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SCHEDULES

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

Modifications etc. (not altering text)

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; and amended (with effect in accordance with art. 1(3) of the amending S.I.) by S.I. 2011/1782, arts. 1(1), 2(3))

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

Trivial commutation lump sumU.K.

7(1)For the purposes of this Part a lump sum is a trivial commutation lump sum if—U.K.

(a)it is paid when no trivial commutation lump sum has previously been paid to the member (by any registered pension scheme) or, if such a lump sum has previously been paid, before the end of the commutation period,

(b)on the nominated date, the value of the member’s pension rights does not exceed the commutation limit,

(c)it is paid when all or part of the member’s lifetime allowance is available,

(d)it extinguishes the member’s entitlement to benefits under the pension scheme, and

(e)it is paid when the member has reached the age of 60 but has not reached the age of 75.

(2)The commutation period is the period beginning with the day on which a trivial commutation lump sum is first paid to the member and ending 12 months after that day.

(3)The nominated date is the day within the period of three months ending with the first day of the commutation period nominated by the member (or, if no date is nominated, is the first day of the commutation period).

(4)The commutation limit is 1% of the standard lifetime allowance on the nominated date.

(5)The value of the member’s pension rights on the nominated date is the aggregate of—

(a)the value of the member’s relevant crystallised pension rights on that date (calculated in accordance with paragraph 8), and

(b)the value of the member’s uncrystallised rights on that date (calculated in accordance with paragraph 9).

8(1)The value of the member’s relevant crystallised pension rights on the nominated date is the aggregate of—U.K.

(a)the value of the member’s relevant crystallised pension rights on 5th April 2006, calculated in accordance with paragraph 10 of Schedule 36 (as if the member were the individual mentioned there), as adjusted under sub-paragraph (2), and

(b)the aggregate of the amounts crystallised on benefit crystallisation events in the period beginning with 6th April 2006 and ending with the nominated date, as adjusted under sub-paragraph (3).

(2)The adjustment referred to in sub-paragraph (1)(a) is the multiplication of the value of the member’s relevant crystallised pension rights on 5th April 2006 by—

where—

SLAN is the standard lifetime allowance on the nominated date, and

FSLA is £1,500,000 (the standard lifetime allowance for the tax year 2006-07).

(3)The adjustment referred to in sub-paragraph (1)(b) is the multiplication of the amount crystallised by a previous benefit crystallisation event by—

where—

SLAN is the standard lifetime allowance on the nominated date, and

PSLA is the standard lifetime allowance when the previous benefit crystallisation event occurred.

9(1)The value of the member’s uncrystallised rights on the nominated date is the aggregate value of the member’s uncrystallised rights on that date under each arrangement relating to the member under a registered pension scheme.U.K.

(2)The value on the nominated date of the member’s uncrystallised rights under such an arrangement is to be calculated in accordance with section 212 (valuation of uncrystallised rights for purposes of section 210).