SCHEDULES
SCHEDULE 28Inheritance of tax-relieved pension savings
Amendments of Part 4 of FA 2004
1
Part 4 of FA 2004 (pension schemes etc) is amended as follows.
2
1
Section 172 (assignment) is amended as follows.
2
In subsection (3)—
a
in paragraph (a), for “an actual or” substitute “
a
”
, and
b
in paragraph (b), for “the member” substitute “
a member of the pension scheme
”
.
3
After subsection (6) insert—
6A
References in this section to a benefit to which the member or a person has an entitlement under the pension scheme includes rights to payments under—
a
a scheme pension or dependants' scheme pension provided by the scheme administrator or as a result of the application of sums or assets held for the purposes of the pension scheme, or
b
a lifetime annuity or dependants' annuity purchased by the application of sums or assets held for the purposes of the pension scheme.
3
1
Section 172A (surrender) is amended as follows.
2
In subsection (1), at the end of paragraph (a) (but before the “or”) insert—
aa
any rights to payments under a lifetime annuity or dependants' annuity purchased by the application of sums or assets held for the purposes of the pension scheme,
3
In subsection (3)(a), for “relating to” substitute “
in respect of
”
.
4
In subsection (5), after paragraph (c) insert—
ca
a surrender of (or agreement to surrender) rights to payments under an annuity in any case covered by regulations under paragraph 3(2B) or 17(3) of Schedule 28;
5
After subsection (9) insert—
9A
References in this section to a benefit to which the member or a person has an entitlement under the pension scheme includes rights to payments under—
a
a scheme pension or dependants' scheme pension provided by the scheme administrator or as a result of the application of sums or assets held for the purposes of the pension scheme, or
b
a lifetime annuity or dependants' annuity purchased by the application of sums or assets held for the purposes of the pension scheme.
4
1
Section 172B (increase in rights of connected person on death) is amended as follows.
2
In subsection (2), at the end of paragraph (a) (but before the “or”) insert—
aa
rights to payments under a scheme pension or dependants' scheme pension provided by the scheme administrator or as a result of the application of sums or assets held for the purposes of the pension scheme or under a lifetime annuity or dependants' annuity purchased by the application of sums or assets held for the purposes of the pension scheme,
3
In subsections (3)(a) and (7)(b), for “is actually or prospectively entitled” substitute “
has an actual or prospective entitlement
”
.
4
In subsection (7)—
a
omit paragraph (a) (including the “and” at the end), and
b
in paragraph (b), for “them” substitute “
at least 20 members of the pension scheme
”
.
5
After subsection (7) insert—
7A
This section does not apply if—
a
the increase mentioned in subsection (1)(a) is an increase in the rate of a dependants' annuity or dependants' scheme pension or in rights representing a dependants' unsecured pension fund or dependants' alternatively secured pension fund, and
b
the increase is attributable to rights of the dead member to payments under a dependants' annuity or dependants' scheme pension or rights representing a dependants' unsecured pension fund.
7B
References in this section to a benefit to which the member or a person has an entitlement under the pension scheme includes rights to payments under—
a
a scheme pension or dependants' scheme pension provided by the scheme administrator or as a result of the application of sums or assets held for the purposes of the pension scheme, or
b
a lifetime annuity or dependants' annuity purchased by the application of sums or assets held for the purposes of the pension scheme.
5
In paragraph 16(2) of Schedule 28 (dependants' scheme pension), after “pension” insert “
for the purposes of this Part
”
.
Amendments of IHTA 1984
F16
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F17
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F18
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F19
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F110
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F111
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F112
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F113
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F114
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Commencement
15
1
The amendments made by paragraph 2 have effect in relation to assignments or agreements to assign made on or after 10 October 2007.
2
The amendments made by paragraph 3 have effect in relation to surrenders and agreements to surrender made on or after that date.
3
The amendments made by paragraphs 4, 7(2), 8, 10 and 11 to 14 have effect in relation to deaths occurring on or after 6 April 2008.