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MTT10250 | Scope: Excluded entities: Definitions of ‘pension fund’ and ‘pension services entity’

From HM Revenue & Customs · Multinational Top-up Tax and Domestic Top-up Tax

The definitions of pension fund and pension services entity are set out in section 235 of Finance (No.2) Act 2023.

Pension fund

An entity is a pension fund if it is established and operated in a territory exclusively, or almost exclusively, to administer or provide retirement and ancillary or incidental benefits to individuals, and:

  • it is regulated as such in that territory, or

  • the benefits provided are secured or otherwise protected by national regulations and funded by a pool of assets that are held via a fiduciary arrangement or trust to secure the fulfilment of corresponding pension obligations against a case of insolvency of the entity, or the group of which it is a member.

A pension services entity is also considered to be a pension fund.

Pension services entity

An entity is a pension services entity if it is established and operated exclusively, or almost exclusively, to:

  • invest funds for the benefit of an entity that is a pension fund (other than a pension services entity), or

  • carry out activities that are ancillary to the regulated activities carried out by a pension fund (other than a pension services entity) that is a member of the same group.