The Taxation of Pension Schemes (Consequential Amendments of Occupational and Personal Pension Schemes Legislation) Order 2006

Amendment of the Pension Sharing (Pension Credit Benefit) Regulations 2000

18.—(1) Amend the Pension Sharing (Pension Credit Benefit) Regulations 2000(1) as follows.

(2) In regulation 3 (commutation of the whole of pension credit benefit)—

(a) in paragraph (1) omit “paragraphs (3) and (4) and”;

(b) for paragraph (2), substitute—

“(2) The circumstances described in this paragraph are that the lump sum payment is permitted by the lump sum rule in section 166 of the Finance Act 2004, and either—

(a) qualifies as a serious ill-health lump sum for the purposes of paragraph 4 of Part 1 of Schedule 29 to that Act; or

(b) qualifies as a trivial commutation lump sum for the purposes of paragraph 7 of Part 1 of that Schedule.”; and

(c) omit paragraphs (3) and (4).

(3) In regulation 4 (commutation of part of pension credit benefit)—

(a) in sub-paragraph (b) of paragraph (1), for “approval or” to the end of that sub-paragraph substitute “the registration or continuing registration of the scheme under section 153 of the Finance Act 2004.”; and

(b) omit paragraph (4).

(4) In regulation 21 (requirements of other pension arrangements)—

(a) in sub-paragraph (c) of paragraph (1), omit “any of sub-paragraphs (a) to (e) of”, and

(b) for paragraph (2) substitute—

“(2) The kind of scheme mentioned in paragraph (1)(c) is a scheme which is registered under section 153 of the Finance Act 2004.”.

(1)

S.I. 2000/1054, to which there are amendments not relevant to these Regulations.