Anti-avoidance powers – update


On 14 April 2008, the Government announced sweeping changes to the Pension Regulator’s anti-avoidance powers. These were designed to tackle “new business models” in pensions which, in severing the link between sponsor and scheme, might have the effect of reducing security for members and increase the risk of schemes going into the Pension Protection Fund. Following consultation by the Department for Work and Pensions, the Government has set out the detail of the proposed amendments in clauses tabled to the Pensions Bill on 20 October 2008. The primary legislation will be backed by a code of practice on the material detriment test. The most significant change to the anti-avoidance powers is the introduction of a new test for the imposition of a Contribution Notice (CN), which we focus on in this Alert.

Download PDF