|
| |
|
(b) | the aggregate of the amounts crystallised on benefit crystallisation |
| |
events in the period beginning with 6th April 2006 and ending with |
| |
the nominated date, as adjusted under sub-paragraph (3). |
| |
(2) | The adjustment referred to in sub-paragraph (1)(a) is the multiplication of |
| |
the value of the member’s pre-commencement pension rights on 5th April |
| 5 |
2006 by—![equation: over[times[char[S],char[L],char[A],char[N]],times[char[F],char[S],char[L],char[A]]]](missing.gif) |
| |
| |
| SLAN is the standard lifetime allowance on the nominated date, and |
| |
| FSLA is £1,500,000 (the standard lifetime allowance for the tax year |
| |
| 10 |
(3) | The adjustment referred to in sub-paragraph (1)(b) is the multiplication of |
| |
the amount crystallised by a previous benefit crystallisation event by—![equation: over[times[char[S],char[L],char[A],char[N]],times[char[P],char[S],char[L],char[A]]]](missing.gif) |
| |
| |
| SLAN is the standard lifetime allowance on the nominated date, and |
| |
| PSLA is the standard lifetime allowance when the previous benefit |
| 15 |
crystallisation event occurred. |
| |
9 (1) | The value of the member’s uncrystallised rights on the nominated date is the |
| |
aggregate value of the member’s uncrystallised rights on that date under |
| |
each arrangement relating to the member under a registered pension |
| |
| 20 |
(2) | The value on the nominated date of the member’s uncrystallised rights |
| |
under such an arrangement is to be calculated in accordance with section 201 |
| |
(valuation of uncrystallised rights for purposes of section 199). |
| |
| |
10 (1) | A lump sum is a winding-up lump sum if— |
| 25 |
(a) | the pension scheme is an occupational pension scheme, |
| |
(b) | the pension scheme is being wound-up, |
| |
(c) | the member’s employer meets the conditions in sub-paragraph (3), |
| |
(d) | it is paid when all or part of the amount that is the individual’s |
| |
lifetime allowance in relation to the member is available, |
| 30 |
(e) | it extinguishes the member’s entitlement to benefits under the |
| |
| |
(f) | it is paid when the member has not reached the age of 75. |
| |
(2) | But if a lump sum falling within sub-paragraph (1) exceeds 1% of the |
| |
standard lifetime allowance when the lump sum is paid, the excess is not a |
| 35 |
| |
(3) | The conditions are that the employer— |
| |
(a) | has made contributions under the pension scheme in respect of the |
| |
| |
(b) | is not making contributions under any other registered pension |
| 40 |
scheme in respect of the member, and |
| |
|
| |
|
| |
|
(c) | undertakes to the Inland Revenue not to make such contributions |
| |
during the period of one year beginning with the day on which the |
| |
| |
Lifetime allowance excess lump sum |
| |
11 | For the purposes of this Part a lump sum is a lifetime allowance excess lump |
| 5 |
| |
(a) | it is paid when none the member’s lifetime allowance is available, |
| |
(b) | it is not a short service refund lump sum or a refund of excess |
| |
| |
(c) | it does not reduce the rate of payment of any pension to which the |
| 10 |
member has become (actually) entitled, or extinguish the member’s |
| |
entitlement to payment of any such pension, |
| |
(d) | it is paid when the member has reached normal minimum pension |
| |
age (or the ill-health condition is met), and |
| |
(e) | it is paid when the member has not reached the age of 75. |
| 15 |
| |
12 (1) | Expressions used in this Part of this Schedule and in Schedule 28 have the |
| |
same meaning in this Part of this Schedule as in Schedule 28. |
| |
(2) | If all or part of the member’s lifetime allowance is available immediately |
| |
before a lump sum is paid, any amount of the lump sum which exceeds the |
| 20 |
member’s available lifetime allowance is to be treated as satisfying |
| |
paragraphs 1(1)(b), 4(1)(b), 7(1)(c) and 10(1)(d). |
| |
(3) | Where by virtue of paragraph 1(2), 5(2), 6(2) or 10(2) an excess is not an |
| |
authorised lump sum of one description, that does not prevent the excess |
| |
being an authorised lump sum of another description; and sub-paragraph |
| 25 |
(2) does not apply for the purposes of determining whether the excess is a |
| |
lump sum of another description. |
| |
(4) | “Authorised lump sum” means a lump sum authorised to be paid by the |
| |
| |
| 30 |
Lump sum death benefit rule |
| |
Defined benefits arrangements |
