SCHEDULES

SCHEDULE 1Pension flexibility etc

Part 5Miscellaneous amendments

Early lifetime annuities

76

1

In paragraph 7 of Schedule 32 to FA 2004 (benefit crystallisation events 2 and 4: early lifetime annuities) after sub-paragraph (3) insert—

4

Sub-paragraph (5) has effect for the purposes of benefit crystallisation event 2 as it applies in relation to the individual's becoming entitled to the lifetime annuity.

5

If the total of—

a

the sums applied to purchase the lifetime annuity and any related dependants' annuity, and

b

the market value, at the time they are applied, of the assets applied to make the purchase,

is greater than the amount that would apart from this sub-paragraph be the amount crystallised by the event, that total is the amount crystallised by the event.

2

The amendment made by sub-paragraph (1) has effect in relation to a lifetime annuity if, applying the rule in section 165(3)(b) of FA 2004, the annuity is one to which an individual becomes entitled on or after 6 April 2015.