SCHEDULES

SCHEDULE 36Pension schemes etc: transitional provisions and savings

Part 3Pre-commencement benefit rights

Winding-up lump sums paid by former approved superannuation funds

35

(1)

For the tax year 2006-07, Schedule 29 (authorised lump sums) applies in relation to former approved superannuation funds with the modifications specified in sub-paragraphs (2) and (3).

(2)

Paragraph 10 (winding-up lump sums) applies as if the following were omitted—

(a)

sub-paragraph (1)(c) and (d),

(b)

sub-paragraph (2), and

(c)

sub-paragraph (3).

(3)

Paragraph 11 (lifetime allowance excess lump sums) applies as if at the end of paragraph (b) there were inserted “or a winding-up lump sum”.

(4)

Section 636B of ITEPA 2003 (taxation of trivial commutation and winding-up lump sums) applies in relation to a winding-up lump sum paid by a former approved superannuation fund in the tax year 2006-07 as if—

(a)

in subsection (2), after “equal to” there were inserted “75% of”, and

(b)

subsection (3) were omitted.

(5)

Former approved superannuation fund” has the meaning given by paragraph 1(3).