| |
Defined benefits lump sum death benefit |
| |
13 | For the purposes of this Part a lump sum death benefit is a defined benefits |
| |
lump sum death benefit if— |
| 35 |
(a) | the member had not reached the age of 75 at the date of the member’s |
| |
| |
(b) | it is paid in respect of a defined benefits arrangement, |
| |
(c) | it is paid before the end of the period of two years beginning with the |
| |
day on which the member died, and |
| 40 |
(d) | it is not a pension protection lump sum death benefit, trivial |
| |
commutation lump sum death benefit or winding-up lump sum |
| |
| |
|
| |
|
| |
|
Pension protection lump sum death benefit |
| |
14 (1) | For the purposes of this Part a lump sum death benefit is a pension |
| |
protection lump sum death benefit if— |
| |
(a) | the member had not reached the age of 75 at the date of the member’s |
| |
| 5 |
(b) | it is paid in respect of a defined benefits arrangement, |
| |
(c) | it is paid in respect of a scheme pension to which the member was |
| |
entitled at the date of the member’s death, and |
| |
(d) | the member has specified that it is to be treated as a pension |
| |
protection lump sum death benefit (instead of a defined benefits |
| 10 |
| |
(2) | But if the amount of a lump sum falling within sub-paragraph (1) exceeds |
| |
the pension protection limit, the excess is not a pension protection lump sum |
| |
| |
(3) | The pension protection limit is—![equation: plus[times[char[A],char[C]],minus[times[char[A],char[P]]],minus[times[char[T],char[
P],char[L],char[S]]]]](missing.gif) |
| 15 |
| |
| AC is the amount crystallised by reason of the member becoming |
| |
entitled to the pension (see section 205), |
| |
| AP is the amount of the pension paid in respect of the period between |
| |
the member becoming entitled to the pension and the member’s |
| 20 |
| |
| TPLS is the total amount of pension protection lump sum death |
| |
benefit previously paid under this paragraph. |
| |
Money purchase arrangements |
| |
Uncrystallised funds lump sum death benefit |
| 25 |
15 (1) | For the purposes of this Part a lump sum death benefit is an uncrystallised |
| |
funds lump sum death benefit if— |
| |
(a) | the member had not reached the age of 75 at the date of the member’s |
| |
| |
(b) | it is paid in respect of a money purchase arrangement, |
| 30 |
(c) | it is paid before the end of the period of two years beginning with the |
| |
day on which the member died, and |
| |
(d) | it is paid in respect of relevant uncrystallised funds. |
| |
(2) | “Relevant uncrystallised funds” means such of the sums and assets held for |
| |
the purposes of the arrangement at the member’s death as— |
| 35 |
(a) | had not been applied for purchasing a scheme pension, a lifetime |
| |
annuity, a dependants’ scheme pension or a dependants’ annuity, |
| |
| |
(b) | had not been designated under the arrangement as available for the |
| |
payment of unsecured pension. |
| 40 |
(3) | But if an amount falling within sub-paragraph (1) exceeds the permitted |
| |
maximum, the excess is not an uncrystallised funds lump sum death benefit. |
| |
(4) | The permitted maximum is the aggregate of— |
| |
(a) | the amount of the sums, and |
| |
(b) | the market value of the assets, |
| 45 |
|
| |
|
| |
|
| which constitute the relevant uncrystallised funds immediately before the |
| |
| |
Annuity protection lump sum death benefit |
| |
16 (1) | For the purposes of this Part a lump sum death benefit is an annuity |
| |
protection lump sum death benefit if— |
| 5 |
(a) | the member had not reached the age of 75 at the date of the member’s |
| |
| |
(b) | it is paid in respect of a money purchase arrangement, and |
| |
(c) | it is paid in respect of a scheme pension or lifetime annuity to which |
| |
the member was entitled at the date of the member’s death. |
| 10 |
(2) | But if the amount of a lump sum falling within sub-paragraph (1) exceeds |
| |
the annuity protection limit, the excess is not an annuity protection lump |
| |
| |
(3) | The annuity protection limit is—![equation: plus[times[char[A],char[C]],minus[times[char[A],char[P]]],minus[times[char[T],char[
P],char[L],char[S]]]]](missing.gif) |
| |
| 15 |
| AC is the amount crystallised by reason of the member becoming |
| |
entitled to the pension or annuity (see section 205), |
| |
| AP is the amount of the pension paid in respect of the period between |
| |
