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PART 3U.K.

Modification of Schedule 29U.K.

15.—(1) Schedule 29 is modified as follows.

(2) In paragraph 1 after sub-paragraph (4) insert—

[F1“(4A)  In determining whether all or part of the member’s lifetime allowance is available—

(a)there shall be disregarded any amount treated as crystallising by virtue of a relevant BCE; but

(b)the amount of the allowance available shall be reduced by the amount determined in accordance with sub-paragraph (4B) or (4C), as the case may require.

(4B) Where benefit crystallisation event 8 has occurred, the member’s lifetime allowance that is available shall be reduced by the aggregate of—

(a)the referable portion of any previous pension commencement lump sum paid to or in respect of the member by a recognised overseas pension scheme;

[F2(aa)the referable portion of any previous uncrystallised funds pension lump sum paid to or in respect of the member by a recognised overseas pension scheme;] and

(b)the referable portion of the amount which would have crystallised by virtue of the member becoming entitled to a pension, had the scheme paying it been a registered pension scheme [F3and disregarding paragraph 2 of Schedule 32.]

(4C) Where the paragraph 15 BCE has occurred, the member’s lifetime allowance that is available shall be reduced by the aggregate of—

(a)the referable portion of any previous pension commencement lump sum to which the member became entitled under a relevant non-UK scheme since the paragraph 15 BCE occurred;

[F4(aa)the referable portion of any previous uncrystallised funds pension lump sum to which the member became entitled under a relevant non-UK scheme since the paragraph 15 BCE occurred;] and

(b)in respect of any pension to which the member has become entitled since the paragraph 15 BCE occurred, the referable portion of the amount which would have crystallised by virtue of the member’s becoming entitled to the pension, had the scheme paying it been a registered pension scheme [F5and disregarding paragraph 2 of Schedule 32.”].]

(3) In paragraph 2—

(a)in sub-paragraph (6) for the definition of AAC substitute—

[F6“AAC is the aggregate of—

(a) the amounts crystallised by each benefit crystallisation event (other than a relevant BCE) which has occurred in relation to the member before the member becomes entitled to the lump sum on each occasion on which entitlement to a pension arises[F7, as adjusted under sub-paragraph (7)]; and

(b)if a relevant BCE has occurred, RP.]

[F8RP is the referable portion of the amount which would have crystallised, had the scheme paying it been a registered pension scheme and disregarding paragraphs 2 and 15A of Schedule 32, in respect of any previous pension commencement lump sum [F9or previous uncrystallised funds pension lump sum] or pension to which the member became entitled since the relevant BCE occurred, as adjusted under sub-paragraph (7) (but excluding any amount included in paragraph (a)).]  ”;

[F10(aa)in sub-paragraph (7) for “the relevant amount” substitute “the amount which is, or would have, crystallised”;]

(b)[F11after sub-paragraph (7)] insert—

[F12“(7ZA)] The member’s becoming entitled to a pension commencement lump sum, [F13or to an uncrystallised funds pension lump sum,] or to a pension, as mentioned in [F14the definition of RP] in [F15sub-paragraph (6)] shall be treated as a benefit crystallisation event for the purposes of sub-paragraph (7).”.

[F16(c)after sub-paragraph (7A) insert—

“(7B) But sub-paragraph (7A)(b) does not apply to anything which, but for paragraph 2 or 15A of Schedule 32, would have constituted a relevant BCE.”]

[F17(3A) In paragraph 3, after sub-paragraph (7) insert—

“(7ZA) Where a relevant BCE has occurred in relation to the member, sub-paragraph (6) has effect as if for the definition of “AC” in sub-paragraph (7) there were substituted—

““AC” is —

(a)

in a case where the member becomes entitled to the pension before reaching the age of 75, the referable portion of the amount that, had the scheme been a registered pension scheme, would have crystallised by reason of the member becoming entitled to the pension, disregarding paragraph 3 of Schedule 32, and

(b)

in a case where the member becomes entitled to the pension after reaching that age, the referable portion of the amount that would have been so crystallised (disregarding that paragraph) but for paragraph 2 of that Schedule, had the scheme been a registered pension scheme. ””]

(4) In paragraph 4—

(a)in sub-paragraph (1)(a) after “registered medical practitioner” insert “or a recognised medical practitioner”;

(b)at the end of the paragraph add—

“(4) In sub-paragraph (1) “recognised medical practitioner” means a medical practitioner practising outside the United Kingdom who is authorised, licensed or registered to practise medicine in the country or territory, outside the United Kingdom, in which either the scheme or the member is resident.

[F18(5) In determining whether all or part of the member’s lifetime allowance is available—

(a)there shall be disregarded any amount treated as crystallising by virtue of a relevant BCE; but

(b)the amount of the allowance available shall be reduced by the amount determined in accordance with [F19sub-paragraph (6) or (7)], as the case may require.

