[F122B(1)Sub-paragraph (2) applies if—U.K.
(a)a dependant's drawdown pension fund in respect of an arrangement came into being before 6 April 2015,
(b)section 167(2A) did not apply to the arrangement immediately before 6 April 2015, and
(c)at a time on or after 6 April 2015, a payment—
(i)of dependants' income withdrawal from the fund, or
(ii)of a dependants' short-term annuity purchased using sums or assets out of the fund,
is made that (apart from sub-paragraph (2)) would breach the cap.
(2)The sums and assets that make up the fund immediately before the payment is made become newly-designated dependant funds immediately before the payment is made (so that the payment is made out of the dependant's flexi-access drawdown fund in respect of the arrangement and therefore is not part of the total capped by pension death benefit rule 4).
(3)For the purposes of sub-paragraph (1)(c), a payment of dependants' drawdown pension in respect of an arrangement is one that would breach the cap if, when its amount is added to the amounts of any dependants' drawdown pension in respect of the arrangement—
(a)paid—
(i)before it is made, but
(ii)in the same drawdown pension year in respect of the arrangement, or
(b)paid at the time it is made,
the total is greater than the cap set by pension death benefit rule 4 for that drawdown pension year.]
Textual Amendments
F1Sch. 28 paras. 22A-22D and cross-headings inserted (17.12.2014) (with effect in accordance with Sch. 1 para. 4(2) of the amending Act) by Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 4(1)