Trivial commutation lump sum: additional lump sum paid to memberU.K.
20.—(1) Paragraphs (2) to (4) apply where—
(a)an individual has been paid a trivial commutation lump sum (“the original TCLS”),
(b)as a result of a relevant rectification provision, the individual has acquired rights under a registered pension scheme, and
(c)the individual is paid a lump sum (“the top-up lump sum”) which, disregarding—
(i)paragraph 7(1)(a) of Schedule 29 to FA 2004 (requirement that no previous trivial commutation lump sum has been paid), and
(ii)paragraph 7(1)(b) of that Schedule (maximum value on commutation date),
would be a trivial commutation lump sum.
(2) Subject to paragraph (3), the top-up lump sum is to be treated as a trivial commutation lump sum.
(3) Paragraph (2) does not apply if—
(a)the top-up lump sum exceeds £10,000, and
(b)the aggregate of—
(i)the top-up lump sum, and
(ii)the value of the individual’s pension rights on the nominated date(1) in relation to the original TCLS (as determined under paragraph 7(5) of Schedule 29 to FA 2004),
exceeds £30,000.
(4) Regulation 3 of RPS(AP)R 2009 (commutation payments) does not apply in relation to the top-up lump sum.
“Nominated date” is defined in paragraph 7(3) of Schedule 29 to FA 2004.