(6) Where benefit crystallisation event 8 has occurred, the member’s lifetime allowance that is available shall be reduced by the aggregate of—

(a)the referable portion of any previous pension commencement lump sum paid to or in respect of the member by a recognised overseas pension scheme;

[F20(aa)the referable portion of any previous uncrystallised funds pension lump sum paid to or in respect of the member by a recognised overseas pension scheme;]and

(b)the referable portion of the amount which would have crystallised by virtue of the member becoming entitled to a pension, had the scheme paying it been a registered pension scheme.

(7) Where the paragraph 15 BCE has occurred, the member’s lifetime allowance that is available shall be reduced by the aggregate of—

(a)the referable portion of any earlier pension commencement lump sum to which the member became entitled under a relevant non-UK scheme since the paragraph 15 BCE occurred;

[F21(aa)the referable portion of any earlier uncrystallised funds pension lump sum to which the member became entitled under a relevant non-UK scheme since the paragraph 15 BCE occurred;] and

(b)in respect of any pension to which the member has become entitled since the paragraph 15 BCE occurred, the referable portion of the amount which would have crystallised by virtue of the member’s becoming entitled to the pension, had the scheme paying it been a registered pension scheme [F22and disregarding paragraph 2 of Schedule 32.”].]

[F23(4A) In paragraph 4A (uncrystallised funds pension lump sums) after sub-paragraph (2) insert—

“(2A) In determining for the purposes of sub-paragraph (1)(b) whether all or part of the member's lifetime allowance is available—

(a)disregard any amount treated as crystallising by virtue of a relevant BCE, and

(b)the amount of the allowance available is reduced by the amount determined in accordance with sub-paragraph (2B) or (2C), as the case may require.

(2B) Where benefit crystallisation event 8 has occurred, the member's lifetime allowance that is available is reduced by the aggregate of—

(a)the referable portion of any previous pension commencement lump sum paid to or in respect of the member by a recognised overseas pension scheme,

(b)the referable portion of any previous uncrystallised funds pension lump sum paid to or in respect of the member by a recognised overseas pension scheme, and

(c)the referable portion of the amount which would have crystallised by virtue of the member becoming entitled to a pension, had the scheme paying it been a registered pension scheme and disregarding paragraph 2 of Schedule 32.

(2C) Where the paragraph 15 BCE has occurred, the member's lifetime allowance that is available is reduced by the aggregate of—

(a)the referable portion of any earlier pension commencement lump sum to which the member became entitled under a relevant non-UK scheme since the paragraph 15 BCE occurred,

(b)the referable portion of any earlier uncrystallised funds pension lump sum to which the member became entitled under a relevant non-UK scheme since the paragraph 15 BCE occurred, and

(c)in respect of any pension to which the member has become entitled since the paragraph 15 BCE occurred, the referable portion of the amount which would have crystallised by virtue of the member's becoming entitled to the pension, had the scheme paying it been a registered pension scheme and disregarding paragraph 2 of Schedule 32.”]

(5) In paragraph 5(1)(c) after “benefit crystallisation event” insert—

(6) At the end of paragraph 7 add—

[F25“(6)  In determining whether all or part of the member’s lifetime allowance is available—

(a)there shall be disregarded any amount treated as crystallising by virtue of a relevant BCE; but

(b)the amount of the allowance available shall be reduced by the amount determined in accordance with sub-paragraph (7) or (8), as the case may require [F26and disregarding paragraph 2 of Schedule 32.]

(7) Where benefit crystallisation event 8 has occurred, the member’s lifetime allowance that is available shall be reduced by the aggregate of—

(a)the referable portion of any previous pension commencement lump sum paid to or in respect of the member by a recognised overseas pension scheme; and

[F27(aa)the referable portion of any previous uncrystallised funds pension lump sum paid to or in respect of the member by a recognised overseas pension scheme;]

(b)the referable portion of the amount which would have crystallised by virtue of the member becoming entitled to a pension, had the scheme paying it been a registered pension scheme [F28and disregarding paragraph 2 of Schedule 32.]

(8) Where the paragraph 15 BCE has occurred, the member’s lifetime allowance that is available shall be reduced by the aggregate of—

(a)the referable portion of any earlier pension commencement lump sum to which the member became entitled under a relevant non-UK scheme since the paragraph 15 BCE occurred; and

[F29(aa)the referable portion of any earlier uncrystallised funds pension lump sum to which the member became entitled under a relevant non-UK scheme since the paragraph 15 BCE occurred;]

(b)in respect of any pension to which the member has become entitled since the paragraph 15 BCE occurred, the referable portion of the amount which would have crystallised by virtue of the member’s becoming entitled to the pension, had the scheme paying it been a registered pension scheme [F30and disregarding paragraph 2 of Schedule 32.”].]

(7) At the end of paragraph 10 add—

[F31“(4)  In determining whether all or part of the member’s lifetime allowance is available—

(a)there shall be disregarded any amount treated as crystallising by virtue of a relevant BCE; but

(b)the amount of the allowance available shall be reduced by the amount determined in accordance with sub-paragraph (5) or (6), as the case may require.

