Finance Act 1989

Part II U.K. Schemes Approved Before Passing of This Act

Interpretation U.K.

10 U.K. In this Part of this Schedule—

(a) “personal pension scheme” has the same meaning as in ChapterIV of Part XIV of the Taxes Act 1988, and

(b) references to approval of such a scheme do not include references toprovisional approval under regulations made under section 655(5) of that Act.

Lump sum to member U.K.

11 (1) This paragraph applies as regards arrangements made by a member of apersonal pension scheme approved by the Board before the day on which this Actis passed, if the arrangements are made by the member in accordance with thescheme on or after that day. U.K.

(2) The rules of the scheme shall have effect (notwithstanding anything inthem to the contrary) as if any limitation imposed on the maximum amountpayable to the member by way of lump sum, and imposed by reference to afraction of the total value of the benefits for him provided for by thearrangements, were imposed by reference to the same fraction of the differencebetween—

(a) the total value, at the time when the lump sum is paid, of the benefitsprovided for by the arrangements, and

(b) the value, at that time, of such of his rights under the scheme as areprotected rights for the purposes of the [F1 Pension Schemes Act 1993] or the [F2 Pension Schemes (Northern Ireland) Act 1993].

Textual Amendments

F1 Words in Sch. 7 para. 11(2)(b) substituted (7.2.1994) by 1993 c. 48, s. 190, Sch. 8 para.22 (with ss. 6(8), 164); S.I. 1994/86, art. 2

F2 Words in Sch. 7 para. 11(2)(b) substituted (7.2.1994) by 1993 c. 49, s. 184, Sch. 7 para.24; S.R. 1994/17, art. 2

12 (1) This paragraph applies where on or after the day on which this Act ispassed a lump sum becomes payable under a personal pension scheme approved bythe Board before that day. U.K.

(2) The rules of the scheme shall have effect (notwithstanding anything inthem to the contrary) as if any limitation imposed on the maximum amountpayable to a member by way of lump sum, and imposed by reference to a figure,did not apply.

(3) The reference in sub-paragraph (2) above to a limitation imposed on themaximum amount payable to a member by way of lump sum does not include areference to a limitation imposed on the maximum amount so payable out of atransfer payment.