefit crystallisation event can occur in respect of them. This requirement stops when the protection certificate has been revoked.
For the avoidance of doubt, as an individual is issued with a reference number instead of a protection certificate for fixed protection 2016, there is no requirement to preserve any documents or records for this form of protection.
Individual protection 2014
Regulation 13 The Registered Pension Schemes and Relieved Non-UK Pension Schemes (Enhanced Allowances Transitional Protection) (Individual Protection 2014 Notification) Regulations 2014 - SI 2014/1842
The individual must keep all documents relating to the relevant notification including the calculation of their relevant amount and amounts A, B, C and D (as appropriate) for a period of six years from the day on which the individual gives their notification for individual protection 2014 to HMRC.
The individual must also keep their protection certificate until no further relevant benefit crystallisation event can occur in respect of them. This requirement stops if the protection certificate has been revoked or replaced.
Individual protection 2016
Paragraph 21 Schedule 4 Finance Act 2016
For a period of six years beginning with the date on which their application for a reference number was made, the individual must keep all records relating to the correct calculation of their relevant amount and amounts A, B, C and D (as appropriate).
Other forms of allowance enhancement factors and enhanced protection
Regulation 11 The Registered Pension Schemes (Enhanced Allowances) Regulations 2006 - SI 2006/131
The individual must keep all documents relating to the information given in their notification for six years beginning with the date on which they made their allowance protection notification.
General requirement to keep records
Section 12B Taxes Management Act 1970
Scheme members and trustees also have a requirement to keep records relating to their own tax position. This requirement applies whether or not they normally have to file a tax return as any member or trustee can potentially be sent a notice to file a tax return.
As a generic tax requirement guidance on this subject is in the Compliance Handbook: