The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024

Chapter 1 of Part 11 of ITEPA 2003

4.—(1) In Chapter 1 of Part 11 of ITEPA 2003 (pay as you earn: introduction), section 683 (PAYE income)(1) is amended as follows.

(2) In subsection (3)—

(a) in the words before the list, for “(3C)” substitute “(3D)”;

(b) in the list, for the entries for sections 636B and 636C substitute—

• “section 637B (tax treatment of pension commencement excess lump sums),

• section 637G (tax treatment of trivial commutation lump sums and winding-up lump sums),

• section 637N (trivial commutation lump sum death benefits).”. (2)

(3) In subsection (3C)—

(a) for “section 636A(1A) to (1C) or (4ZA)” substitute “Chapter 15A of Part 9 (pension income: lump sums under registered pension schemes)”;

(b) for “paragraph 1(3)(da) or (db)” substitute “paragraph 1(3)(e)”.

(4) After subsection (3C) insert—

“(3D) “PAYE pension income” for a tax year does not include any amount to which section 579A applies by virtue of any of the following provisions—

• section 637H(2) (certain defined benefits lump sum death benefits),

• section 637I(2) (certain pension protection lump sum death benefits),

• section 637J(2) (certain uncrystallised funds lump sum death benefits),

• section 637K(2) (certain annuity protection lump sum death benefits),

• section 637L(2) (certain drawdown pension fund lump sum death benefits),

• section 637M(2) (certain flexi-access drawdown lump sum death benefits).”.

(1)

Section 683 was amended by paragraph 14 of Schedule 31 to FA 2004, paragraph 60 of Schedule 10 to FA 2005 (c. 7), section 10 of FA (No. 2) 2005 (c. 22), paragraph 60 of Schedule 16 to FA 2011 (c. 11), paragraph 130 of Schedule 45 to FA 2013 (c. 29) and section 22 of FA (No. 2) 2015 (c. 33).

(2)

Sections 637, 637G and 637N were inserted by paragraph 41 of Schedule 9 to FA 2024.