Part 2Income tax, corporation tax and capital gains tax
Chapter 1Personal taxation
Social security pension lump sums
8Meaning of “applicable year of assessment” in section 7
1
For the purposes of section 7 “the applicable year of assessment” has the meaning given by this section.
2
Subject to subsections (5) to (7), the applicable year of assessment is—
a
the year of assessment in which the first benefit payment day falls, or
b
if P dies before the beginning of that year of assessment, the year of assessment in which P dies.
3
For the purposes of subsection (2) “the first benefit payment day” is, subject to subsection (4), the day as from which P's—
a
Category A or Category B retirement pension,
b
shared additional pension, or
c
graduated retirement benefit,
becomes payable following the period of deferment by virtue of which P's entitlement to the lump sum arises.
4
But where—
a
the lump sum is a state pension lump sum to which P is entitled under paragraph 7A of Schedule 5 to SSCBA 1992 or paragraph 7A of Schedule 5 to SSCB(NI)A 1992 or a graduated retirement benefit lump sum to which P is entitled under a provision corresponding to either of those paragraphs, and
b
at the time of S's death, P was entitled to a Category A or Category B retirement pension or (as the case may be) graduated retirement benefit,
the first benefit payment day is the day on which S died; and for this purpose “S” is the person by virtue of whose period of deferment P's entitlement to the lump sum arises.
5
Subsections (6) and (7) apply where social security regulations make provision enabling the making of an election for a social security pension lump sum to be paid in the year of assessment (“the later year of assessment”) next following that given by subsection (2).
6
If such an election is made by P and is not revoked, the applicable year of assessment is—
a
the later year of assessment, or
b
if P dies before the beginning of that year of assessment, the year of assessment in which P dies.
7
If—
a
P dies after the beginning of the later year of assessment,
b
by the time of P's death, P has not notified the Secretary of State as to whether or not P wishes to make such an election,
c
social security regulations make provision enabling the making of such an election in such a case by the personal representatives of P, and
d
P's personal representatives make such an election in accordance with the regulations,
the applicable year of assessment is the later year of assessment.
8
For the purposes of determining the applicable year of assessment, it does not matter when the lump sum is actually paid.
9
In this section—
“Category A or Category B retirement pension” means Category A or Category B retirement pension under Part 2 of SSCBA 1992 or Part 2 of SSCB(NI)A 1992;
“graduated retirement benefit” means graduated retirement benefit under section 36 or 37 of NIA 1965 or section 35 or 36 of NIA(NI) 1966;
“shared additional pension” means shared additional pension under Part 2 of SSCBA 1992 or Part 2 of SSCB(NI)A 1992;
“social security regulations” means any regulations under—
- a
the Social Security Administration Act 1992 (c. 5), or
- b
the Social Security Administration (Northern Ireland) Act 1992 (c. 8).
- a
10
This section is to be construed as one with section 7.