Finance Act 2015

Dependants' and nominees' annuities: testing against deceased member's lifetime allowance U.K.

4 (1) In section 216(1) (benefit crystallisation events and amounts crystallised) the table is amended as follows. U.K.

(2) In the second column of the entry relating to benefit crystallisation event 4, after “any related dependants' annuity” insert “and any related nominees' annuity”.

(3) After the entry relating to benefit crystallisation event 5C insert—

“5D. A person becoming entitled, on or after 6 April 2015 but before the end of the relevant two-year period, to a dependants' annuity or nominees' annuity in respect of the individual if— (a) the annuity is purchased using (whether or not exclusively) relevant unused uncrystallised funds, and (b) the individual died on or after 3 December 2014

The aggregate of— (a) the amount of such of the sums, and (b) the market value of such of the assets, applied to purchase the annuity as are relevant unused uncrystallised funds”

5 (1) Section 217 (persons liable to lifetime allowance charge) is amended as follows. U.K.

(2) In subsection (2A) (cases where dependant or nominee liable) after “event 5C,” insert “ or by reason of a person becoming entitled to an annuity as mentioned in the description of benefit crystallisation event 5D, ”.

(3) In subsection (4A) (events 5C and 7 are “relevant post-death” events) after “benefit crystallisation event 5C” insert “ , 5D ”.

6 U.K. In section 219(7A) (events 5C and 7 are “relevant post-death” events) after “benefit crystallisation event 5C” insert “ , 5D ”.

7 U.K. In Schedule 32 (supplementary provisions about benefit crystallisation events)—

(a) in paragraph 1 (meaning of “the relevant pension schemes”: in certain cases means schemes of which the individual was a member immediately before death) after “5C” insert “ or 5D ”,

(b) in paragraph 4(1) (further provision about benefit crystallisation event 4) for the words from “if” to “purchased” substitute “if—

(a) the lifetime annuity or a related dependants' annuity or a related nominees' annuity is, or

(b) the lifetime annuity and a related dependants' annuity are, or

(c) the lifetime annuity and a related nominees' annuity are, or

(d) a related dependants' annuity and a related nominees' annuity are, or

(e) the lifetime annuity and a related dependants' annuity and a related nominees' annuity are,

purchased ”,

(c) in paragraph 14B (event 5C: meaning of “relevant two-year period”), and in the italic heading before that paragraph, for “event 5C” substitute “ events 5C and 5D ”, and

(d) in paragraph 14C(1) (event 5C: meaning of “relevant unused uncrystallised funds”), and in the italic heading before paragraph 14C, for “event 5C” substitute “ events 5C and 5D ”.