Finance Act 2004 (c. 12)

SCHEDULES

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

Modifications etc. (not altering text)

C1 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

C2 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; 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 2 U.K. Lump sum death benefit rule

Modifications etc. (not altering text)

C3 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

C4 Sch. 29 Pt. 2 modified (6.4.2006) by The Taxation of Pension Schemes (Transitional Provisions) Order 2006 (S.I. 2006/572), arts. 1(1), 6, 8(1)(3)

Defined benefits arrangements U.K.

Defined benefits lump sum death benefit U.K.

13 U.K. For the purposes of this Part a lump sum death benefit is a defined benefits lump sum death benefit if—

(a) the member had not reached the age of 75 at the date of the member’s death,

(b) it is paid in respect of a defined benefits arrangement,

(c) it is paid before the end of the period of two years beginning with the [F1 earlier of the day on which the scheme administrator first knew of the member’s death and the day on which the scheme administrator could first reasonably be expected to have known of it,] and

(d) it is not a pension protection lump sum death benefit, trivial commutation lump sum death benefit or winding-up lump sum death benefit.

Textual Amendments

F1 Words in Sch. 29 para. 13(c) substituted (19.7.2007) (with effect in accordance with Sch. 20 para. 24(7) of the amending Act) by Finance Act 2007 (c. 11), Sch. 20 para. 13(2)

Pension protection lump sum death benefit U.K.

14 (1) For the purposes of this Part a lump sum death benefit is a pension protection lump sum death benefit if— U.K.

(a) the member had not reached the age of 75 at the date of the member’s death,

(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) The pension protection limit is—

where—

AC is the amount crystallised by reason of the member becoming entitled to the pension (see section 216),

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.

Modifications etc. (not altering text)

C5 Sch. 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)