Finance Act 2004

Benefit crystallisation events 1, 2 and 4: prevention of overlap U.K.

[F1 2B (1) This paragraph applies for the purposes of benefit crystallisation event 1 where— U.K.

(a) the designation was in connection with the winding-up of the scheme, and

(b) the sums or assets designated were sums or assets out of which benefits were provided under a collective money purchase arrangement.

(2) The amount crystallised by the event is to be reduced by the amount (or an appropriate proportion of the amount) previously crystallised on the individual becoming entitled to a scheme pension under the collective money purchase arrangement.]

Textual Amendments

F1 Sch. 32 para. 2B inserted (1.8.2022) by Finance Act 2021 (c. 26), Sch. 5 paras. 22(2), 25(1); S.I. 2022/874, reg. 2

3 (1) This paragraph applies for the purposes of benefit crystallisation event 2 if the scheme pension is funded (in whole or in part) by the [F2 application] of sums or assets representing the whole or part of the individual’s [F3 drawdown pension fund]. U.K.

(2) The amount crystallised by the event is to be reduced by the amount (or an appropriate proportion of the amount) previously crystallised on the designation of the sums or assets as available for the payment of [F4 drawdown pension].

Textual Amendments

F2 Word in Sch. 32 para. 3(1) substituted (6.4.2006) by Finance Act 2005 (c. 7), Sch. 10 paras. 25(2), 64(1)

F3 Words in Sch. 32 para. 3(1) substituted (with effect in accordance with Sch. 16 paras. 85, 104(1) of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 80(2)(a)

F4 Words in Sch. 32 para. 3(2) substituted (with effect in accordance with Sch. 16 paras. 85, 104(1) of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 80(2)(b)

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. 3(2) modified (with effect in accordance with Sch. 16 para. 85 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 104(3)(a)

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