the member becoming entitled to the pension or annuity and the |
| |
| 20 |
| TPLS is the total amount of annuity protection lump sum death |
| |
benefit previously paid under this paragraph. |
| |
Unsecured pension fund lump sum death benefit |
| |
17 (1) | For the purposes of this Part a lump sum death benefit is an unsecured |
| |
pension fund lump sum death benefit if— |
| 25 |
(a) | the member had not reached the age of 75 at the date of the member’s |
| |
| |
(b) | it is paid in respect of income withdrawal to which the member was |
| |
entitled under an arrangement at the date of the member’s death. |
| |
(2) | A lump sum death benefit is also an unsecured pension fund lump sum |
| 30 |
| |
(a) | it is paid on the death of a dependant of the member, |
| |
(b) | the dependant had not reached the age of 75 at the date of the |
| |
| |
(c) | it is paid in respect of dependants’ income withdrawal to which the |
| 35 |
dependant was entitled at the date of the dependant’s death in |
| |
respect of an arrangement relating to the member. |
| |
(3) | But if the amount of a lump sum falling within sub-paragraph (1) or (2) |
| |
exceeds the permitted maximum, the excess is not an unsecured pension |
| |
fund lump sum death benefit. |
| 40 |
(4) | The permitted maximum is the aggregate of— |
| |
(a) | the amount of the sums, and |
| |
(b) | the market value of the assets, |
| |
| representing the member’s or dependant’s unsecured pension fund in |
| |
respect of the arrangement immediately before the payment is made. |
| 45 |
|
| |
|
| |
|
Charity lump sum death benefit |
| |
18 (1) | A lump sum death benefit is a charity lump sum death benefit if— |
| |
(a) | the member had reached the age of 75 at the date of the member’s |
| |
| |
(b) | there are no dependants of the member, |
| 5 |
(c) | it is paid in respect of income withdrawal to which the member was |
| |
entitled in respect of an arrangement at the date of the member’s |
| |
| |
(d) | it is paid to a charity nominated by the member. |
| |
(2) | A lump sum death benefit is also a charity lump sum death benefit if— |
| 10 |
(a) | it is paid on the death of a dependant of the member, |
| |
(b) | the dependant had reached the age of 75 at the date of the |
| |
| |
(c) | there are no other dependants of the member, |
| |
(d) | it is paid in respect of dependants’ income withdrawal to which the |
| 15 |
dependant was entitled at the date of the dependant’s death in |
| |
respect of an arrangement relating to the member, and |
| |
(e) | it is paid to a charity nominated by the member (or, if the member |
| |
made no nomination, by the dependant). |
| |
(3) | But if the amount of a lump sum falling within sub-paragraph (1) or (2) |
| 20 |
exceeds the permitted maximum, the amount of the excess is not a charity |
| |
| |
(4) | The permitted maximum is the aggregate of— |
| |
(a) | the amount of the sums, and |
| |
(b) | the market value of the assets, |
| 25 |
| representing the member’s or dependant’s alternatively secured pension |
| |
fund in respect of the arrangement immediately before the payment is made. |
| |
Transfer lump sum death benefit |
| |
19 (1) | For the purposes of this Part a lump sum death benefit is a transfer lump |
| |
| 30 |
(a) | the member had reached the age of 75 at the date of the member’s |
| |
| |
(b) | there are no dependants of the member, |
| |
(c) | it is paid in respect of income withdrawal to which the member was |
| |
entitled in respect of an arrangement at the date of the member’s |
| 35 |
| |
(d) | it is paid so as to become held for the purposes of, or to represent |
| |
accrued rights under, arrangements under the pension scheme |
| |
relating to one or more members of the pension scheme nominated |
| |
by the deceased member (or if the member made no nomination, |
| 40 |
selected by the scheme administrator). |
| |
(2) | A lump sum death benefit is also a transfer lump sum death benefit if— |
| |
(a) | it is paid on the death of a dependant of the member, |
| |
(b) | the dependant had reached the age of 75 at the date of the |
| |
| 45 |
(c) | there are no other dependants of the member, |
| |
|
| |
|
| |
|
(d) | it is paid in respect of dependants’ income withdrawal to which at |
| |
the date of the dependant’s death the dependant was entitled in |
| |
respect of an arrangement relating to the member under the pension |
| |
| |
(e) | it is paid so as to become held for the purposes of, or to represent |
