- Latest available (Revised)
- Point in Time (19/03/2014)
- Original (As enacted)
Version Superseded: 17/12/2014
Point in time view as at 19/03/2014.
Income Tax (Earnings and Pensions) Act 2003, CHAPTER 15A is up to date with all changes known to be in force on or before 25 August 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
Changes and effects yet to be applied by the editorial team are only applicable when viewing the latest version or prospective version of legislation. They are therefore not accessible when viewing legislation as at a specific point in time. To view the ‘Changes to Legislation’ information for this provision return to the latest version view using the options provided in the ‘What Version’ box above.
Textual Amendments
F1Pt. 9 Ch. 15A inserted (6.4.2006) by Finance Act 2004 (c. 12), s. 284(1), Sch. 31 para. 11 (with Sch. 36)
(1)No liability to income tax arises on a lump sum paid under a registered pension scheme if the lump sum is—
(a)a pension commencement lump sum,
(b)a serious ill-health lump sum [F2paid to a member who has not reached the age of 75],
(c)a refund of excess contributions lump sum,
[F3(ca)a transitional 2013/14 lump sum,]
(d)a defined benefits lump sum death benefit [F4paid in respect of a member who had not reached the age of 75 at the date of the member’s death] , [F5or]
(e)an uncrystallised funds lump sum death benefit, [F6paid in respect of such a member] F7...
F7(f). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2)But subsection (1) does not limit the operation of sections 214 to 226 of FA 2004 (lifetime allowance charge).
(3)A short service refund lump sum under a registered pension scheme is subject to income tax in accordance with section 205 of FA 2004 (charge to tax on scheme administrator in respect of such a lump sum) but not otherwise.
[F8(3A)A serious ill-health lump sum which is paid under a registered pension scheme to a member who has reached the age of 75 is subject to income tax in accordance with section 205A of FA 2004 (charge to tax on scheme administrator in respect of such a lump sum) but not otherwise.]
(4)A lump sum under a registered pension scheme which is—
[F9(za)a defined benefits lump sum death benefit paid in respect of a member who had reached the age of 75 at the date of the member’s death,]
(a)a pension protection lump sum death benefit,
[F10(aa)an uncrystallised funds lump sum death benefit paid in respect of a member who had reached the age of 75 at the date of the member’s death,]
(b)an annuity protection lump sum death benefit, or
[F11(c)a drawdown pension fund lump sum death benefit,]
is subject to income tax in accordance with section 206 of FA 2004 (charge to tax on scheme administrator in respect of such lump sum death benefits) but not otherwise.
[F12(4A)In the case of a registered pension scheme which is a split scheme for the purposes of the Registered Pensions Schemes (Splitting of Schemes) Regulations 2006, subsections (3) and (4) shall have effect as if the references to the scheme administrator were to the sub-scheme administrator (within the meaning of those Regulations).]
(5)A lifetime allowance excess lump sum is chargeable to income tax in accordance with sections 214 to 226 of FA 2004 (lifetime allowance charge) but not otherwise.
(6)In this section—
“lifetime allowance excess lump sum”,
“pension commencement lump sum”,
“refund of excess contributions lump sum”,
“serious ill-health lump sum”, F13...
“short service refund lump sum”, [F14and
“ transitional 2013/14 lump sum”]
have the same meaning as in section 166 of FA 2004 (see Part 1 of Schedule 29 to that Act).
(7)In this section—
“annuity protection lump sum death benefit”,
“defined benefits lump sum death benefit”,
[F15“drawdown pension fund lump sum death benefit”,]
“pension protection lump sum death benefit”, [F16and]
F17...
“uncrystallised funds lump sum death benefit”, F18...
F18...
have the same meaning as in section 168 of FA 2004 (see Part 2 of Schedule 29 to that Act).
