SCHEDULES

SCHEDULE 28Inheritance of tax-relieved pension savings

Amendments of Part 4 of FA 2004

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.”