Finance Act 2004

Charity lump sum death benefit U.K.

18 (1) A lump sum death benefit is a charity lump sum death benefit if— U.K.

(a) the member had reached the age of 75 at the date of the member’s death,

(b) there are no dependants of the member,

(c) it is paid in respect of [F1 the member's alternatively secured pension fund (or what would be the member's alternatively secured pension fund but for paragraph 11(6) and (7) of Schedule 28)] in respect of an arrangement at the date of the member’s death, and

(d) it is paid to a charity nominated by the member.

(2) A lump sum death benefit is also a charity lump sum death benefit if—

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

(b) the dependant had reached the age of 75 at the date of the dependant’s death,

(c) there are no other dependants of the member,

(d) it is paid in respect of [F2 the dependant's alternatively secured pension fund] at the date of the dependant’s death in respect of an arrangement relating to the member, and

(e) it is paid to a charity nominated by the member (or, if the member made no nomination, by the dependant).

(3) But if the amount of a lump sum falling within sub-paragraph (1) or (2) exceeds the permitted maximum, the amount of the excess is not a charity 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 [F3 what is (or but for paragraph 11(6) and (7) of Schedule 28 would be)] the member’s or dependant’s alternatively secured pension fund in respect of the arrangement immediately before the payment is made.

Textual Amendments

F1 Words in Sch. 29 para. 18(1)(c) substituted (retrospective to 6.4.2006) by Finance Act 2007 (c. 11), Sch. 19 paras. 16(2), 29(4)

F2 Words in Sch. 29 para. 18(2)(d) substituted (retrospective to 6.4.2006) by Finance Act 2007 (c. 11), Sch. 19 paras. 16(4), 29(4)

F3 Words in Sch. 29 para. 18(4) inserted (retrospective to 6.4.2006) by Finance Act 2007 (c. 11), Sch. 19 paras. 16(6), 29(4)