PART 2Modifications of Part 4 of the Finance Act 2004
CHAPTER 3Benefits
Pension commencement lump sum: additional lump sum paid for deceased memberI124
1
Paragraphs (2) to (5) apply 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 a member (“P”), or to P’s personal representatives, under a pension scheme,
b
the additional lump sum would have been a pension commencement lump sum if it had been paid to P within the period specified in paragraph 1(1)(c) of Schedule 29 to FA 2004 (time period within which pension commencement lump sum must be paid),
c
P dies without having been paid the additional lump sum, and
d
the additional lump sum is paid to P’s personal representatives.
2
The payment—
a
is to be treated as falling within section 164(1) of FA 2004 (authorised member payments);
b
is to be treated as a pension commencement lump sum paid under a registered pension scheme for the purposes of Part 9 of ITEPA 200334.
3
4
The amount crystallised for the purposes of that benefit crystallisation event is the amount of the payment.
5
Regulation 5 of RPS(AP)R 2009 (lump sum errors) does not apply in relation to the payment.