C1C3C4C5C6C7C8C9C10C11C12C13C14C15C16Part 4Pension schemes etc

Annotations:
Modifications etc. (not altering text)
C8

Pt. 4 modified (1.7.2008) (N.I.) (with effect in accordance with reg. 1 of the amending Rule) by The Health and Social Care (Pension Scheme) Regulations (Northern Ireland) 2008 (S.R. 2008/256), regs. 1, 124(1) (with regs. 134, 258)

C10

Pt. 4 applied (21.7.2009) by Finance Act 2009 (c. 10), Sch. 35 para. 18

C11

Pt. 4 modified (19.7.2011) by Finance Act 2011 (c. 11), Sch. 18 para. 14(3)

C12

Pt. 4 applied (with modifications) (with application in accordance with Sch. 22 para. 1 of the amending Act) by Finance Act 2013 (c. 29), Sch. 22 para. 1(2)

C13

Pt. 4 modified (17.7.2014) by Finance Act 2014 (c. 26), Sch. 6 para. 1(2)(3)

C14

Pt. 4: power to amend conferred (17.12.2014) by Taxation of Pensions Act 2014 (c. 30), s. 4(3)

C15

Pt. 4 modified (15.9.2016) by Finance Act 2016 (c. 24), Sch. 4 para. 1

C16

Pt. 4 modified (15.9.2016) by Finance Act 2016 (c. 24), Sch. 4 para. 9(2)

C10C11Chapter 5Registered pension schemes: tax charges

Unauthorised payments charge

I1C2212Valuation of uncrystallised rights for purposes of section 210

1

Rights are uncrystallised if the member is not entitled to the present payment of benefits in respect of the rights.

2

The member is to be treated as entitled to the present payment of benefits in respect of the sums and assets representing the F2member's drawdown pension fundF3or the member's flexi-access drawdown fund.

3

The value of the member’s uncrystallised rights under F1an arrangement on any date is to be calculated—

a

in accordance with subsection (4) if the arrangement is a cash balance arrangement,

b

in accordance with subsection (5) if the arrangement is a money purchase arrangement F5that is neither a cash balance arrangement nor a collective money purchase arrangement,

c

in accordance with subsection (6) if the arrangement is a defined benefits arrangement F6or a collective money purchase arrangement, and

d

in accordance with subsection (7) if the arrangement is a hybrid arrangement.

4

If this subsection applies, the value of the member’s uncrystallised rights under the arrangement on the date is the amount which would, on the valuation assumptions (see section 277), be available for the provision of benefits in respect of those rights if the member became entitled to benefits in respect of those rights on the date.

5

If this subsection applies, the value of the member’s uncrystallised rights under the arrangement on the date is the aggregate of—

a

the amount of such of the sums held for the purposes of the arrangement on the date as represent those rights, and

b

the market value of such of the assets held for the purposes of the arrangement on the date as represent those rights.

6

If this subsection applies, the value of the member’s uncrystallised rights under the arrangement on the date is—

(RVF×ARP)+LSmath

where—

RVF is the relevant valuation factor (see section 276),

ARP is the annual rate of pension to which the member would, on the valuation assumptions, be entitled under the arrangement on the date if, on the date, the member acquired an actual (rather than a prospective) right to receive a pension in respect of the rights, and

LS is the amount of any lump sum to which the member would, on the valuation assumptions, be entitled under the arrangement on the date (otherwise than by way of commutation of pension) if, on the date, the member acquired an actual (rather than a prospective) right to payment of a lump sum in respect of the rights.

F47

If this subsection applies, the value of the member's uncrystallised rights under the arrangement on the date (“the hybrid value”) is to be calculated by taking the following steps—

  • Step 1 In relation to each relevant variety of benefits, calculate (in accordance with the preceding provisions of this section) the value of the member's uncrystallised rights on the date, assuming that benefits of that variety are provided under the arrangement.

  • Step 2 The hybrid value is the higher or highest of the amounts determined under step 1.”

8

For the purposes of this section a variety of benefits is “relevant” in relation to a hybrid arrangement if, in any circumstances, benefits of that variety may be provided under the arrangement.

9

In this section “variety of benefits” means a variety of benefits specified in section 152(10).