(5) Where benefit crystallisation event 8 has occurred, the member’s lifetime allowance that is available shall be reduced by the aggregate of—

(a)the referable portion of any previous pension commencement lump sum paid to or in respect of the member by a recognised overseas pension scheme;

[F32(aa)the referable portion of any previous uncrystallised funds pension lump sum paid to or in respect of the member by a recognised overseas pension scheme;] and

(b)the referable portion of the amount which would have crystallised by virtue of the member becoming entitled to a pension, had the scheme paying it been a registered pension scheme [F33and disregarding paragraph 2 of Schedule 32.]

(6) Where the paragraph 15 BCE has occurred, the member’s lifetime allowance that is available shall be reduced by the aggregate of—

(a)the referable portion of any earlier pension commencement lump sum to which the member became entitled under a relevant non-UK scheme since the paragraph 15 BCE occurred;

[F34(aa)the referable portion of any earlier uncrystallised funds pension lump sum to which the member became entitled under a relevant non-UK scheme since the paragraph 15 BCE occurred;] and

(b)in respect of any pension to which the member has become entitled since the paragraph 15 BCE occurred, the referable portion of the amount which would have crystallised by virtue of the member’s becoming entitled to the pension, had the scheme paying it been a registered pension scheme [F35and disregarding paragraph 2 of Schedule 32.”].]

(8) In paragraph 11 after sub-paragraph (b) insert—

[F36“(bb) it is not paid from the relevant transfer fund of a qualifying recognised overseas pension scheme,

(bc)it is not paid from the UK tax-relieved fund of a relevant non-UK scheme,”].

(9) In paragraph 4(1)(a), and paragraph 19(1)(d) and (2)(e) for “scheme administrator” substitute “scheme manager”.

[F37(9A) In paragraph 12 (interpretation of Part 1), after sub-paragraph (1A) insert—

“(1B) But sub-paragraph (1A)(b) does not apply to anything which, but for paragraph 2 of Schedule 32, would have constituted a relevant BCE.”]

[F38(10) After paragraph 12 add—

“Interpretation of Part 1 – Non-UK Schemes

12A.—(1) The referable portion of a lump sum, pension or an amount which is or would have been crystallised is—

(a)in a case where benefit crystallisation event 8 has occurred, the extent to which it is referable to the member’s relevant transfer fund; or

(b)in a case where the paragraph 15 BCE has occurred, the extent to which it is referable to the member’s UK tax-relieved fund.

(2) In this Part—

“the paragraph 15 BCE” means the benefit crystallisation event treated as occurring by virtue of paragraph 15 of Schedule 34;

“relevant BCE” means—

(a)

benefit crystallisation event 8; or

(b)

the paragraph 15 BCE;

“relevant transfer fund” shall be construed in accordance with paragraph 4(2) of Schedule 34;

“UK tax-relieved fund” shall be construed in accordance with paragraph 3(2) of Schedule 34.”].

Textual Amendments

F2Words in reg. 15(2) inserted (with effect in accordance with Sch. 1 para. 96(16)(a) of the amending Act) by Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 96(4) (with Sch. 1 para. 96(16)(b))

F4Words in reg. 15(2) inserted (with effect in accordance with Sch. 1 para. 96(16)(a) of the amending Act) by Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 96(5) (with Sch. 1 para. 96(16)(b))

F9Words in reg. 15(3)(a) inserted (with effect in accordance with Sch. 1 para. 96(16)(a) of the amending Act) by Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 96(6) (with Sch. 1 para. 96(16)(b))

F13Words in reg. 15(3)(b) inserted (with effect in accordance with Sch. 1 para. 96(16)(a) of the amending Act) by Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 96(7) (with Sch. 1 para. 96(16)(b))

F20Words in reg. 15(4)(b) inserted (with effect in accordance with Sch. 1 para. 96(16)(a) of the amending Act) by Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 96(8) (with Sch. 1 para. 96(16)(b))

F21Words in reg. 15(4)(b) inserted (with effect in accordance with Sch. 1 para. 96(16)(a) of the amending Act) by Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 96(9) (with Sch. 1 para. 96(16)(b))

F23Reg. 15(4A) inserted (with effect in accordance with Sch. 1 para. 96(16)(a) of the amending Act) by Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 96(10) (with Sch. 1 para. 96(16)(b))

F27Words in reg. 15(6) inserted (with effect in accordance with Sch. 1 para. 96(16)(a) of the amending Act) by Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 96(11) (with Sch. 1 para. 96(16)(b))

F29Words in reg. 15(6) inserted (with effect in accordance with Sch. 1 para. 96(16)(a) of the amending Act) by Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 96(12) (with Sch. 1 para. 96(16)(b))

F32Words in reg. 15(7) inserted (with effect in accordance with Sch. 1 para. 96(16)(a) of the amending Act) by Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 96(13) (with Sch. 1 para. 96(16)(b))

F34Words in reg. 15(7) inserted (with effect in accordance with Sch. 1 para. 96(16)(a) of the amending Act) by Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 96(14) (with Sch. 1 para. 96(16)(b))

Commencement Information

I1Reg. 15 in force at 6.4.2006, see reg. 1(1)