PATHways 170

HMRC newsletters

HM Revenue & Customs (HMRC) has published two editions of its Pensions schemes newsletter in March 2025.

Pensions schemes newsletter 167

Pensions schemes newsletter 167 was published on 3 March 2025. It contains articles on:

• the need for administrators to submit their 2024-25 pension scheme returns on the Managing pension schemes service, as this function will no longer be available on the Pension schemes online service, and details of how to migrate to the newer service;
• details of how to report a pension commencement excess lump sum or stand-alone lump sum through Real Time Information, including issuing the member with a P45 even if they have a continuing source of pension income from the scheme; and
• notification that HMRC will be writing to the managers of all QROPS based in the European Economic Area (EEA) and asking them to confirm their regulatory status. Schemes will also be asked if they are established in a country or territory with which the UK has a Double Tax Agreement providing for exchange of information or a Tax Information Exchange Agreement.  This is a result of the conditions for schemes established in the EEA being brought into line with those for the rest of the world from 6 April 2025.  These changes were contained in the Finance Act 2025, which gained Royal Assent on 20 March 2025.  Schemes which do not respond or confirm they do not meet these conditions will cease to be a QROPS.

Pensions schemes newsletter 168

Pensions schemes newsletter 168 was published by HMRC on 27 March 2025 and contains information on:

• the deadline for applications for fixed protection 2016 and individual protection 2016, which was 5 April 2025.  The latest deadline for applying for international or pension credit enhancements was also 5 April 2025;
• where the managers of QROPS schemes asked to confirm they meet the EEA conditions described in the previous newsletter do not respond by 7 May 2025, the scheme will be removed from HMRC’s ROPS list and will be updated by 15 May 2025; and
• how to file the 2024-25 pension scheme return on the Managing pension schemes service.

TPR updates

Data strategy published

The Pensions Regulator (TPR) has published its data strategy, part of its digital, data and technology strategy which aims ‘to drive adoption of the latest technologies and standard for data’.  This includes engaging skilled data professionals and considering the risk and opportunities presented by artificial intelligence.

The three key areas TPR intend to focus on are:

• Building strong foundations.  This involves raising the standards for data quality and management.  Open standards for data will help TPR more easily collect, analyse and interpret high-quality data for better decision-making.
• Taking a wider data approach.  It intends to create an internal data ‘marketplace’ where TPR staff can access data from a central location which also feeds into the government’s National Data Library.
• Focus on adding value.  This means that TPR will collect data which directly relates to good saver outcomes and supports efficient regulation whilst fostering innovation in the pensions industry.

Response to Government’s new approach to regulation

TPR responded on 28 March 2025 to the Government’s recent policy announcements which aimed to ‘overhaul our regulatory system’ in order to support economic growth.  Alongside a speech delivered by TPR’s CEO Nausicaa Delfas, it has published a response to the Government, setting out its role in supporting and overseeing the workplace pensions system.

The letter highlights TPR’s views on the changing nature of the UK pensions landscape and the link between retirement savings adequacy and sustainable growth in the UK economy.  It also lists TPR’s five measurable commitments to foster sustainable growth:

• increasing the value of pension funds;
• enabling productive investment;
• reducing unnecessary regulatory burden and releasing funds for investment;
• driving growth through data and digital enablement; and
• supporting market innovation.