SCHEDULES

C5C4SCHEDULE 29Registered pension schemes: authorised lump sums—supplementary

Annotations:
Modifications etc. (not altering text)
C5

Sch. 29 modified (6.4.2006) by The Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) Regulations 2006 (S.I. 2006/207), regs. 1(1), 15 (as amended: (13/8/2009) by S.I. 2009/2047, regs. 1(1), 2-10; (with effect in accordance with reg. 1(3) of the amending S.I.) by S.I. 2012/1795, regs. 1(1), 6; (with effect in accordance with Sch. 1 para. 96(16)(a) of the amending Act) by 2014 c. 30, Sch. 1 para. 96(3)-(14) (with Sch. 1 para. 96(16)(b)); and (for the tax year 2024-25 and subsequent tax years) by 2024 c. 3, Sch. 9 paras. 62(6), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4))

C4

Sch. 29 modified by The Taxation of Pension Schemes (Transitional Provisions) Order 2006 (S.I. 2006/572), art. 23C (as inserted (1.6.2009) by S.I. 2009/1172, arts. 1, 3 (as amended (with effect in accordance with s. 42(9) of the amending Act) by Finance Act 2014 (c. 26), s. 42(5); and as amended by Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 72(1) (with Sch. 1 para. 72(2)(b)))

C1C3Part 2Lump sum death benefit rule

Annotations:
Modifications etc. (not altering text)
C1

Sch. 29 Pt. 2 applied (with modifications) (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 14

Money purchase arrangements

F7Drawdown pension fund lump sum death benefit

C217

F11

For the purposes of this Part a lump sum death benefit is a drawdown pension fund lump sum death benefit if—

a

it is paid in respect of income withdrawal to which the member was entitled F8to be paid from the member's drawdown pension fund in respect of an arrangement at the date of the member's death, and

b

it is not a charity lump sum death benefit.

2

A lump sum death benefit is also F2a drawdown pension fund lump sum death benefit if—

a

it is paid on the death of a dependant of the member,

F4b

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

c

it is paid in respect of dependants' income withdrawal to which the dependant was entitled at the date of the dependant’s death F9to be paid from the dependant's drawdown pension fund in respect of an arrangement relating to the memberF3, and

d

it is not a charity lump sum death benefit.

3

But if the amount of a lump sum falling within sub-paragraph (1) or (2) exceeds the permitted maximum, the excess is not F5a drawdown pension fund lump sum death benefit.

4

The permitted maximum is the aggregate of—

a

the amount of the sums, and

b

the market value of the assets,

representing the member’s or dependant’s F6drawdown pension fund in respect of the arrangement immediately before the payment is made.