15(1)For the purposes of this Part a lump sum death benefit is an uncrystallised funds lump sum death benefit if—U.K.
F1(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b)it is paid in respect of a money purchase arrangement,
F2(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(d)it is paid in respect of relevant uncrystallised funds[F3, and
(e)it is not a charity lump sum death benefit.]
[F4But, in a case where the member had not reached the age of 75 at the date of the member’s death, a lump sum death benefit is an uncrystallised funds lump sum death benefit only if it is paid before the end of the relevant two-year period.]
[F5(1A)The relevant two-year period” means the period of two years beginning with the earlier of the day on which the scheme administrator first knew of the member’s death and the day on which the scheme administrator could first reasonably be expected to have known of it.]
(2)“Relevant uncrystallised funds” means such of the sums and assets held for the purposes of the arrangement at the member’s death as—
(a)had not been applied for purchasing a scheme pension, a lifetime annuity, a dependants' scheme pension or a dependants' annuity, and
(b)had not been designated under the arrangement as available for the payment of [F6drawdown pension].
(3)But if an amount falling within sub-paragraph (1) exceeds the permitted maximum, the excess is not an uncrystallised funds lump sum death benefit.
(4)The permitted maximum is the aggregate of—
(a)the amount of the sums, and
(b)the market value of the assets,
which constitute the relevant uncrystallised funds immediately before the payment is made.
Textual Amendments
F1Sch. 29 para. 15(1)(a) omitted (with effect in accordance with Sch. 16 paras. 85, 103 of the amending Act) by virtue of Finance Act 2011 (c. 11), Sch. 16 para. 35(2)(a)
F2Sch. 29 para. 15(1)(c) omitted (with effect in accordance with Sch. 16 paras. 85, 103 of the amending Act) by virtue of Finance Act 2011 (c. 11), Sch. 16 para. 35(2)(a)
F3Sch. 29 para. 15(1)(e) and word inserted (with effect in accordance with Sch. 16 paras. 85, 103 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 35(2)(b)
F4Words in Sch. 29 para. 15(1) inserted (with effect in accordance with Sch. 16 paras. 85, 103 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 35(2)(c)
F5Sch. 29 para. 15(1A) inserted (with effect in accordance with Sch. 16 paras. 85, 103 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 35(3)
F6Words in Sch. 29 para. 15(2)(b) substituted (with effect in accordance with Sch. 16 paras. 85, 103 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 79(4)