TRSM26020 - Types of trust that need to be registered: contents: further considerations for registrable taxable trusts: contents: occupational pension schemes

There are two conditions to consider for whether an occupational pension scheme is required to register on the Trust Registration Service (TRS):

• Condition A - the trust in question is either a UK express trust or a non-UK express trust with UK source income or UK assets; and,
• Condition B - the trustees are liable to pay any of the relevant UK taxes in relation to the income or assets of the trust.

Where both these conditions are met then the trustees need to register the trust on TRS. Normally, it would be expected that a pension scheme set up as a trust would be an express trust in these circumstances.

However, pension schemes already registered with HMRC (‘registered pension schemes’ under Part 4 of the Finance Act 2004) will not need to register on TRS if the scheme administrator has to pay UK income tax solely because:

• they are jointly and severally liable with the member for a lifetime allowance charge; 
• they pay the member’s annual allowance charge (also called ‘scheme pays’); or, 
• they are liable to 
  • special lump sum death benefits charge
  • short service refund lump sum charge 
  • authorised surplus payments charge 
  • de-registration charge 
  • unauthorised payments charge 
  • unauthorised payments surcharge 
  • scheme sanction charge 
  • overseas transfer charge, or 
  • tax under PAYE on a member’s pension or lump sum benefits or on the benefits of the recipient after the member dies.

Valuing assets for registering a pension scheme

The usual rules for valuing the assets in a trust still apply, see TRSM32090. Additionally, details of the assets are likely set out in the latest scheme accounts. Where these provide a reasonably good estimate of the market value of the assets at the first point of registration, then the latest scheme accounts figures can be used.