SCHEDULES
SCHEDULE 36Pension schemes etc: transitional provisions and savings
Part 2Pre-commencement rights: lifetime allowance charge
“Primary protection”
7
1
This paragraph makes provision for the operation of a lifetime allowance enhancement factor in relation to all benefit crystallisation events occurring in relation to an individual where—
a
the amount of the relevant pre-commencement pension rights of the individual exceeds £1,500,000 (the standard lifetime allowance for the tax year 2006-07), and
b
notice of intention to rely on this paragraph is given to the Inland Revenue in accordance with regulations made by the Board of Inland Revenue.
2
The lifetime allowance enhancement factor is the primary protection factor.
3
The primary protection factor is—
where—
RR is the amount of the relevant pre-commencement pension rights of the individual, and
SLA is £1,500,000 (the standard lifetime allowance for the tax year 2006-07).
4
Sub-paragraph (3) is subject to paragraph 11 (pension debit on or after 6th April 2006).
5
The amount of the relevant pre-commencement pension rights of the individual is the aggregate of—
a
the value of the individual’s relevant uncrystallised pension rights on 5th April 2006 (calculated in accordance with paragraphs 8 and 9), and
b
the value of the individual’s relevant crystallised pension rights on that date (calculated in accordance with paragraph 10).