Part 1 Introductory

Citation, commencement and effect

1.—(1) These Regulations may be cited as the Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) Regulations 2026.

(2) These Regulations come into force on 14th July 2026 and have effect so as to modify enactments in their application in relation to a relevant person(2).

(3) Regulations 3, 4 and 14 have effect as if, when the provisions which they amend were made, those provisions contained the amendments made by these Regulations.

(4) Regulations 5 to 8 have effect for the tax year 2023 - 24 and subsequent tax years.

(5) Regulations 9 to 12 and 15 have effect for the tax year 2014 - 15 and subsequent tax years.

Interpretation

2.—(1) In these Regulations—

“ the 2023 Regulations ” means the Public Service Pensions Schemes (Rectification of Unlawful Discrimination) (Tax) Regulations 2023 ( 3 );

“ the 2023 (No. 2) Regulations ” means the Public Service Pensions Schemes (Rectification of Unlawful Discrimination) (Tax) (No. 2) Regulations 2023 ( 4 ).

(2) Other expressions used in these Regulations have the same meaning as in Part 4 of FA 2004 (pension schemes etc), the 2023 Regulations, the 2023 (No. 2) Regulations and PSPJOA 2022(5).

Part 2 Amendment of the 2023 Regulations

Amendment of regulation 8 of the 2023 Regulations

3.—(1) Regulation 8 of the 2023 Regulations (Chapter 1 schemes and judicial 2015 schemes: operation of scheme pays for remedy years) is amended as follows.

(2) In paragraph (3), sub-paragraph (b), for paragraph (i) substitute—

“(i)for everything before sub-paragraph (a) there were substituted—

“(3) The individual may give a notice to the scheme administrator of the Chapter 1 scheme or the judicial 2015 scheme (within the meaning of Chapter 1 or Chapter 2 of Part 1 of the Public Service Pensions and Judicial Offices Act 2022), or to His Majesty’s Revenue and Customs, by digital means, for onward transmission to the scheme administrator, specifying that the individual and the scheme administrator are to be jointly and severally liable in respect of so much of the annual allowance charge arising in the case of the individual as—”.”.

(3) After paragraph (3), sub-paragraph (e), insert—

“(f)for the purposes of subsection (7), a notice which is given by the individual to HMRC(6) by digital means is treated as having been received by the scheme administrator when HMRC send the notice to the scheme administrator.”.

(4) For paragraph (4) substitute—

“(4) In the application of section 237BA of FA 2004 (time limit for notices under section 237B)(7) in relation to a scheme pays notice given under section 237B of FA 2004(8) as that section applies by virtue of paragraph (2)(b)—

(a)the reference in subsection (2) of that section to 31st July is to be read as a reference to 6th July 2027;

(b)for the purposes of subsection (2) of that section, a scheme pays notice which is given by the individual to HMRC by digital means is treated as having been given to the scheme administrator at the same time.

(4ZA) In the application of section 254 of FA 2004 (accounting for tax by scheme administrators)(9) in relation to a scheme pays notice given under section 237B of FA 2004 as that section applies by virtue of paragraph (2)(b), for the purposes of subsection (7A)(b), a scheme pays notice which is given by the individual to HMRC by digital means is treated as having been received by the scheme administrator when HMRC send the notice to the scheme administrator.”.

(5) In paragraph (4A), in sub-paragraph (c), omit “5th July 2030 or, where the condition in paragraph (5) is met,”.

(6) Omit paragraphs (5) and (6).

Amendment of regulation 9 of the 2023 Regulations

4.—(1) Regulation 9 of the 2023 Regulations (Chapter 1 schemes: operation of scheme pays for 2022-23) is amended as follows.

(2) In sub-paragraph (2)(b), for everything before the text to be treated as substituted for paragraph (a), substitute—

“(b)subsection (3) has effect as if—

(i)in the opening words of that subsection, after “the individual may give a notice to the scheme administrator of the pension scheme” there were inserted “, or to His Majesty’s Revenue and Customs, by digital means, for onward transmission to the scheme administrator,”; and

(ii)for paragraph (a) there were substituted—”.

(3) In paragraph (2), after sub-paragraph (2)(e) insert—

“(f)for the purposes of subsection (7), a notice which is given by the individual to HMRC by digital means is treated as having been received by the scheme administrator when HMRC send the notice to the scheme administrator.”.

(4) For paragraph (3) substitute—

“(3) In the application of section 237BA of FA 2004 in relation to a scheme pays notice given in relation to a Chapter 1 scheme for the tax year 2022-23 by an individual who has any remediable service in any earlier tax year—

(a)the reference in subsection (2) of that section to 31st July is to be read as a reference to 6th July 2027; and

(b)for the purposes of subsection (2) of that section a scheme pays notice which is given by the individual to HMRC by digital means is treated as having been given to the scheme administrator at the same time.

