Effect of a lump sum payment where a person is treated as being a deferred member13.
(1)
Subject to paragraph (2), where a person—
(a)
received a lump sum under the scheme rules before the assessment date; and
(b)
is treated as being a deferred member of the scheme immediately before the assessment date by virtue of paragraph 15A of Schedule 7 to the Act,
Schedule 7 to the Act shall apply as if paragraph 19 of Schedule 7 (compensation payable as a lump sum) were omitted.
(2)
Paragraph (1) does not apply where that person received the lump sum by reason of exercising an option to commute any portion of the pension for a lump sum.