Finance Act 2000

Income withdrawals: purchase of two or more annuities

11 (1) Amend section 634A as follows.

(2) After subsection (1) insert—

“(1A) The Board shall not refuse to approve a personal pension scheme by reason only that it makes provision for arrangements under the scheme which enable a member who makes such an election as is mentioned in subsection (1) above to apply different parts of the personal pension fund at different times in the purchase of different annuities satisfying the conditions in section 634 (whether commencing on the same day or on different days).”.

(3) In subsection (4) (which regulates income withdrawals by reference to the annual amount of the annuity purchasable on the relevant reference date etc) in paragraph (b) (which is inserted by paragraph 10(2)(b))—

(a) after “in the case of any subsequent valuation period,” insert “(i)”; and

(b) at the end add “, or

(ii) immediately after the last qualifying annuitisation,

whichever is the later”.

(4) After subsection (4) insert—

“(4A) For the purposes of subsection (4) above—

(a) “annuitisation” means the application of part of the personal pension fund in the purchase of an annuity satisfying the conditions in section 634; and

(b) an annuitisation is a “qualifying annuitisation”, in relation to any such period of twelve months as is mentioned in subsection (4) above, if it has taken place—

(i) in an earlier such period, but

(ii) since the relevant reference date.”.

(5) In subsection (5D) (which is inserted by paragraph 10) in paragraph (b), for “subsection (4)” substitute “subsections (4) and (4A)”.

(6) This paragraph has effect on and after 6th April 2001.