Commentary on Sections Supplementary provisions Section 23: Taxation
119.Subsections (1) and (4) of this section allow the Treasury by regulations to modify the way in which any relevant tax would otherwise have effect in relation to the new scheme, the members of the new scheme or a fund within section 21(1)(c).
120.Subsection (2) allows the Treasury to make regulations providing for the new scheme to be treated as a registered pension scheme under Part 4 of the Finance Act 2004
121.Subsections (3) and (4) allow the Treasury by regulations to modify the taxation treatment that could otherwise arise as a consequence of the changes effected by an order under Part 2 of this Act. This will allow tax provision to be made in respect of the Royal Mail Pension Plan (“RMPP, members of the Royal Mail Pension Plan (“RMPP, and Royal Mail group companies in relation to payments made, directly or indirectly, in relation to the Royal Mail Pension Plan (“RMPP or its members. These subsections will enable tax provision to be made mitigating the tax charges that might otherwise have arisen in respect of transfers of assets and in respect of tax consequences for the Royal Mail group companies of the changes to the pension arrangements.
122.Subsection (5) provides that regulations under subsections (1) and (3) can have retrospective effect provided that the regulations do not impose a charge to tax or withdraw a tax relief.
123.Subsection (6) enables the Treasury to make regulations to extinguish trade losses, made by companies in the Royal Mail group, in a qualifying accounting period, that the Treasury consider are attributable to deductions relating to contributions in respect of qualifying members of the Royal Mail Pension Plan (“RMPP. Such regulations would prevent companies in the Royal Mail group from using the losses to offset future tax liabilities.
124.Subsection (7) defines a qualifying accounting period for the purpose of subsection (6).
125.Subsection (8) ensures that regulations under subsection (6) only have effect if the company is wholly owned by the Crown on the day before an order is made establishing a new public scheme or transferring qualified accrued rights to a new public scheme.
126.Subsection (9) lists the taxes for which provision can be made and defines terms used in the section