SCHEDULES

SCHEDULE 29U.K.Registered pension schemes: authorised lump sums—supplementary

Modifications etc. (not altering text)

C1Sch. 29 modified (6.4.2006) by The Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) Regulations 2006 (S.I. 2006/207), regs. 1(1), 15 (as amended: (13/8/2009) by S.I. 2009/2047, regs. 1(1), 2-10; (with effect in accordance with reg. 1(3) of the amending S.I.) by S.I. 2012/1795, regs. 1(1), 6; (with effect in accordance with Sch. 1 para. 96(16)(a) of the amending Act) by 2014 c. 30, Sch. 1 para. 96(3)-(14) (with Sch. 1 para. 96(16)(b)); and (for the tax year 2024-25 and subsequent tax years) by 2024 c. 3, Sch. 9 paras. 62(6), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4))

C2Sch. 29 modified by The Taxation of Pension Schemes (Transitional Provisions) Order 2006 (S.I. 2006/572), art. 23C (as inserted (1.6.2009) by S.I. 2009/1172, arts. 1, 3 (as amended (with effect in accordance with s. 42(9) of the amending Act) by Finance Act 2014 (c. 26), s. 42(5); and as amended by Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 72(1) (with Sch. 1 para. 72(2)(b)))

Part 1U.K.Lump sum rule

Modifications etc. (not altering text)

C4Sch. 29 Pt. 1 applied (with modifications) (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 11

Trivial commutation lump sumU.K.

7(1)For the purposes of this Part a lump sum is a trivial commutation lump sum if—U.K.

(a)it is paid when no trivial commutation lump sum has previously been paid to the member (by any registered pension scheme) or, if such a lump sum has previously been paid, before the end of the commutation period,

[F1(aa)it is paid in respect of a defined benefits arrangement, [F2or in respect of a collective money purchase arrangement,] [F3or in respect of a scheme pension payable by the scheme administrator to which the member has become entitled under a money purchase arrangement [F4that is not a collective money purchase arrangement] (an “in-payment money-purchase in-house scheme pension”), [F5or in respect of any combination of such arrangements and scheme pensions],]]

(b)on the nominated date, the value of the member’s pension rights does not exceed the commutation limit,

(c)it is paid when all or part of the member’s [F6lump sum allowance is available (see paragraph 12A)],

(d)it extinguishes [F7any entitlement to defined benefits [F8, and any entitlement to collective money purchase benefits,] [F9, and any entitlement to payments of in-payment money-purchase in-house scheme pensions,] that the member has] under the pension scheme, and

(e)it is paid when the member has reached [F10normal minimum pension age (or the ill-health condition is met)] F11....

(2)The commutation period is the period beginning with the day on which a trivial commutation lump sum is first paid to the member and ending 12 months after that day.

(3)The nominated date is the day within the period of three months ending with the first day of the commutation period nominated by the member (or, if no date is nominated, is the first day of the commutation period).

(4)The commutation limit is [F12£30,000].

[F13(4A)The Treasury may by order substitute for the amount for the time being specified in sub-paragraph (4) such larger amount as is specified in the order.]

(5)The value of the member’s pension rights on the nominated date is the aggregate of—

(a)the value of the member’s relevant crystallised pension rights on that date (calculated in accordance with paragraph 8), and

(b)the value of the member’s uncrystallised rights on that date (calculated in accordance with paragraph 9).

Textual Amendments

F1Sch. 29 para. 7(1)(aa) inserted (17.12.2014) (with effect in accordance with Sch. 1 para. 71(2) of the amending Act) by Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 71(1)(a)

F3Words in Sch. 29 para. 7(1)(aa) inserted (with effect in accordance with Sch. 5 para. 9 of the amending Act) by Finance Act 2016 (c. 24), Sch. 5 para. 7(2)

F6Words in Sch. 29 para. 7(1)(c) substituted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 30(1), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

F7Words in Sch. 29 para. 7(1)(d) substituted (17.12.2014) (with effect in accordance with Sch. 1 para. 71(2) of the amending Act) by Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 71(1)(b)

F9Words in Sch. 29 para. 7(1)(d) inserted (with effect in accordance with Sch. 5 para. 9 of the amending Act) by Finance Act 2016 (c. 24), Sch. 5 para. 7(3)

F10Words in Sch. 29 para. 7(1)(e) substituted (17.12.2014) (with effect in accordance with Sch. 1 para. 71(2) of the amending Act) by Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 71(1)(c)

F11Words in Sch. 29 para. 7(1)(e) omitted (with effect in accordance with Sch. 16 paras. 85, 102 of the amending Act) by virtue of Finance Act 2011 (c. 11), Sch. 16 para. 29

F12Sum in Sch. 29 para. 7(4) substituted (with effect in accordance with s. 42(8) of the amending Act) by Finance Act 2014 (c. 26), s. 42(1)

F13Sch. 29 para. 7(4A) inserted (with effect in accordance with Sch. 18 Pt. 2 of the amending Act) by Finance Act 2011 (c. 11), Sch. 18 para. 4(3)

Modifications etc. (not altering text)