C1C2C3C4C5C6C7C8C9C10C11C12C13C14C15Part 4Pension schemes etc
Pt. 4 modified (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 9, 10
Pt. 4 modified (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 12
Pt. 4 modified (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 13(5)
Pt. 4 modified (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 26
Pt. 4 modified (31.12.2007) by Police and Justice Act 2006 (c. 48), s. 53(1), Sch. 3 para. 7; S.I. 2007/3203, art. 3(b)
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)
Pt. 4 modified by The Taxation of Pension Schemes (Transitional Provisions) Order 2006 (S.I. 2006/572), reg. 5A (as inserted (6.4.2006) by S.I. 2008/2990, arts. 1(1), 3)
Pt. 4 applied (21.7.2009) by Finance Act 2009 (c. 10), Sch. 35 para. 18
Pt. 4 modified (19.7.2011) by Finance Act 2011 (c. 11), Sch. 18 para. 14(3)
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)
Pt. 4 modified (17.7.2014) by Finance Act 2014 (c. 26), Sch. 6 para. 1(2)(3)
Pt. 4: power to amend conferred (17.12.2014) by Taxation of Pensions Act 2014 (c. 30), s. 4(3)
Pt. 4 modified (15.9.2016) by Finance Act 2016 (c. 24), Sch. 4 para. 1
Pt. 4 modified (15.9.2016) by Finance Act 2016 (c. 24), Sch. 4 para. 9(2)
C9C10Chapter 5Registered pension schemes: tax charges
Annual allowance charge
227GF1When pension rights are first flexibly accessed
1
References in sections 227B to 227F to when the individual first flexibly accesses pension rights are to the time, or the earlier or earliest of the times, given for that by the following subsections.
2
If—
a
the individual has a member's flexi-access drawdown fund in respect of an arrangement, and
b
the fund came into being—
i
as a result of sums or assets being designated on or after 6 April 2015 as available for the payment of drawdown pension, or
ii
as a result of the operation of paragraph 8D(2) of Schedule 28,
the individual first flexibly accesses pension rights immediately before the first qualifying payment is made from the fund (see subsection (10)).
3
If section 165(3A) applied in the individual's case to an arrangement at any time before 6 April 2015, the individual first flexibly accesses pension rights at the start of 6 April 2015.
4
If—
a
the individual has a member's drawdown pension fund in respect of an arrangement, and
b
the sums and assets that make up the fund become newly-designated funds by the operation of paragraph 8B of Schedule 28,
the individual first flexibly accesses pension rights immediately before the first qualifying payment (see subsection (10)) is made from the individual's member's flexi-access drawdown fund in respect of the arrangement (whether that is the payment that triggers the operation of paragraph 8B of Schedule 28 or a subsequent payment).
5
If—
a
the individual has a member's drawdown pension fund in respect of an arrangement, and
b
the sums and assets that make up the fund become newly-designated funds by the operation of paragraph 8C of Schedule 28,
the individual first flexibly accesses pension rights immediately before the first qualifying payment is made from the individual's member's flexi-access drawdown fund in respect of the arrangement (see subsection (10)).
6
The individual first flexibly accesses pension rights immediately before the payment of the first uncrystallised funds pension lump sum paid to the individual.
7
If the individual is entitled to payment of a lifetime annuity under a flexible annuity contract (see subsection (8)), the individual first flexibly accesses pension rights immediately before the first payment of the annuity is made.
8
In subsection (7) “flexible annuity contract” means a contract for a lifetime annuity where—
a
the annuity is within paragraph 3(1A) of Schedule 28, and
b
the terms of the contract are such that there will or could be decreases in the amount of the annuity other than decreases from time to time allowed by regulations under paragraph 3(1)(d) of Schedule 28 (and any such regulations are to be treated as having effect for this purpose).
9
If—
a
the individual is entitled to payment of a scheme pension under a F3relevant arrangement under a registered pension scheme,
b
the individual became entitled to the scheme pension—
i
on or after 6 April 2015, and
ii
at a time when fewer than 11 other individuals were entitled to the present payment of a scheme pension, or dependants' scheme pension, under the registered pension scheme, and
c
the scheme pension is not payable under an annuity contract treated under section 153(8) or (8A) as having become a registered pension scheme,
the individual first flexibly accesses pension rights immediately before the first payment of the scheme pension is made.
F29A
In subsection (9), “relevant arrangement” means a money purchase arrangement that is not a collective money purchase arrangement.
10
In subsections (2), (4) and (5), a reference to a qualifying payment from a fund is a reference to—
a
payment of income withdrawal from the fund, or
b
payment of a short-term annuity purchased using sums or assets out of the fund,
but does not include payment at a time when the whole of the fund represents rights attributable to a disqualifying pension credit.
F411
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Pt. 4 modified (N.I.) (1.4.2006) by The Firemens Pension Scheme Order (Northern Ireland) 2006 (S.R. 2006/210), arts. 1(2), 103