[F1185JEffect of repayment of certain pre-6 April 2015 lump sumsU.K.
(1)For the purposes of this Part—
(a)a lump sum to which this section applies is treated as never having been paid, and
(b)the payment by which it is repaid is treated as not being a payment.
(2)This section applies to a lump sum if—
(a)the sum is paid by a registered pension scheme to a member of the scheme in respect of a money purchase arrangement,
(b)the sum is paid to the member in connection with a pension under the scheme to which it is expected that the member will become entitled (“the expected pension”),
(c)the expected pension is income withdrawal, a lifetime annuity or a scheme pension,
(d)the sum is paid before the member becomes entitled to the expected pension,
(e)either—
(i)the sum is paid on or after 19 September 2013 but before 6 April 2015, or
(ii)the sum is paid before 19 September 2013, a contract for a lifetime annuity is entered into to provide the expected pension, and on or after 19 March 2014 the contract is cancelled,
(f)before the member becomes entitled to the expected pension, the member repays the sum to the pension scheme that paid it, and
(g)the repayment is made before 6 October 2015.
(3)For the purposes of subsection (2), if the circumstances are as described in subsection (2)(e)(ii), the member is treated as not having become entitled to the expected pension as a result of the cancelled contract having been entered into.]
Textual Amendments
F1S. 185J and cross-heading inserted (19.3.2014) by Finance Act 2014 (c. 26), Sch. 5 paras. 3, 15