[F1227GWhen pension rights are first flexibly accessedU.K.
(1)References in sections 227B to 227F to when the individual first flexibly accesses pension rights are to the time, or the earlier or earliest of the times, given for that by the following subsections.
(2)If—
(a)the individual has a member's flexi-access drawdown fund in respect of an arrangement, and
(b)the fund came into being—
(i)as a result of sums or assets being designated on or after 6 April 2015 as available for the payment of drawdown pension, or
(ii)as a result of the operation of paragraph 8D(2) of Schedule 28,
the individual first flexibly accesses pension rights immediately before the first qualifying payment is made from the fund (see subsection (10)).
(3)If section 165(3A) applied in the individual's case to an arrangement at any time before 6 April 2015, the individual first flexibly accesses pension rights at the start of 6 April 2015.
(4)If—
(a)the individual has a member's drawdown pension fund in respect of an arrangement, and
(b)the sums and assets that make up the fund become newly-designated funds by the operation of paragraph 8B of Schedule 28,
the individual first flexibly accesses pension rights immediately before the first qualifying payment (see subsection (10)) is made from the individual's member's flexi-access drawdown fund in respect of the arrangement (whether that is the payment that triggers the operation of paragraph 8B of Schedule 28 or a subsequent payment).
(5)If—
(a)the individual has a member's drawdown pension fund in respect of an arrangement, and
(b)the sums and assets that make up the fund become newly-designated funds by the operation of paragraph 8C of Schedule 28,
the individual first flexibly accesses pension rights immediately before the first qualifying payment is made from the individual's member's flexi-access drawdown fund in respect of the arrangement (see subsection (10)).
(6)The individual first flexibly accesses pension rights immediately before the payment of the first uncrystallised funds pension lump sum paid to the individual.
(7)If the individual is entitled to payment of a lifetime annuity under a flexible annuity contract (see subsection (8)), the individual first flexibly accesses pension rights immediately before the first payment of the annuity is made.
(8)In subsection (7) “flexible annuity contract” means a contract for a lifetime annuity where—
(a)the annuity is within paragraph 3(1A) of Schedule 28, and
(b)the terms of the contract are such that there will or could be decreases in the amount of the annuity other than decreases from time to time allowed by regulations under paragraph 3(1)(d) of Schedule 28 (and any such regulations are to be treated as having effect for this purpose).
(9)If—
(a)the individual is entitled to payment of a scheme pension under a money purchase arrangement under a registered pension scheme,
(b)the individual became entitled to the scheme pension—
(i)on or after 6 April 2015, and
(ii)at a time when fewer than 11 other individuals were entitled to the present payment of a scheme pension, or dependants' scheme pension, under the registered pension scheme, and
(c)the scheme pension is not payable under an annuity contract treated under section 153(8) or (8A) as having become a registered pension scheme,
the individual first flexibly accesses pension rights immediately before the first payment of the scheme pension is made.
(10)In subsections (2), (4) and (5), a reference to a qualifying payment from a fund is a reference to—
(a)payment of income withdrawal from the fund, or
(b)payment of a short-term annuity purchased using sums or assets out of the fund,
but does not include payment at a time when the whole of the fund represents rights attributable to a disqualifying pension credit.
(11)In subsection (10) “disqualifying pension credit” is to be read in accordance with paragraph 2(3) and (4) of Schedule 29.]
Textual Amendments
F1Ss. 227B-227G inserted (17.12.2014) (with effect in accordance with Sch. 1 para. 65(2) of the amending Act) by Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 65(1)