Finance Act 2004 (c. 12)

SCHEDULES

SCHEDULE 36 U.K. Pension schemes etc: transitional provisions and savings

Modifications etc. (not altering text)

C1 Sch. 36 modified by The Taxation of Pension Schemes (Transitional Provisions) Order 2006 (S.I. 2006/572), art. 23D (as inserted (1.6.2009) by S.I. 2009/1172, arts. 1, 3)

C2 Sch. 36 applied (1.6.2018) by The Local Government Pension Scheme (Scotland) Regulations 2018 (S.S.I. 2018/141), regs. 1(1), 48(2)

Part 3 U.K. Pre-commencement benefit rights

Modifications etc. (not altering text)

C3 Sch. 36 Pt. 3 modified (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 31(1)

Lump sum rights exceeding £375,000: primary and enhanced protection U.K.

28 (1) If paragraph 12 (enhanced protection) does not apply in relation to the individual, paragraph 2 of Schedule 29 applies in relation to the individual with the following modifications. U.K.

(2) If the value of the individual’s relevant uncrystallised lump sum rights on 5th April 2006 (calculated in accordance with paragraphs 25 and 26) was nil, the permitted maximum under paragraph 2 is nil.

(3) Otherwise, paragraph 2 applies as if for [F1 sub-paragraphs (5) to (7A)] there were substituted—

“(5) If sub-paragraph (2) does not apply, the permitted maximum is the available portion of the member’s lump sum allowance.

(6) The available portion of the member’s lump sum allowance is—

where—

VULSR is the value of the individual’s relevant uncrystallised lump sum rights on 5th April 2006 (calculated in accordance with paragraphs 25 and 26 of Schedule 36), as adjusted under sub-paragraph (6A), and

APCLS is the aggregate of the amounts of each pension commencement lump sum to which the individual has previously become entitled, as adjusted under sub-paragraph (7) (or, if the individual has not previously become entitled to a pension commencement lump sum, is nil).

[F2 (6A) The adjustment referred to in the definition of VULSR is the multiplication of the value of the individual’s relevant uncrystallised lump sum rights on 5th April 2006 by—

where—

[F3 ULA is the underpinned lifetime allowance, and]

FSLA is £1,500,000 (the standard lifetime allowance for the tax year 2006-07).]

[F2 (7) The adjustment of the amount of a pension commencement lump sum to which the individual has previously become entitled referred to in the definition of APCLS is the multiplication of the amount by—

where—

[F3 ULA is the underpinned lifetime allowance, and]

PSLA is the standard lifetime allowance at the time the individual became entitled to the lump sum] [F4 if that occurred before 6 April 2012 but, if that occurred on or after 6 April 2012, PSLA is the greater of £1,800,000 and the standard lifetime allowance at the time the individual became entitled to the lump sum].

[F5 (7A) The underpinned lifetime allowance” is the greater of the current standard lifetime allowance and £1,800,000 (the standard lifetime allowance for the tax year 2011-12).”]

Textual Amendments

F1 Words in Sch. 36 para. 28(3) substituted (with effect in accordance with Sch. 16 paras. 85, 102 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 82(3)

F2 Word in Sch. 36 para. 28(3) formula substituted (with effect in accordance with Sch. 18 Pt. 2 of the amending Act) by Finance Act 2011 (c. 11), Sch. 18 para. 10(2)(a)

F3 Words in Sch. 36 para. 28(3) substituted (with effect in accordance with Sch. 18 Pt. 2 of the amending Act) by Finance Act 2011 (c. 11), Sch. 18 para. 10(2)(b)

F4 Words in Sch. 36 para. 28(3) inserted (with effect in accordance with Sch. 4 para. 28(4) of the amending Act) by Finance Act 2016 (c. 24), Sch. 4 para. 28(2)

F5 Words in Sch. 36 para. 28(3) inserted (with effect in accordance with Sch. 18 Pt. 2 of the amending Act) by Finance Act 2011 (c. 11), Sch. 18 para. 10(3)