From 31 January 2002, a new procedure announced today via Pensions Update No 114 will apply for claiming tax relief on contributions to overseas pension schemes (corresponding relief). No longer will it be necessary to supply IR SPSS with a copy of the overseas scheme rules, nor the existing questionnaire. Instead, applications should be made on a new self-certification form PS 3008, with a declaration that the overseas scheme “corresponds” (as defined in PNs 15.16 - 17) to a UK-approved retirement benefits scheme. If the rules allow in-service loans or withdrawal of funds, an additional undertaking will still be required. If the law in the country concerned allows members to access scheme funds, as in Switzerland, IR SPSS will reject the application. PN 15.18 has been amended accordingly.

Several other paragraphs in Part 15 of IR 12 have been amended at the same time: these changes are spelled out in Pensions Update No 115. Most were announced a long time ago in PSO Update No 11, but there is one new point (PN 15.11, penultimate subparagraph). This states that admission of an employee working abroad for an overseas employer to a UK-approved scheme is not necessarily contingent upon a previous period of service in the UK.

Update No 115 also contains a three-page list of cross-references which have been corrected in IR 12 (referred to in Update No 111 but omitted); practitioners seeking to keep their copy of IR 12 fully up to date will need this list as well as the new Part 15.

Finally, and again published today, Pensions Update No 113 announces that in future, those involved in running self-administered schemes will receive only one reminder (instead of the present three) that the Actuarial Valuation Report (AVR) is due. This is further cost-saving measure has been discussed by the SPSS Customer Forum; the time-scales announced, ie 8 weeks before the due date for SSASs and 6 months for large schemes, are broadly in line with the consensus of that consultative body. The current three-reminder procedure will still apply for schemes whose next due date is on or before 31 March 2002.