BN46 - Code of Practice 12: Circumstances in relation to the Material Detriment Test

Briefing Note posted on Jun 04, 2009

The Government has legislated to extend the “anti avoidance” powers of the Pensions Regulator to ensure that they remain fit for purpose. The Pensions Act 2008 introduces a new ground on which Contribution Notices can be issued, known as the “material detriment test”.

Following a consultation exercise, a draft Code of Practice covering this new provision has recently been laid before Parliament. Both the Code and the Regulator’s new power are expected to come into force in the Summer of 2009. However, the 2008 Act provides that the material detriment test will apply retrospectively from 14 April 2008.

This BBS briefing note summarises the new provisions.

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