Finance Act 2004

Benefit crystallisation event 2: meaning of “P” U.K.

9 (1) For the purposes of benefit crystallisation event 2 “P” is the amount of the pension which will be payable to the individual in the period of 12 months beginning with the day on which the individual becomes entitled to it (assuming that it remains payable throughout that period at the rate at which it is payable on that day). U.K.

[F1 (1A) If the pension is under a public service pension scheme, any abatement of the pension is to be left out of account in determining the amount of the pension which will be payable for the purposes of sub-paragraph (1).]

(2) If the amount of the pension which will be payable [F2 is] reduced so as to reflect the amount of any tax under section 215 to be paid by the scheme administrator, that reduction is to be left out of account in determining the amount of the pension F3 ... for the purposes of sub-paragraph (1).

[F4 (3) And if the reduction is such that, in accordance with normal actuarial practice, it would be taken fully to reflect the amount of the tax, the tax is not to be treated as tax paid by the scheme administrator for the purposes of section 215(9).]

Textual Amendments

F1 Sch. 32 para. 9(1A) inserted (6.4.2006) by Finance Act 2005 (c. 7), Sch. 10 paras. 8(2), 64(1)

F2 Word in Sch. 32 para. 9(2) substituted (6.4.2006) by Finance Act 2005 (c. 7), Sch. 10 paras. 43(3)(a), 64(1)

F3 Words in Sch. 32 para. 9(2) repealed (6.4.2006) by Finance Act 2005 (c. 7), Sch. 10 paras. 43(3)(b), 64(1), Sch. 11 Pt. 4

F4 Sch. 32 para. 9(3) inserted (6.4.2006) by Finance Act 2005 (c. 7), Sch. 10 paras. 43(4), 64(1)

Modifications etc. (not altering text)

C1 Sch. 32 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), 16

C2 Sch. 32 applied (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 23(5)

C3 Sch. 32 para. 9(2) modified (6.4.2006) by The Registered Pension Schemes (Splitting of Schemes) Regulations 2006 (S.I. 2006/569), regs. 1(1), 3(1)(2), Sch. 3 Pt. 1

Commencement Information

I1 Ss. 160-274, 281, Schs. 30-35 in force at 6.4.2006 but any power to make an order or regulations under those provisions may be exercised at any time after Royal Assent, see s. 284