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The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024

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Schedule 4 to FA 2016

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16.—(1) Schedule 4 to FA 2016 (pensions: lump sum allowance and lump sum and death benefit allowance: transitional provision)(1) is amended as follows.

(2) In paragraph 1 (“fixed protection 2016”), for sub-paragraph (2) substitute—

(2) Chapter 15A of Part 9 of ITEPA 2003 (pension income: lump sums under registered pension schemes) has effect in relation to the individual as if—

(a)the amount specified in section 637P of that Act (individual’s lump sum allowance) were £312,500, and

(b)the amount specified in section 637R of that Act (individual’s lump sum and death benefit allowance) were—

(i)if one or more lump sum and death benefit allowance enhancement factors operate in relation to the individual for the purposes of paragraph 20H of Schedule 36 to FA 2004, the individual’s enhanced lump sum and death benefit allowance (as determined under that paragraph of that Schedule), and

(ii)otherwise, £1,250,000.

(3) For the purposes of paragraph 20H of Schedule 36 to FA 2004, the individual’s “protected lump sum and death benefit allowance” is £1,250,000..

(3) In paragraph 9 (“individual protection 2016”)—

(a)in sub-paragraph (1)—

(i)in the words before paragraph (a), for “Sub-paragraph (2) applies” substitute “Sub-paragraphs (2) to (2B) apply”;

(ii)in paragraph (b), for “£1,000,000” substitute “£1,073,100”.

(b)for sub-paragraph (2) substitute—

(2) Chapter 15A of Part 9 of ITEPA 2003 (pension income: lump sums under registered pension schemes) has effect in relation to the individual as if the amount specified in section 637P of that Act (individual’s lump sum allowance) were the lower of—

(a)25% of the individual’s relevant amount, and

(b)£312,500.

(2A) Chapter 15A of Part 9 of ITEPA 2003 (pension income: lump sums under registered pension schemes) has effect in relation to the individual as if the amount specified in section 637R of that Act (individual’s lump sum and death benefit allowance) were the lower of—

(a)if one or more lump sum and death benefit allowance enhancement factors operate in relation to the individual for the purposes of paragraph 20H of Schedule 36 to FA 2004, the individual’s enhanced lump sum and death benefit allowance (as determined under that paragraph of that Schedule), and

(b)otherwise, the lower of—

(i)the individual’s relevant amount(2), and

(ii)£1,250,000.

(2B) For the purposes of paragraph 20H of Schedule 36 to FA 2004, the individual’s “protected lump sum and death benefit allowance” is the lower of—

(a)the individual’s relevant amount, and

(b)£1,250,000..

(1)

2016 c. 24. Sub-paragraph (2) of paragraph 1 and sub-paragraph (2) of paragraph 9 of Schedule 4 were substituted by paragraph 93 of Schedule 9 to FA 2024. Sub-paragraph (1) of paragraph 9 of Schedule 4 was amended by paragraph 93 of Schedule 9 to FA 2024.

(2)

The “individual’s relevant amount” is defined for these purposes in paragraph 9(4) of Schedule 4.

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