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Finance Act 2004

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Changes over time for: Paragraph 34

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Version Superseded: 01/01/2009

Status:

Point in time view as at 19/07/2006.

Changes to legislation:

There are currently no known outstanding effects for the Finance Act 2004, Paragraph 34. Help about Changes to Legislation

34(1)Schedule 29 applies with the following modifications.U.K.

(2)Paragraph 2 applies as if the reference in sub-paragraph (2) to the arrangement under which the member becomes entitled to the relevant pension were to the pension scheme and for sub-paragraphs (5) to (8) there were substituted—

(5)If paragraph 2(2) does not apply F1..., the permitted maximum is—

F2(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7)In this paragraph—

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 of Schedule 36,

CSLA is the current standard lifetime allowance,

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

ALSA is the [F3greater of the additional lump sum amount and nil].

(7A)The additional lump sum amount is—

where—

  • LS is the lump sum paid (but this is subject to [F4sub-paragraphs (7AA) and (7B)]),

  • AC is the amount crystallised on the individual becoming entitled to the pension in connection with which the lump sum is paid (see section 216) (but this is subject to sub-paragraph (7B)), 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 of Schedule 36.

[F5(7AA)Where the pension in connection with which the lump sum is paid is a scheme pension under a money purchase arrangement, AC is the scheme pension purchase price, as it would be defined by paragraph 3 if the words “but subject to sub-paragraph (8)” in sub-paragraph (7A) and sub-paragraph (8) were omitted.]

(7B)Any part of [F6what would otherwise be LS or AC] which represents rights attributable to a disqualifying pension credit is to be disregarded.

F2(7C). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)Omit paragraph 3 (applicable amount for pension commencement lump sums) [F7(but without prejudice to its operation for the purposes of paragraph 2(7AA) of Schedule 29 as inserted by sub-paragraph (2))].

Textual Amendments

F1Words in Sch. 36 para. 34(2) omitted (retrospective to 6.4.2006) by virtue of Finance Act 2008 (c. 9), Sch. 29 para. 13(1)(a)(2)

F2Words in Sch. 36 para. 34(2) omitted (retrospective to 6.4.2006) by virtue of Finance Act 2008 (c. 9), Sch. 29 para. 13(1)(b)(2)

F3Words in Sch. 36 para. 34(2) substituted (6.4.2006) by Finance Act 2005 (c. 7), Sch. 10 paras. 57, 64(1)

F4Words in Sch. 36 para. 34(2) substituted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 25(2)

F5Words in Sch. 36 para. 34(2) inserted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 25(3)

F6Words in Sch. 36 para. 34(2) substituted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 25(4)

F7Words in Sch. 36 para. 34(3) inserted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 25(5)

Modifications etc. (not altering text)

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