Textual Amendments
F2Words in s. 636A(1)(b) inserted (with effect in accordance with Sch. 16 paras. 85, 102 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 42(2)(a)
F3S. 636A(1)(ca) inserted (19.3.2014) by Finance Act 2014 (c. 26), Sch. 5 paras. 5(3)(a), 15
F4Words in s. 636A(1)(d) inserted (with effect in accordance with Sch. 16 paras. 85, 103 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 42(2)(b)
F5Word in s. 636A(1)(d) inserted (with effect in accordance with Sch. 19 para. 29(3) of the amending Act) by Finance Act 2007 (c. 11), Sch. 19 para. 28(2)(a)
F6Words in s. 636A(1)(e) inserted (with effect in accordance with Sch. 16 paras. 85, 103 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 42(2)(c)
F7S. 636A(1)(f) and word repealed (with effect in accordance with Sch. 19 para. 29(3) of the amending Act) by Finance Act 2007 (c. 11), Sch. 19 para. 28(2)(b), Sch. 27 Pt. 3(1)
F8S. 636A(3A) inserted (with effect in accordance with Sch. 16 paras. 85, 102 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 42(3)
F9S. 636A(4)(za) inserted (with effect in accordance with Sch. 16 paras. 85, 103 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 42(4)(a)
F10S. 636A(4)(aa) inserted (with effect in accordance with Sch. 16 paras. 85, 103 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 42(4)(b)
F11S. 636A(4)(c) substituted (with effect in accordance with Sch. 16 paras. 85, 103 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 42(4)(c)
F12S. 636A(4A) inserted by 2004 c. 12, Sch. 31 para. 11 (as amended (6.4.2006) by The Registered Pension Schemes (Splitting of Schemes) Regulations 2006 (S.I. 2006/569), regs. 1(1), 5(1)(2))
F13Word in s. 636A(6) omitted (19.3.2014) by virtue of Finance Act 2014 (c. 26), Sch. 5 paras. 5(3)(b), 15
F14Words in s. 636A(6) inserted (19.3.2014) by Finance Act 2014 (c. 26), Sch. 5 paras. 5(3)(b), 15
F15Words in s. 636A(7) inserted (with effect in accordance with Sch. 16 paras. 85, 103 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 42(5)(a)
F16Word in s. 636A(7) inserted (with effect in accordance with Sch. 16 paras. 85, 103 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 42(5)(b)
F17Words in s. 636A(7) repealed (with effect in accordance with Sch. 19 para. 29(3) of the amending Act) by Finance Act 2007 (c. 11), Sch. 19 para. 28(3), Sch. 27 Pt. 3(1)
F18Words in s. 636A(7) omitted (with effect in accordance with Sch. 16 paras. 85, 103 of the amending Act) by virtue of Finance Act 2011 (c. 11), Sch. 16 para. 42(5)(c)
Modifications etc. (not altering text)
C1S. 636A(1) modified (6.4.2006) by The Taxation of Pension Schemes (Transitional Provisions) Order 2006 (S.I. 2006/572), arts. 1(1), 6, 7(1)(2)
C2S. 636A(7) modified (6.4.2006) by The Taxation of Pension Schemes (Transitional Provisions) Order 2006 (S.I. 2006/572), arts. 1(1), 6, 7(1)(3)
C3S. 636A applied by S.I. 2009/1171, reg. 3A(2)(6) (as inserted (19.3.2014) by Finance Act 2014 (c. 26), Sch. 5 paras. 6, 15)
C4S. 636A(1)(2) applied (1.5.2010) by The Financial Assistance Scheme (Tax) Regulations 2010 (S.I. 2010/1187), regs. 1(1), 4
(1)This section applies if—
(a)a trivial commutation lump sum, or
(b)a winding-up lump sum,
is paid to a member of a registered pension scheme under the pension scheme.
(2)The member is to be treated as having taxable pension income for the tax year in which the payment is made equal to the amount of the lump sum.
(3)But if, immediately before the lump sum is paid, the member [F19has uncrystallised rights (within the meaning of section 212 of FA 2004) under any one or more arrangements under the pension scheme, the amount of the taxable pension income—
(a)if all his rights under the pension scheme are uncrystallised rights, is 75% of the lump sum, and
(b)otherwise, is reduced by 25% of the value of the uncrystallised rights calculated in accordance with that section.]
(4)In this section—
“trivial commutation lump sum”, and
“winding-up lump sum”,
have the same meaning as in section 166 of FA 2004 (see Part 1 of Schedule 29 to that Act).
Textual Amendments
F19Words in s. 636B(3) substituted (6.4.2006) by Finance Act 2005 (c. 7), Sch. 10 paras. 59, 64(1)
Modifications etc. (not altering text)
C5S. 636B modified (6.4.2006) by The Taxation of Pension Schemes (Transitional Provisions) Order 2006 (S.I. 2006/572), arts. 1(1), 37
C6S. 636B applied (with modifications) (6.4.2006) by Finance Act 2004 (c. 12), Sch. 36 para. 35(4) (with s. 283(5), Sch. 36)
C7S. 636B applied (with modifications) by S.I. 2009/1171, reg. 3A(4)(5) (as inserted (19.3.2014) by Finance Act 2014 (c. 26), Sch. 5 paras. 6, 15)
C8S. 636B applied (with modifications) by 2004 c. 12, Sch. 29 para. 11A(5)(6) (as inserted (19.3.2014) by Finance Act 2014 (c. 26), Sch. 5 paras. 5(2), 15)
(1)This section applies if—
(a)a trivial commutation lump sum death benefit, or
(b)a winding-up lump sum death benefit,
is paid to a person under a registered pension scheme.
(2)The person is to be treated as having taxable pension income for the tax year in which the payment is made equal to the amount of the lump sum.
(3)In this section—
“trivial commutation lump sum death benefit”, and
“winding-up lump sum death benefit”,
have the same meaning as in section 168 of FA 2004 (see Part 2 of Schedule 29 to that Act).]
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Point in Time: This becomes available after navigating to view revised legislation as it stood at a certain point in time via Advanced Features > Show Timeline of Changes or via a point in time advanced search.
Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.
Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.
Text created by the government department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Public Acts except Appropriation, Consolidated Fund, Finance and Consolidation Acts.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
Click 'View More' or select 'More Resources' tab for additional information including: