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

The Registered Pension Schemes (Authorised Payments) Regulations 2009

5.—(1) The Registered Pension Schemes (Authorised Payments) Regulations 2009(1) are amended as follows.

(2) In regulation 5 (prescribed payments and taxation), in the opening words, for “Part 4” substitute “any of regulations 17 to 19”.

(3) After that regulation insert—

“5ZA.   A payment by a registered pension scheme that is described in regulation 19A or 19B of these Regulations—

(a) is a payment of a prescribed description for the purposes of section 164(1)(f) of the Finance Act 2004;

(b) shall be treated for the purposes of Part 9 of ITEPA 2003 as pension that—

(i) is paid to the recipient under a registered pension scheme; and

(ii) accrues in the tax year in which the payment is made.”.

(4) After regulation 19 (commencement lump sums paid after death) insert—

“Commencement lump sums paid in reliance on inaccurate transitional tax-free amount certificate

19A.— (1) A payment of the overpaid portion of a lump sum the whole of which is intended to represent a pension commencement lump sum, where the amount of the lump sum paid is calculated by reference to an amount specified on a transitional tax-free amount certificate.

(2) In paragraph (1), “the overpaid portion”, in relation to a lump sum, means so much of it as—

(a) was not a pension commencement lump sum, but

(b) would have been a pension commencement lump sum if the amount specified on the certificate had been accurate.

Other lump sums paid in reliance on inaccurate transitional tax-free amount certificate

19B.   A payment of a lump sum which is intended to represent a trivial commutation lump sum or a winding-up lump sum, where—

(a) the scheme administrator or insurance company acted in reliance on an amount specified on a transitional tax-free amount certificate when deciding that the lump sum was a lump sum of that description,

(b) the lump sum was not a lump sum of that description, and

(c) the lump sum would have been a lump sum of that description if the amount specified on the certificate had been accurate.”.

(1)

S.I. 2009/1171. Regulations 17 to 19 were amended by paragraph 42 of Schedule 9 to FA 2024.