(3ZA) In the application of section 254 of FA 2004 (accounting for tax by scheme administrators) in relation to a scheme pays notice given in relation to a Chapter 1 scheme for the tax year 2022-23 by an individual who has any remediable service in any earlier tax year, for the purposes of subsection (7A)(b), a scheme pays notice which is given by the individual to HMRC by digital means is treated as having been received by the scheme administrator when HMRC send the notice to the scheme administrator.”.

(5) In paragraph (3A), in sub-paragraph (c), omit the words “5th July 2030 or, where the condition in paragraph (4) is met,”.

(6) Omit paragraphs (4) and (5).

Part 3 Immediate Detriment - Judicial Schemes

Meaning of “immediate detriment remedy”

5. For the purposes of this Part, an immediate detriment remedy has been obtained in relation to a person’s remediable service in a judicial office if either of the conditions in section 68 of PSPJOA 2022 (whether an “immediate detriment remedy” has been obtained) is met.

Modification of regulation 15 of the 2023 Regulations

6.—(1) Regulation 15 of the 2023 Regulations (judicial schemes and local government schemes: administrative provisions relating to scheme pays) is modified as follows.

(2) Sub-paragraph (e) of paragraph (1) applies in relation to a person’s remediable service( 10 ) in a judicial office where an immediate detriment remedy has been obtained in relation to that service as if, for the words “a relevant rectification provision” there were substituted “the application of Part 3 of the Judicial Pensions (Remediable Service etc.) Regulations 2023 (provision where an immediate detriment remedy has already been obtained) ( 11 )” .

Modification of regulation 42 of the 2023 Regulations

7.—(1) Regulation 42 of the 2023 Regulations (transfers from PPA in accordance with PSPJOA 2022 ignored) is modified as follows.

(2) Sub-paragraph (b) of paragraph (2) applies in relation to a person’s remediable service in a judicial office where an immediate detriment remedy has been obtained in relation to that service as if, for the words “ section 41 of that Act (transfers from partnership pension accounts) ” there were substituted “ regulation 16 of the Judicial Pensions (Remediable Service etc.) Regulations 2023 (partnership pension account: requirement to transfer and surrender rights)” .

Modification of regulation 43 of the 2023 Regulations

8.—(1) Regulation 43 of the 2023 Regulations (transfers from PPA in accordance with PSPJOA 2022 treated as recognised transfers) is modified as follows.

(2) Sub-paragraph (b) of paragraph (2) applies in relation to a person’s remediable service in a judicial office where an immediate detriment remedy has been obtained in relation to that service as if, for the words “ section 41 of that Act (requirement to transfer and surrender PPA rights) ” there were substituted “ regulation 16 of the Judicial Pensions (Remediable Service etc.) Regulations 2023 (partnership pension account: requirement to transfer and surrender rights)” .

Part 4 Armed Forces

Interpretation of this Part

9. In this Part—

“ 2005 Order ” means the Armed Forces Pension Scheme Order 2005 ( 12 );

“ AFPS 1975 ” means the occupational pension scheme established by Schedules 1 and 3 to—

as the case may be;

“ AFPS 1975 benefits ” means benefits under the AFPS 1975;

“ AFPS 2005 ” means the occupational pension scheme arrangements for members of the regular forces set out in Schedules 1, 2 and 3 to the 2005 Order;

“ earlier service ” has the meaning given by paragraph 18 of Part 4 of Schedule 3 to the 2005 Order;

“ EDP 2015 benefits ” means benefits under the EDP 2015 Scheme;

“ EDP 2015 Scheme ” means the scheme established by Part 2 of the Armed Forces Early Departure Payments Scheme Regulations 2014 ( 16 );

“ employer-financed retirement benefits scheme ” has the meaning given in section 393A of ITEPA 2003( 17 );

“ Pensions Tax Acts ” means any enactment relating to the taxation of benefits payable from a pension scheme (within the meaning of section 150(1) of FA 2004) and includes any provisions of the Income Tax Acts which relate to the taxation of such benefits;

“ section 6 election ” means an election given in accordance with section 6 of PSPJOA 2022;

“ section 10 election ” means an election given in accordance with section 10 of PSPJOA 2022.

AFPS 1975: election for new scheme benefits

10.—(1) This regulation applies where—

(a)a section 6 election or a section 10 election is made in relation to an individual’s remediable service under the AFPS 1975; and

(b) as a result of that election, new scheme benefits( 18 ) which are equivalent to EDP 2015 benefits are payable in relation to that individual’s remediable service under the AFPS 1975 (“EDP 2015 equivalent benefits”).

(2) For the purposes of the Pensions Tax Acts—

(a) EDP 2015 equivalent benefits are to be treated as being payable from a separate part of the AFPS 1975 (“the separate part”);

(b)the separate part—

(i)is to be treated as an employer-financed retirement benefits scheme which is only liable to pay EDP 2015 equivalent benefits; and

(ii)is to be ignored for the purposes of applying Part 4 of FA 2004 to the AFPS 1975.

