Finance Act 2004

[F1 Drawdown pension fund lump sum death benefit] U.K.

Textual Amendments

F1 Sch. 29 para. 17 cross-heading substituted (with effect in accordance with Sch. 16 paras. 85, 103 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 37(6)

17 [F2 (1) For the purposes of this Part a lump sum death benefit is a drawdown pension fund lump sum death benefit if— U.K.

(a) it is paid in respect of income withdrawal to which the member was entitled [F3 to be paid from the member's drawdown pension fund in respect of] an arrangement at the date of the member's death, and

(b) it is not a charity lump sum death benefit.]

(2) A lump sum death benefit is also [F4 a drawdown pension fund lump sum death benefit] if—

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

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

(c) it is paid in respect of dependants' income withdrawal to which the dependant was entitled at the date of the dependant’s death [F6 to be paid from the dependant's drawdown pension fund] in respect of an arrangement relating to the member[F7 , and

(d) it is not a charity lump sum death benefit.]

(3) But if the amount of a lump sum falling within sub-paragraph (1) or (2) exceeds the permitted maximum, the excess is not [F8 a drawdown pension fund 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 the member’s or dependant’s [F9 drawdown pension fund] in respect of the arrangement immediately before the payment is made.

Textual Amendments

F2 Sch. 29 para. 17(1) substituted (with effect in accordance with Sch. 16 paras. 85, 103 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 37(2)

F3 Words in Sch. 29 para. 17(1)(a) substituted (17.12.2014) by Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 23(a)

F4 Words in Sch. 29 para. 17(2) substituted (with effect in accordance with Sch. 16 paras. 85, 103 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 37(3)(a)

F5 Sch. 29 para. 17(2)(b) 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. 37(3)(b)

F6 Words in Sch. 29 para. 17(2)(c) inserted (17.12.2014) by Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 23(b)

F7 Sch. 29 para. 17(2)(d) and word inserted (with effect in accordance with Sch. 16 paras. 85, 103 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 37(3)(c)

F8 Words in Sch. 29 para. 17(3) substituted (with effect in accordance with Sch. 16 paras. 85, 103 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 37(4)

F9 Words in Sch. 29 para. 17(4) substituted (with effect in accordance with Sch. 16 paras. 85, 103 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 37(5)

Modifications etc. (not altering text)

C1 Sch. 29 para. 17 modified (27.7.2010) by Finance (No. 2) Act 2010 (c. 31), Sch. 3 para. 2(1)(2)(e) (with Sch. 2 para. 2(1)