SCHEDULES

SCHEDULE 29U.K.Registered pension schemes: authorised lump sums—supplementary

Modifications etc. (not altering text)

C1Sch. 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); and (18.11.2024 for the tax year 2024-25 and subsequent tax years) by S.I. 2024/1012, regs. 1(2)(3), 22(2))

C2Sch. 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 by Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 72(1) (with Sch. 1 para. 72(2)(b)); and (18.11.2024 for the tax year 2024-25 and subsequent tax years) by S.I. 2024/1012, regs. 1(2)(3), 25(14))

Part 1U.K.Lump sum rule

Modifications etc. (not altering text)

C4Sch. 29 Pt. 1 applied (with modifications) (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 11

[F1Pension commencement excess lump sumU.K.

Textual Amendments

F1Sch. 29 para. 3C and cross-heading inserted ( for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 26(9), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4; and (18.11.2024 for the tax year 2024-25 and subsequent tax years) by S.I. 2024/1012, regs. 1(2)(3), 17)

3C(1)For the purposes of this Part a lump sum is a pension commencement excess lump sum if—U.K.

(a)the member becomes entitled to it in connection with becoming entitled to a relevant pension (or dies after becoming entitled to it but before becoming entitled to the relevant pension in connection with which it was anticipated that the member would become entitled to it);

(b)it is paid when none of the member’s lump sum allowance [F2, or when none of the individual’s lump sum and death benefit allowance,] is available (see paragraph 12A);

(c)it is paid within the period beginning six months before, and ending one year after, the day on which the member becomes entitled to it;

(d)it does not reduce the rate of payment of any pension to which the member has become (actually) entitled, or extinguish the member’s entitlement to payment of any such pension;

(e)it is paid when the member has reached normal minimum pension age (or the ill-health condition is met); and

(f)it is not an excluded lump sum (see sub-paragraph (4)).

F3(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F4(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4)A lump sum is an “excluded lump sum” if—

(a)it would, apart from this paragraph, be permitted to be paid under the lump sum rule in section 166, F5...

F5(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5)In determining for the purposes of this paragraph—

(a)whether any of a member’s lump sum allowance [F6or lump sum and death benefit allowance] is available on the payment of a lump sum, F7...

F7(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

the member is treated as having already become entitled to any pension commencement lump sum that is paid to the member in connection with becoming entitled to the relevant pension.]

Textual Amendments

F2Words in Sch. 29 para. 3C(1)(b) inserted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) Regulations 2024 (S.I. 2024/356), regs. 1, 3(10)(a)

F3Sch. 29 para. 3C(2) omitted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by virtue of The Pensions (Abolition of Lifetime Allowance Charge etc) Regulations 2024 (S.I. 2024/356), regs. 1, 3(10)(b)

F4Sch. 29 para. 3C(3) omitted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by virtue of The Pensions (Abolition of Lifetime Allowance Charge etc) Regulations 2024 (S.I. 2024/356), regs.1, 3(10)(b)

F5Sch. 29 para. 3C(4)(b) and preceding word omitted (24.5.2024) by virtue of Finance (No. 2) Act 2024 (c. 12), s. 24(7)

F7Sch. 29 para. 3C(5)(b) and word omitted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by virtue of The Pensions (Abolition of Lifetime Allowance Charge etc) Regulations 2024 (S.I. 2024/356), regs. 1, 3(10)(c)(ii)