The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 3) Regulations 2024

Schedule 29 to FA 2004

2.—(1) Schedule 29 to FA 2004 (registered pension schemes: authorised lump sums - supplementary)(1) is amended as follows.

(2) In paragraph 2C (definition of “the applicable amount” in certain cases)—

(a) in sub-paragraph (1)—

(i) in the opening words, after “relevant pension is” insert “a scheme pension under”;

(ii) in paragraph (a) omit “a scheme pension under”;

(b) in sub-paragraph (2)—

(i) in the opening words, for “sub-paragraph (3)” substitute “sub-paragraphs (3) and (4)”;

(ii) in the formula, in the numerator omit “- D”;

(iii) in the definition of B, for “revaluation” substitute “valuation”;

(iv) omit the definition of D;

(c) in sub-paragraph (3), for “subsection” substitute “sub-paragraph”;

(d) after sub-paragraph (3) insert—

“(4) For the purposes of sub-paragraph (2), any part of what would otherwise be A or C which represents rights attributable to a disqualifying pension credit is to be disregarded.”.

(3) For paragraph 8 (trivial commutation lump sum: value of member’s relevant crystallised pension rights on nominated date) substitute—

“8.— (1) The value of the member’s relevant crystallised pension rights on the nominated date is the aggregate of—

(a) the value of the member’s relevant crystallised pension rights on 5th April 2006, calculated in accordance with paragraph 10 of Schedule 36 (as if the member were the individual mentioned there), and

(b) if, at any time in the period beginning with 6th April 2006 and ending with the nominated date, the member has become entitled under a registered pension scheme to income withdrawal, a lifetime annuity or a scheme pension, the relevant capital amount, and

(c) if, at any time in the period beginning with 6th April 2006 and ending with the nominated date, the member has been paid a lump sum under a registered pension scheme, the amount of the lump sum.

(2) In sub-paragraph (1)(b) “the relevant capital amount” means—

(a) in relation to income withdrawal, the scheme pension capital value, as determined under paragraph 2A(3) and (4)(2);

(b) in relation to a lifetime annuity, the annuity purchase price, as determined under paragraph 2B(3) and (4);

(c) in relation to a scheme pension under a defined benefits arrangement or a collective money purchase arrangement, the amount given by the formula—

where B and C have the same meaning as they have for the purposes of paragraph 2C(2);

(d) in relation to a scheme pension under a money purchase arrangement that is not a collective money purchase arrangement, the scheme pension purchase price, as determined under paragraph 2D(3) and (4).”.

(1)

2004 c. 12. Paragraphs 2A to 2D of Schedule 29 were inserted by paragraph 26(5) of Schedule 9 to FA 2024. Paragraph 8 was amended by section 42(2) FA 2014 (c. 26). The existing paragraph 8 was substituted by paragraph 30 of Schedule 9 to FA 2024 and was amended by S.I. 2024/356. Section 38 of FA 2024 provides that a reference to “FA” followed by a year is to a Finance Act of that year; and that a reference to “F(No. 2)A” followed by a year is to Finance (No. 2) Act of that year.

(2)

Paragraphs 2A to 2D were substituted for paragraph 3 of Schedule 29 by paragraph 26 of Schedule 9 to FA 2024.