| 5 |
accrued rights under, arrangements under the pension scheme |
| |
relating to one or more members of the pension scheme nominated |
| |
by the relevant person (or if the relevant person made no |
| |
nomination, selected by the scheme administrator). |
| |
(3) | The relevant person is the member or, if no nomination is made by the |
| 10 |
| |
(4) | But if the amount of a lump sum falling within sub-paragraph (1) or (2) |
| |
exceeds the permitted maximum, the amount of the excess is not a transfer |
| |
| |
(5) | The permitted maximum is the aggregate of— |
| 15 |
(a) | the amount of the sums, and |
| |
(b) | the market value of the assets, |
| |
| representing the member’s or dependant’s alternatively secured pension |
| |
fund in respect of the arrangement immediately before the payment is made. |
| |
Defined benefits and money purchase arrangements |
| 20 |
Trivial commutation lump sum death benefit |
| |
20 (1) | A lump sum death benefit is a trivial commutation lump sum death benefit |
| |
| |
(a) | the member had not reached the age of 75 at the date of the member’s |
| |
| 25 |
(b) | it is paid to a dependant entitled under the pension scheme to |
| |
pension death benefit in respect of the member, |
| |
(c) | it is paid before the day on which the member would have reached |
| |
| |
(d) | it extinguishes the dependant’s entitlement under the pension |
| 30 |
scheme to pension death benefit and lump sum death benefit in |
| |
| |
(2) | But if the amount of a lump sum falling within sub-paragraph (1) exceeds |
| |
1% of the standard lifetime allowance on the date the lump sum is paid, the |
| |
excess is not a trivial commutation lump sum death benefit. |
| 35 |
Winding-up lump sum death benefit |
| |
21 (1) | A lump sum death benefit is a winding-up lump sum death benefit if— |
| |
(a) | the pension scheme is being wound-up, |
| |
(b) | it is paid to a dependant entitled under the pension scheme to |
| |
pension death benefit in respect of the member, and |
| 40 |
(c) | it extinguishes the dependant’s entitlement under the pension |
| |
scheme to pension death benefit and lump sum death benefit in |
| |
| |
(2) | But if the amount of a lump sum falling within sub-paragraph (1) exceeds |
| |
1% of the standard lifetime allowance on the date the lump sum is paid, the |
| 45 |
excess is not a winding-up lump sum death benefit. |
| |
|
| |
|
| |
|
| |
| |
22 (1) | Expressions used in this Part of this Schedule and in Schedule 28 have the |
| |
same meaning in this Part of this Schedule as in Schedule 28. |
| |
(2) | Where by virtue of paragraph 14(2), 20(2) or 21(2) an excess is not an |
| 5 |
authorised lump sum death benefit of one description, that does not prevent |
| |
the excess being an authorised lump sum death benefit of another |
| |
| |
(3) | “Authorised lump sum death benefit” means a lump sum death benefit |
| |
authorised to be paid by the lump sum death benefit rule. |
| 10 |
| |
| |
Registered pension schemes: employer loans |
| |
| |
| |
1 (1) | A charge is of adequate value if it meets conditions A, B and C. |
| 15 |
(2) | Condition A is that, at the time the charge is given, the market value of the |
| |
assets subject to the charge— |
| |
(a) | in the case of the first charge to secure the loan, is at least equal to the |
| |
amount owing (including interest), and |
| |
(b) | in any other case, is at least equal to the lower of that amount and the |
| 20 |
market value of the assets subject to the previous charge. |
| |
(3) | Condition B is that if, at any time after the charge is given, the market value |
| |
of the assets charged is less than would be required under condition A if the |
| |
charge were given at that time, the reduction in value is not attributable to |
| |
any step taken by the pension scheme, the sponsoring employer or a person |
| 25 |
connected with the sponsoring employer. |
| |
(4) | Condition C is that the charge takes priority over any other charge over the |
| |
| |
| |
2 (1) | “Loan repayment date” means the date by which the total amount owing |
| 30 |
(including interest) must be paid. |
| |
(2) | A standard loan repayment date is a loan repayment date before the end of |
| |
the period of five years beginning with the date on which the loan is made. |
| |
| |
| 35 |
(a) | the period of 12 months beginning with the date on which the loan is |
| |
| |
(b) | each succeeding period of 12 months. |
| |
|
| |
|