The Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) Regulations 2026

Explanatory note

Reproduced verbatim from the instrument as published on legislation.gov.uk (Crown Copyright, Open Government Licence v3.0). The note is prepared by the responsible government department and is not part of the instrument itself.

In this Explanatory Note, references to “FA” followed by a year are to a Finance Act of that year, references to “HMRC” are to the Commissioners for His Majesty’s Revenue and Customs, references to “ITEPA 2003” are to the Income Tax (Earnings and Pensions) Act 2003 (c. 1) and references to “PSPJOA 2022” are to the Public Service Pensions and Judicial Offices Act 2022 (c. 7) .

Part 1 of PSPJOA 2022 rectifies unlawful discrimination suffered by members of affected public service pension schemes.

Parts 2 to 5 of these Regulations make various modifications for the purposes of applying the correct tax treatment to public service pension schemes which are affected by the rectification of discrimination provisions contained in PSPJOA 2022. Modifications are made to enactments in their application in relation to a relevant person under the authority of section 11(2) and (3) of FA 2022 (c. 3) . Authority for the retrospective effect of certain modifications made by these Regulations is provided for by section 11(4)(a) of FA 2022.

Regulation 1 of these Regulations provides for citation, commencement and effect. The reason for the effective date of each regulation is included in the explanation of each regulation in this Explanatory Note.

Part 2 of these Regulations contains amendments to the Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) Regulations 2023 ( S.I. 2023/113 ) (“ the 2023 Regulations ”).

Regulation 3 amends regulation 8 of the 2023 Regulations, which modifies the operation of sections 237B and 237BA of FA 2004 and of regulations 2 and 4 of the Registered Pension Schemes (Notice of Joint and Several Liability for the Annual Allowance Charge) Regulations 2011 ( S.I. 2011/1793 ) as those provisions apply to an individual with remediable service in a tax year which is pensionable service under a Chapter 1 scheme or a judicial 2015 scheme. The modifications apply where, as a result of a relevant rectification provision, the individual’s liability for an annual allowance charge in a tax year increases. The amendments allow members to submit scheme pays notices either directly to the scheme administrator or digitally to HMRC for onward transmission to the scheme administrator. If given digitally to HMRC, the notice is treated as being given to the scheme administrator at the same time for the purposes of the time limit for the scheme pays notice. However, for the purposes of determining the due date for payment of the annual allowance charge by the scheme administrator in accordance with section 254(7A) of FA 2004, the notice is treated as being given to the scheme administrator when HMRC send it to them. For members who were active or deferred on 1st October 2023, the deadline for giving such notices is extended to 6th July 2027 and the deadline for amending such notices is extended to 5th July 2032.

“ Relevant rectification provision ” has the meaning given in regulation 2 of the 2023 Regulations. “Active member” and “deferred member” have the meanings given in section 109 of PSPJOA 2022.

Regulation 4 amends regulation 9 of the 2023 Regulations, which modifies the operation of sections 237B and 237BA of FA 2004 and of regulations 2 and 4 of S.I. 2011/1793 as those provisions apply in relation to the tax year 2022-23 and in relation to an individual with remediable service in any earlier year in a Chapter 1 scheme. The modifications apply where an individual has a liability for an annual allowance charge in the tax year 2022-23. The amendments allow members to submit scheme pays notices either directly to the scheme administrator or digitally to HMRC for onward transmission to the scheme administrator. If given digitally to HMRC, the notice is treated as being given to the scheme administrator at the same time for the purposes of the time limit for the scheme pays notice. However, for the purposes of determining the due date for payment of the annual allowance charge by the scheme administrator in accordance with section 254(7A) of FA 2004, the notice is treated as being given to the scheme administrator when HMRC send it to them. For members who were active or deferred on 1st October 2023, the deadline for giving such notices is extended to 6th July 2027 and the deadline for amending such notices is extended to 5th July 2032.

Regulations 3 and 4 have effect as if, when regulations 8 and 9 of the 2023 Regulations were made, those regulations contained the amendments made by regulations 3 and 4 of these Regulations.

Part 3 of these Regulations makes provision about the treatment of an individual’s remediable service in a judicial office in relation to which an immediate detriment remedy has been obtained (“judicial immediate detriment remediable service”). The modifications are necessary as the statutory provisions governing the treatment of judicial immediate detriment remediable service are contained in Part 3 of the Judicial Pensions (Remediable Service etc.) Regulations 2023 ( S.I. 2023/766 ) (the “ Judicial Regulations ”) rather than Chapter 2 of Part 1 of PSPJOA 2022.

Regulation 5 specifies the circumstances in which an immediate detriment remedy has been obtained in relation to a person’s remediable service in a judicial office for the purposes of Part 3.