Finance Act 2011

42 (1) Section 636A of ITEPA 2003 (exemption for certain lump sums under registered pension schemes) is amended as follows. U.K.

(2) In subsection (1)—

(a) in paragraph (b), after “serious ill-health lump sum” insert “ paid to a member who has not reached the age of 75 ”;

(b) in paragraph (d), after “defined benefits lump sum death benefit” insert “ paid in respect of a member who had not reached the age of 75 at the date of the member's death ”;

F1 (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) After subsection (3) insert—

“(3A) A serious ill-health lump sum which is paid under a registered pension scheme to a member who has reached the age of 75 is subject to income tax in accordance with section 205A of FA 2004 (charge to tax on scheme administrator in respect of such a lump sum) but not otherwise.”

(4) In subsection (4)—

(a) before paragraph (a) insert—

“(za) a defined benefits lump sum death benefit paid in respect of a member who had reached the age of 75 at the date of the member's death,”;

(b) after paragraph (a) insert—

“(aa) an uncrystallised funds lump sum death benefit paid in respect of a member who had reached the age of 75 at the date of the member's death,”;

(c) for paragraph (c) substitute—

“(c) a drawdown pension fund lump sum death benefit,”.

(5) In subsection (7)—

(a) after “ “defined benefits lump sum death benefit”,” insert—

““drawdown pension fund lump sum death benefit”,”;

(b) after “ “pension protection lump sum death benefit”,” insert “ and ”;

(c) omit “ “unsecured pension fund lump sum death benefit”,” (and the “and” before it).

Textual Amendments

F1 Sch. 16 para. 42(2)(c) omitted (with application in accordance with Sch. 2 para. 20 of the amending Act) by virtue of Taxation of Pensions Act 2014 (c. 30), Sch. 2 para. 19(4)(a)