HMRC have published a newsletter explaining the changes that will need to be made such that pension scheme members receive tax relief based on their residency tax status. If the rate of income tax for Scotland diverges from the rate in the rest of the UK relief can be applied to the members’ contributions at the correct rate.
From January 2018 HMRC will advise pension scheme administrators of the tax residency status of their individual members on an annual basis.
The newsletter explains the transition to the secure data exchange service (SDES) which will be used for the two way communication between the scheme administrators and HMRC. SDES is a secure online service that allows businesses and HMRC to send and receive bulk information via the internet.