Modifications etc. (not altering text)
C1Sch. 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
C2Sch. 32 applied (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 23(5)
7(1)This paragraph has effect if—U.K.
(a)the individual becomes entitled before reaching normal minimum pension age to the payment of a lifetime annuity purchased under a money purchase arrangement under any of the relevant pension schemes, and
(b)the ill-health condition is not satisfied immediately before the individual becomes so entitled.
(2)Benefit crystallisation event 2 applies as if—
(a)the lifetime annuity were a scheme pension under the pension scheme, and
(b)the individual becomes entitled to it only on reaching normal minimum pension age.
(3)Benefit crystallisation event 4 does not apply in relation to the lifetime annuity.
[F1(4)Sub-paragraph (5) has effect for the purposes of benefit crystallisation event 2 as it applies in relation to the individual's becoming entitled to the lifetime annuity.
(5)If the total of—
(a)the sums applied to purchase the lifetime annuity and any related dependants' annuity, and
(b)the market value, at the time they are applied, of the assets applied to make the purchase,
is greater than the amount that would apart from this sub-paragraph be the amount crystallised by the event, that total is the amount crystallised by the event.]
Textual Amendments
F1Sch. 32 para. 7(4)(5) inserted (17.12.2014) (with effect in accordance with Sch. 1 para. 76(2) of the amending Act) by Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 76(1)
Commencement Information
I1Ss. 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