(3) EDP 2015 equivalent benefits which are paid in the form of a lump sum are to be treated as a lump sum provided under the EDP 2015 Scheme for the purposes of section 640A of ITEPA 2003 (lump sums provided under armed forces early departure scheme)(19).

AFPS 2005: election for new scheme benefits

11.—(1) This regulation applies where—

(a)Part 4 of Schedule 3 to the 2005 Order applies to or in respect of an individual in accordance with paragraph 18 of that Part;

(b)a section 6 election is made in relation to an individual’s remediable service under the AFPS 2005; and

(c) as a result of that election, benefits which are equivalent to AFPS 1975 benefits are payable in relation to that individual’s earlier service from the AFPS 2005 (“AFPS 1975 equivalent benefits”) in accordance with paragraph 19 of Part 4 of Schedule 3 to the 2005 Order.

(2) The normal minimum pension age(20) in relation to AFPS 1975 equivalent benefits is treated as being the protected pension age which would have applied to that individual in relation to the AFPS 1975 under paragraph 22 of Schedule 36 to FA 2004(21), disregarding the operation of Part 4 of Schedule 3 to the 2005 Order.

Part 5 Miscellaneous

Minor benefits: trivial commutation lump sum death benefit

12.—(1) Paragraph (2) applies where—

(a)an individual (D) has been paid a trivial commutation lump sum death benefit(22),

(b) as a result of the operation of a relevant rectification provision( 23 ), an amount by way of lump sum (“the additional lump sum”) has become payable to D or to D’s personal representative under a registered pension scheme( 24 ),

(c)D has died without having received the additional lump sum,

(d)the additional lump sum is paid to D’s personal representative, and

(e)the additional lump sum would have been a trivial commutation lump sum death benefit if—

(i)D had been alive when it was paid, and

(ii)it had been paid to D.

(2) The additional lump sum is to be treated as—

(a)falling within section 164(1) of FA 2004 (authorised member payments)(25), and

(b)a trivial commutation lump sum death benefit paid under a registered pension scheme for the purposes of Part 9 of ITEPA 2003 (pension income)(26).

Voluntary scheme pays - payment of tax where request served

13.—(1) This regulation applies where—

(a)a specified individual(27) is liable to an annual allowance charge, or to such charge in an increased amount, as a result of the operation of a relevant rectification provision, and

(b)the scheme administrator(28) has, in response to a request(29) from the individual, at any time agreed to pay an amount in respect of the annual allowance charge(30) or the increase to such charge.

(2) This regulation also applies where—

(a)a specified individual is liable to an annual allowance charge in respect of the tax year 2022-23, and

(b)the scheme administrator has, in response to a request from the individual, at any time agreed to pay an amount in respect of the annual allowance charge.

(3) The amount of the annual allowance charge which the scheme administrator has agreed to pay must be paid no later than the end of the period of 45 days beginning with the day immediately following the end of the quarter in which the scheme administrator receives the request mentioned in paragraph (1)(b) or (2)(b).

(4) A request mentioned in paragraph (1)(b) or (2)(b) which is given by the specified individual to HMRC by digital means is treated as having been received by the scheme administrator when HMRC send the request to the scheme administrator.

(5) In this regulation, “ quarter ” means each period of 3 months ending with 31st March, 30th June, 30th September or 31st December.

Amendment of regulation 32 of the 2023 (No. 2) Regulations

14.—(1) Regulation 32 of the 2023 (No. 2) Regulations (specified information: due date for information)(31) is amended as follows.

(2) For paragraph (3) substitute—

“(3) Where a scheme administrator provides a pension savings statement to or in respect of the specified individual on or after 1st November 2024, the due date for information is—

(a)the date which is three months after the date on which that statement is provided, or

(b)where the specified individual dies within the period of three months beginning with the date on which that statement is provided, the date three months after the date of death.”.

(3) For paragraph (8) substitute—

“(8) Where a scheme administrator provides a pension savings statement or a benefit crystallisation event statement to or in respect of the specified individual on or after 1st November 2026 the due date for information is—

(a)the date which is three months after the date on which that statement is provided, or

(b)where the specified individual dies within the period of three months beginning with the date on which that statement is provided, the date three months after the date of death.”.

Excess teacher service

15. —(1) This regulation applies where the relevant Chapter 1 legacy scheme( 32 ) in relation to the excess teacher service( 33 ) of an individual (“ P ”) is the local government new scheme( 34 ) by virtue of sections 2(1) and 4(4) of PSPJOA 2022.

(2) A final salary uplift to which P is or may be entitled is to be ignored for the purposes of determining P’s pension input amounts(35) for any pension input period(36).

(3) In this regulation “ final salary uplift ” means an increase in the benefits payable to P under regulations 4A to 4V of the Local Government Pension Scheme (Transitional Provisions, Savings and Amendment) Regulations 2014 ( 37 ).