CG67655 | Pension schemes: De-registration

Section 239A Taxation of Chargeable Gains Act 1992

Section 157 and 242 Finance Act 2004

In certain circumstances HMRC can withdraw the ‘registered’ status from a registered pension scheme. This is known as de-registration. PTM033100 provides more information about this. When a scheme is de-registered, a de-registration charge under section 242 Finance Act 2004 arises. This is based on the sums and assets held for the purposes of the scheme immediately before the scheme was de-registered. PTM033300 provides more information about this.

When a scheme becomes de-registered the exemption from capital gains tax on the disposal of scheme investment ceases to apply. Section 239A TCGA provides that the assets held immediately before the scheme was de-registered are treated as acquired immediately before the scheme was de-registered. Those assets are treated as acquired at an amount equal to the amount chargeable to the de-registration charge under section 242 FA 2004.