SCHEDULES
SCHEDULE 28Inheritance of tax-relieved pension savings
Amendments of Part 4 of FA 2004
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.