PART 2Modifications of Part 4 of the Finance Act 2004

CHAPTER 3Benefits

Pension commencement lump sum: additional lump sum paid to memberI118

1

Paragraph (2) applies where—

a

as a result of a relevant rectification provision, an amount by way of lump sum (“the additional lump sum”) has become payable to an individual under a pension scheme, and

b

the additional lump sum—

i

is paid to the individual after the end of the period specified in paragraph 1(1)(c) of Schedule 29 to FA 2004 (time period within which pension commencement lump sum23 must be paid)24,

ii

could not reasonably have been paid within that period, and

iii

would, if it had been paid within that period, have been a pension commencement lump sum.

2

The additional lump sum is a pension commencement lump sum.