The Registered Pension Schemes (Authorised Member Payments) Regulations 2023

In view of the coming into force of the Financial Services and Markets Act 2023 and subsequent rules made by the Prudential Regulation Authority (PRA) pertaining to the write-down of insurance liabilities in insurance debt or policies in case of financial difficulties of insurance companies (EventID 22996), the Registered Pension Schemes (Authorised Member Payments) Regulations 2023 was published on legislation.gov.uk, the official journal of the UK.
The regulations simply provide for the tax treatment of any payments received from the insurer – or better the Financial Services Compensation Scheme (FSCS) via the insurance undertaking – resulting from the write-down of insurance policies. Specifically, such payments are to be treated as authorized payments under section 164(1)(f) of the Finance Act 2004 and thus are not subject to unauthorised payments tax charges.
Furthermore, for purposes of the Income Tax (Earnings and Pensions) Act 2003, such payments are considered pension „accruing in the tax year in which they were paid“.