10(1)For the purposes of this Part a lump sum is a winding-up lump sum if—U.K.
(a)the pension scheme is an occupational pension scheme,
(b)the pension scheme is being wound-up,
(c)[any person by whom the member is employed at the time when the lump sum is paid, and who has made contributions under the pension scheme in respect of the member within the period of five years ending with the day on which it is paid,] meets the conditions in sub-paragraph (3),
(d)it is paid when all or part of the member’s [lump sum allowance is available (see paragraph 12A)], [and]
(e)it extinguishes the member’s entitlement to benefits under the pension scheme, ...
(f). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2)But if a lump sum falling within sub-paragraph (1) exceeds [£18,000,] the excess is not a winding-up lump sum.
[(2A)The Treasury may by order substitute for the amount for the time being specified in sub-paragraph (2) such larger amount as is specified in the order.]
(3)The conditions [referred to in paragraph (c) of sub-paragraph (1) are that the person mentioned in that paragraph]—
(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b)is not making contributions under any other registered pension scheme in respect of the member, and
(c)undertakes to the Inland Revenue not to make such contributions during the period of one year beginning with the day on which the lump sum is paid.