Finance Act 2004

Benefit crystallisation events 1 and 5: hybrid arrangements U.K.

5 (1) This paragraph applies where— U.K.

(a) immediately before the individual reaches the age of 75, there is under any of the relevant pension schemes a hybrid arrangement relating to the individual, and

(b) the benefits that may be provided to or in respect of the individual under the arrangement may, depending on the circumstances, be money purchase benefits or defined benefits.

(2) Benefit crystallisation event 1 applies as if, at that time, the circumstances are such that the benefits to be provided are money purchase benefits (with the effect that [F1 , under paragraph 8(2) of Schedule 28, any relevant uncrystallised funds are to be treated as having been designated under the arrangement] as available for the provision of unsecured pension to the individual).

(3) Benefit crystallisation event 5 applies as if, at that time, the circumstances are such that the benefits to be provided are defined benefits.

(4) The amount crystallised is the greater of the amounts crystallised by the two benefit crystallisation events.

Textual Amendments

F1 Words in Sch. 32 para. 5(2) substituted (6.4.2006) by Finance Act 2005 (c. 7), Sch. 10 paras. 25(3), 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)

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