SCHEDULES
SCHEDULE 7Pension schemes
Payments by registered pension schemes: surrender
10
1
Section 172A (payments by registered pension schemes: surrender) is amended as follows.
2
In subsection (5) omit paragraph (d).
3
After subsection (5) insert—
5A
Subsection (5)(b) applies only if the entitlement is held (or is to be held) by the dependant under an arrangement under the pension scheme relating to the member or dependant.
11
In section 207 (authorised surplus payments charge) after subsection (6) insert—
6A
Subsection (1) does not apply to an authorised surplus payment to the extent that the payment is funded (directly or indirectly) by a surrender of (or an agreement to surrender) benefits or rights which results in the registered pension scheme being treated as making an unauthorised payment under section 172A.
6B
Terms used in subsection (6A) which are defined in section 172A have the same meaning as they have in that section.
12
The amendments made by paragraphs 10 and 11 have effect in relation to surrenders (or agreements to surrender) made on or after 20 March 2014.