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The Postal Services Act 2011 (Taxation) Regulations 2012 are intended to remove unintended tax consequences of the transfer of assets and liabilities by the Royal Mail of the Royal Mail Pension Plan (RMPP) to the government.
The new regulations will protect the tax privileges of members of the RMPP when their pension rights are transferred to a new government pension scheme.
It change will ensure the new public pension scheme that takes over the pension rights will be a registered pension scheme and that the transfer of rights made in accordance with the orders under the Postal Services Act 2011, s 17(2) and a 21(1) will not lead to tax charges on the RMPP and its members as unauthorised payments.
Provision is also being made to maintain existing protections for members of the pension plan, so that entitlements in the scheme do not give rise to additional tax charges when paid by the new public scheme.
The legislation includes corporation tax and stamp taxes provisions to ensure charges and deductions do not arise as a consequence of recognition of the changes to the pension arrangements.
