Income Tax (Pension Amendments) (Guernsey) Law, 2001

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PROJET DE LOI

ENTITLED

The Income Tax (Pension Amendments) (Guernsey) Law, 2001

THE STATES, in pursuance of their resolution of the 11^th day of April, 2001[a], have approved the following provisions which, subject to the Sanction of Her Most Excellent Majesty in Council, shall have force of law in the islands of Guernsey and Herm.

Amendment of Law as to occupational pension schemes.

1. (1) In the Income Tax (Guernsey) Law, 1975, as amended[b] (hereinafter called "the Income Tax Law") -

(a) in paragraph (n) of section 150(2)[c] for the words "five years" substitute "two years";

(b) after paragraph (n) of section 150(2) insert the following additional paragraph -

"(na) in relation to -

(i) any scheme which is approved, or the rules of which are amended, in the calendar year 2002; and

(ii) any other scheme after the 1^st January, 2003;

each person to whom the scheme relates is entitled under the scheme, if he ceases to be a member of the scheme at a time when he has more than two years of qualifying service but has not reached normal retirement age, to choose between -

(A) a refund of his contributions (if any); or

(B) the making of a transfer payment into another approved scheme; or

(c) in paragraph (c) of section 150(2A)[d] in the definition of "transfer payment" for the words appearing after "approved by the Administrator," substitute the following -

"of -

(i) the deferred benefits which the person concerned is entitled to choose under the scheme concerned; or

(ii) in cases where the person concerned is not entitled, under the scheme concerned, to choose deferred benefits, the deferred benefits which he could have chosen had he been so entitled;".

Amendment of Law as to proprietary directors.

2. (1) In paragraph (a) of section 157A(9)[e] of the Income Tax Law, in the definition of "relevant earnings", after subparagraph (ii) add the following proviso -

"Provided always that the expression "relevant earnings" shall not include income arising in respect of emoluments -

(A) from the office of proprietary director of an investment company;

(B) from the termination thereof; or

(2) In section 158 of the Income Tax Law immediately before the definition of the expression "proprietary director" insert the following definition -

""investment company" has the meaning given by section 169;".

Citation.

3. This Law may be cited as the Income Tax (Pension Amendments) (Guernsey) Law, 2001.

Commencement.

4. This Law shall have effect, by virtue of the States' resolution of the 26^th September, 2001[f], under and subject to the provisions of the Taxes and Duties (Provisional Effect) (Guernsey) Law, 1992[g], on and after the 1^st January, 2002.

[a]	Article XIV of Billet d'État No. VI of 2001.
[b]	Ordres en Conseil Vol. XXV, p. 124; Vol. XXVI, pp. 146, 200 and 292; Vol. XXVII, pp. 84, 118, 200, 333 and 565; Vol. XXVIII, pp. 184, 278, 353 and 409; Vol. XXIX, p. 214; Vol. XXXI, pp. 406 and 473; Vol. XXXII, p. 307; No. IV of 1991; No. VI of 1992; Nos. IV and VIII of 1993; No. XXV of 1994; Nos. III and VII of 1995; No. V of 1996; Nos. IV and XXII of 1997; No. II of 1999; and No. IV of 2000.
[c]	Paragraph (n) of section 150(2) was inserted by section 2(1) of No. IV of 1991.
[d]	Section 150(2A) was inserted by section 2(2) of No. IV of 1991.
[e]	Section 157A was inserted by Vol. XXVIII, p. 278.
[f]	Article of Billet d'État No. of 2001.
[g]	Order in Council No. XI of 1992.