SCHEDULES

C5C10SCHEDULE 36Pension schemes etc: transitional provisions and savings

Annotations:
Modifications etc. (not altering text)
C5

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)

C3Part 3Pre-commencement benefit rights

Annotations:
Modifications etc. (not altering text)

Entitlement to lump sums exceeding 25% of uncrystallised rights

C4C3C131

1

If the pension condition is met in relation to an individual and a registered pension scheme which is a protected pension scheme, the provisions of Schedule 29 relating to pension commencement lump sums apply in relation to the individual and the pension scheme with the modifications specified in paragraph 34 (but subject to sub-paragraph (2)).

2

Those provisions do not apply with those modifications if the lump sum condition and registration condition in paragraph 24 are met.

C2C9C6C8C73

The pension condition is that the individual becomes entitled to all the pensions payable to the individual under arrangements under the pension scheme (to which the individual did not have an actual entitlement on or before 5th April 2006) on the same date.

4

A registered pension scheme is a protected pension scheme if condition A or condition B is met.

5

Condition A is met if—

a

the pension scheme was within any of paragraphs (a) to (e) of paragraph 1(1), and

b

on 5th April 2006 the lump sum percentage of the individual’s uncrystallised rights under the pension scheme exceeded 25%.

6

The lump sum percentage of an individual’s uncrystallised pension rights under a pension scheme on 5th April 2006 is—

VULSRVUR×100math

where—

VULSR is the value of the individual’s uncrystallised lump sum rights under the pension scheme on 5th April 2006, calculated in accordance with paragraph 32, and

VUR is the value of the individual’s uncrystallised rights under the pension scheme on 5th April 2006, calculated in accordance with paragraph 33.

7

Condition B is met if the individual is a member of the pension scheme F1(“a transferee pension scheme”) as a result of—

a

a block transfer from the pension scheme (“the original pension scheme”) in relation to which condition A is met to the transferee pension scheme, or

b

a block transfer to the transferee pension scheme from a pension scheme that was a transferee pension scheme in relation to the original pension scheme by virtue of the previous application of paragraph (a) or the previous application (on one or more occasions) of this paragraph.

8

“Block transfer” has the same meaning as in paragraph 22(6) F2and (6A), but treating the references there to the member as references to the individual F3and reading paragraph 22(6A)(c) as if its reference to paragraph 22(7)(a) were a reference to sub-paragraph (3) of this paragraph.

9

Where a pension scheme is a protected pension scheme because condition B is met, Schedule 29 as modified by paragraph 34 applies as if the protected pension scheme were the same pension scheme as the original pension scheme.