C12C28C35C25C24C4C17C16C6C26C5C34C1Part 4Pension schemes etc

Annotations:
Modifications etc. (not altering text)
C17

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)

C6

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

C26

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

C5

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)

C34

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

C1

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

C6C26Chapter 5Registered pension schemes: tax charges

Lifetime allowance charge

I1C20C3C21C18C8C29C22C9C14C32C7C2C19C31C10C15C11C13C23C27C30C33216Benefit crystallisation events and amounts crystallised

1

This table sets out—

a

the events which are benefit crystallisation events in relation to the individual, and

b

the amount which is crystallised by each of those events.

BENEFIT CRYSTALLISATION EVENTS

AMOUNT CRYSTALLISED

1. The designation of sums or assets held for the purposes of a money purchase arrangement under any of the relevant pension schemes as available for the payment of F13drawdown pension to the individual

The aggregate of the amount of the sums and the market value of the assets designated

2. The individual becoming entitled to a scheme pension under any of the relevant pension schemes

RVF × P

3. The individual, having become so entitled, becoming entitled to payment of the scheme pension, otherwise than in excepted circumstances, at an increased annual rate which

F10

a

exceeds the threshold annual rate, and

b

exceeds by more than the permitted margin the rate at which it was payable on the day on which the individual became entitled to it

RVF × XP

4. The individual becoming entitled to a lifetime annuity purchased under a money purchase arrangement under any of the relevant pension schemes

The aggregate of the amount of such of the sums, and the market value of such of the assets, representing the individual’s rights under the arrangement as are applied to purchase the lifetime annuity F9and any related dependants' annuityF8and any related nominees' annuity

5. The individual reaching the age of 75 when prospectively entitled to a scheme pension or a lump sum (or both) under a defined benefits arrangement under any of the relevant pension schemes

(RVF × DP) + DSLS

F115A. The individual reaching the age of 75 having designated sums or assets held for the purposes of a money purchase arrangement under any of the relevant pension schemes as available for the payment of F1drawdown pension to the individual

The aggregate of the amount of the sums and the market value of the assets representing the F7individual's drawdown pension fund under the arrangement F5(if any), plus the aggregate of the amount of the sums and the market value of the assets representing the individual's flexi-access drawdown fund under the arrangement (if any), less the aggregate of amounts crystallised by benefit crystallisation event 1 in relation to the arrangement and the individual

F125B. The individual reaching the age of 75 when there is a money purchase arrangement relating to the individual under any of the relevant pension schemes

The amount of any remaining unused funds

F25C. The designation, on or after 6 April 2015 but before the end of the relevant two-year period, of relevant unused uncrystallised funds as available for the payment, to a dependant or nominee of the individual, of (as the case may be) dependants' flexi-access drawdown pension or nominees' flexi-access drawdown pension

The aggregate of the amount of the sums and the market value of the assets designated

F35D. A person becoming entitled, on or after 6 April 2015 but before the end of the relevant two-year period, to a dependants' annuity or nominees' annuity in respect of the individual if—

  1. a

    the annuity is purchased using (whether or not exclusively) relevant unused uncrystallised funds, and

  2. b

    the individual died on or after 3 December 2014

The aggregate of—

  1. a

    the amount of such of the sums, and

  2. b

    the market value of such of the assets,

applied to purchase the annuity as are relevant unused uncrystallised funds

6. The individual becoming entitled to a relevant lump sum under any of the relevant pension schemes

The amount of the lump sum F4paid to the individual

7. A person being paid a relevant lump sum death benefit in respect of the individual under any of the relevant pension schemes

The amount of the lump sum death benefit

8. The transfer of sums or assets held for the purposes of, or representing accrued rights under, any of the relevant pension schemes so as to become held for the purposes of or to represent rights under a qualifying recognised overseas pension scheme in connection with the individual’s membership of that pension scheme

The aggregate of the amount of any sums transferred and the market value of any assets transferred

F69. If regulations under section 164(1)(f) so provide, the happening of an event prescribed in the regulations in relation to a payment prescribed in the regulations

An amount determined in accordance with the regulations

2

Schedule 32 gives the meaning of expressions used in the table in subsection (1).