SCHEDULES
C1SCHEDULE 28Registered pension schemes: authorised pensions—supplementary
Part 2Pension death benefit rules
F1F2Nominees' annuity
Sch. 28 paras. 27A-27K and cross-headings inserted (17.12.2014) (with effect in accordance with Sch. 2 para. 3(2) of the amending Act) by Taxation of Pensions Act 2014 (c. 30), Sch. 2 para. 3(1)
Sch. 28 para. 27AA and cross-heading inserted (26.3.2015) by Finance Act 2015 (c. 11), Sch. 4 para. 3(2) (with Sch. 4 para. 3(4))
27AA
1
For the purposes of this Part an annuity payable to a nominee is a nominees' annuity if—
a
either—
i
it is purchased together with a lifetime annuity payable to the member and the member becomes entitled to that lifetime annuity on or after 6 April 2015, or
ii
it is purchased after the member's death, the member dies on or after 3 December 2014 and the nominee becomes entitled to the annuity on or after 6 April 2015,
b
it is payable by an insurance company, and
c
it is payable until the nominee's death or until the earliest of the nominee's marrying, entering into a civil partnership or dying.
2
For the purposes of sub-paragraph (1)(a) a nominees' annuity is purchased together with a lifetime annuity if the nominees' annuity is related to the lifetime annuity.
3
The Commissioners for Her Majesty's Revenue and Customs may by regulations make provision in relation to cases in which a nominees' annuity payable to a person (“the original nominees' annuity”) ceases to be payable and in consequence of that—
a
sums or assets (or both) are transferred from the insurance company to another insurance company and are applied—
i
towards the provision of another nominees' annuity (a “new nominees' annuity”) by the other insurance company, or
ii
otherwise, or
b
sums or assets are transferred to the relevant registered pension scheme.
4
The regulations may provide that—
a
in a case where a new nominees' annuity becomes payable, the new nominees' annuity is to be treated, to such extent as is prescribed by the regulations and for such of the purposes of this Part as are so prescribed, as if it were the original nominees' annuity, and
b
in any other case, the relevant registered pension scheme is to be treated as making an unauthorised payment in respect of the member of an amount equal to the aggregate of the sums, and the market value of the assets, transferred.
5
For the purposes of sub-paragraphs (3) and (4) a registered pension scheme is the relevant registered pension scheme if the original nominees' annuity was acquired using sums or assets held for the purposes of the pension scheme.
Sch. 28 modified by The Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) Regulations 2006 (S.I. 2006/207), regs. 1(1), 14 (as substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by S.I. 2012/1795, regs. 1(1), 5)