- Latest available (Revised)
- Original (As enacted)
This is the original version (as it was originally enacted).
23(1)Section 151C (dependant dying with other pension fund) is amended as follows.
(2)For subsection (2) substitute—
“(2)Tax shall be charged on the relevant amount as if it were part of the value transferred by the transfer of value made on the dependant’s death at the rate or rates at which it would be charged if it formed the highest part of that value.”
(3)In subsection (3)(a), after “death” insert “but reduced by the amount of any previously charged income tax”.
(4)After that subsection insert—
“(3A)In subsection (3)(a) above “the amount of any previously charged income tax” means the amount of any liability to income tax which (after the dependant’s death but before the time when tax is charged on the transfer of value treated as made by the dependant on death) has arisen by virtue of the making of an unauthorised member payment under Part 4 of the Finance Act 2004 relating to the dependant’s alternatively secured pension fund.
(3B)Subsection (3C) below applies where the maximum that could be transferred by the chargeable transfer made (under section 4 above) on death if it were to be wholly chargeable to tax at the rate of nil per cent. exceeds—
(a)the value actually transferred by that chargeable transfer, less
(b)any previously untaxed dependant’s alternatively secured pension fund amount.
(3C)Where this subsection applies, tax is to be charged on the previously untaxed dependant’s alternatively secured pension fund amount as if the nil rate band maximum were—
where—
UNRB is the unused nil rate band, that is the excess mentioned in subsection (3B) above; and
MUPR is the maximum unauthorised payment rate, that is the maximum aggregate rate at which tax is chargeable under Part 4 of the Finance Act 2004 in respect of an unauthorised member payment.
(3D)The relevant amount is to be reduced by the aggregate of so much of the sums and the value of the assets of the dependant’s alternatively secured pension fund as arises, or (directly or indirectly) derives, from sums or assets forming part of an alternatively secured pension fund of the member which were designated as available for the payment of—
(a)dependants' unsecured pension, or
(b)dependants' alternatively secured pension,
to the dependant under the arrangement.”
(5)In subsection (4), omit “and” at the end of the definition of “dependant” and insert at the end—
““previously untaxed dependant’s alternatively secured pension fund amount” means so much of the aggregate mentioned in subsection (3)(a) above as has not given rise to any liability to tax by virtue of Part 4 of the Finance Act 2004 before tax is charged on the transfer treated as made by the dependant on death.”
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
Click 'View More' or select 'More Resources' tab for additional information including: