Finance Act 2011

18 (1) Paragraph 24 of that Schedule (basis amount) is amended as follows. U.K.

(2) For sub-paragraph (1) substitute—

“(A1) This paragraph applies in relation to drawdown pension years beginning on or before the dependant's 75th birthday.

(1) Subject as follows, the period of three drawdown pension years beginning with the first drawdown pension year, and each succeeding period of three drawdown pension years, is a “reference period”.

(1ZA) But the reference period in which the dependant reaches the age of 75 ends with the drawdown pension year in which the dependant reaches that age.”

(3) In sub-paragraph (1B)(b)—

(a) after “subject to” insert “ sub-paragraph (1ZA) and ”;

(b) for “five unsecured pension years” (in both places) substitute “ three drawdown pension years ”.

(4) In sub-paragraphs (2) and (4)—

(a) for “unsecured pension year” substitute “ drawdown pension year ”;

(b) for “dependant's unsecured pension fund” substitute “ dependant's drawdown pension fund ”.

(5) In sub-paragraph (5)—

(a) for “an unsecured pension year” substitute “ a drawdown pension year ”;

(b) for “that unsecured pension year” substitute “ that drawdown pension year ”.

(6) In sub-paragraph (6)—

(a) for “unsecured pension year” substitute “ drawdown pension year ”;

(b) for “dependant's unsecured pension fund” substitute “ dependant's drawdown pension fund ”.

(7) After sub-paragraph (6) insert—

“(6A) But sub-paragraph (5) does not apply where the operation of that sub-paragraph in relation to an additional fund designation during a drawdown pension year would reduce the basis amount for that drawdown pension year.”

(8) In sub-paragraph (7), for “dependant's unsecured pension fund” substitute “ dependant's drawdown pension fund ”.

(9) In sub-paragraph (8)—

(a) for “sums and assets” substitute “ sums or assets ”;

(b) for “unsecured dependants' pension” substitute “dependants' drawdown pension”.

(10) In sub-paragraph (8A), for “dependant's unsecured pension fund” substitute “ dependant's drawdown pension fund ”.

(11) In sub-paragraph (9)(b), for “unsecured pension year” substitute “ drawdown pension year ”.

(12) After sub-paragraph (10) insert—

“(11) Nothing in this paragraph applies in respect of an arrangement to which section 167(2A) applies.”