Point in time view as at 18/11/2024.
There are currently no known outstanding effects for the Finance Act 2004, Pension protection lump sum death benefit.
14(1)For the purposes of this Part a lump sum death benefit is a pension protection lump sum death benefit if—U.K.
F1(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b)it is paid in respect of a defined benefits arrangement,
(c)it is paid in respect of a scheme pension to which the member was entitled at the date of the member’s death, and
(d)the member has specified that it is to be treated as a pension protection lump sum death benefit (instead of a defined benefits lump sum death benefit).
(2)But if the amount of a lump sum falling within sub-paragraph (1) exceeds the pension protection limit, the excess is not a pension protection lump sum death benefit.
(3)F2The pension protection limit is—
where—
[F3B and C have the same meaning as they have for the purposes of paragraph 2C(2);]
AP is the amount of the pension paid in respect of the period between the member becoming entitled to the pension and the member’s death, and
TPLS is the total amount of pension protection lump sum death benefit previously paid in respect of the pension under this paragraph.
Textual Amendments
F1Sch. 29 para. 14(1)(a) omitted (with effect in accordance with Sch. 16 paras. 85, 103 of the amending Act) by virtue of Finance Act 2011 (c. 11), Sch. 16 para. 34(2)
F2Sch. 29 para. 14(3): in the formula the words “(B x C)” are substituted for “AC” (18.11.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 6(4)(a)
F3Words in Sch. 29 para. 14(3) substituted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 6(4)(b)
Modifications etc. (not altering text)
C5Sch. 29 para. 14(3) modified (6.4.2006) by The Taxation of Pension Schemes (Transitional Provisions) Order 2006 (S.I. 2006/572), arts. 1(1), 33(1)(2)(4); (as amended (18.11.2024 for the tax year 2024-25 and subsequent tax years) by S.I. 2024/1012, regs. 1(2)(3), 25(21)(b))
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