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 ”;
F1(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F2(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.”
F3(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(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
F1Sch. 16 para. 42(2)(b) omitted (with effect in accordance with s. 22(12) of the amending Act) by virtue of Finance (No. 2) Act 2015 (c. 33), s. 22(11)(a)
F2Sch. 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)
F3Sch. 16 para. 42(4) omitted (with effect in accordance with s. 22(12) of the amending Act) by virtue of Finance (No. 2) Act 2015 (c. 33), s. 22(11)(a)