|
Mr Oliver Letwin
Mr Howard Flight [R]
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne
376
Schedule 34, page 466, line 40, leave out ')' and insert '(see section 207)'.
Mr Oliver Letwin
Mr Howard Flight [R]
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne
377
Schedule 34, page 467, line 13, leave out 'the individual has not, on 5th April 2006, become entitled to the present payment of benefits in respect of the rights' and insert 'payment of benefits to the individual in respect of the rights has not commenced on or before 5th April 2006.'.
Mr Oliver Letwin
Mr Howard Flight [R]
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne
378
Schedule 34, page 467, leave out lines 15 to 18.
Mr Oliver Letwin
Mr Howard Flight [R]
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne
379
Schedule 34, page 467, line 19, leave out sub-paragraph (5) and insert—
'(5) Subject to paragraph 9, for the purposes of this paragraph the value of the individual's uncrystalised rights on 5th April 2006 under an arrangement is to be calculated in accordance with section 201 (valuation of uncrystallised rights for the purposes of section 199) as if—
| (a) | at the end of subsection (4) of section 201 the words "and no reduction were applied under the arrangement to take account of early availability" were inserted and |
| (b) | at the end of subsection (7) of section 201 the words "(c) that no reduction had been applied under the arrangement to take account of early payment" were inserted.'. |
Mr Paul Boateng
503
Schedule 34, page 467, line 22, leave out from '199)' to first 'an' in line 33 on page 468 and insert 'on the assumption that the individual became entitled to the present payment of benefits in respect of the rights on that date.
| | (6) | Section 201 has effect for the purposes of sub-paragraph (5) as if the reference to such age (if any) as must have been reached to avoid any reduction in benefits on account of age in paragraph (a) of section (Valuation assumptions) were to the relevant age; and for this purpose "the relevant age" is— |
(a) if on 10th December 2003 the terms of the arrangement made provision for a reduction in the amount of benefits payable in respect of rights under the arrangement on account of the holder of the rights being below a particular age, that age, and
| 9 | (1) | This paragraph applies if any of the individual's uncrystallised rights on 5th April 2006 are rights under one or more arrangements under a pension scheme or schemes within paragraph 1(1)(a) to (d). |
| (2) | The value of the individual's uncrystallised rights on 5th April 2006 under the arrangement, or the aggregate of the values of the individual's uncrystallised rights on 5th April 2006 under such of the arrangements as relate to a particular employment, is the lower of— |
(a) the value, or the aggregate of the values, calculated under paragraph 8, and
(b) the amount arrived at in accordance with sub-paragraph (3).
| (3) | The amount arrived at in accordance with this sub-paragraph is— |
20 x MPP
| | where MPP is the maximum permitted pension. |
| (4) | "The maximum permitted pension" means the maximum annual pension that could be paid to the individual on 5th April 2006 under the arrangement or arrangements if it or they were made under a pension scheme within paragraph 1(1)(a) without giving the Board of Inland Revenue grounds for withdrawing approval of the pension scheme under section 591B of ICTA. |
| (5) | For the purposes of sub-paragraph (4) it is to be assumed— |
(a) if the individual was in the employment to which the arrangement or arrangements relates or relate on 5th April 2006, that the individual left the employment on that date, and
(b) if the individual had not reached the lowest age at which a pension may be paid under a pension scheme within paragraph 1(1)(a) to a person in good health without giving the Board of Inland Revenue grounds for withdrawing the approval of the pension scheme, that that fact would not give the Board such grounds.
| (6) | For the purposes of this paragraph'. |
Mr Oliver Letwin
Mr Howard Flight [R]
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne
380
Schedule 34, page 467, line 29, at end insert 'as if it was not subject to this paragraph 9'.
Mr Oliver Letwin
Mr Howard Flight [R]
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne
381
Schedule 34, page 468, line 2, leave out 'retail prices index' and insert 'national average earnings'.
Mr Paul Boateng
504
Schedule 34, page 468, line 39, leave out 'an' and insert 'the'.
Mr Oliver Letwin
Mr Howard Flight [R]
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne
382
Schedule 34, page 468, line 41, leave out '25' and insert 'PCPF'.
Mr Oliver Letwin
Mr Howard Flight [R]
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne
383
Schedule 34, page 468, line 46, at end insert 'and where PCPF is the pre-commencement pensions factor (see paragraph 19)'.
Mr Paul Boateng
505
Schedule 34, page 469, line 16, at end insert—
| '(2A) | But a pension, annuity or right is not a relevant existing pension if entitlement to it was attributable to the death of any person.'. |
Mr Paul Boateng
506
Schedule 34, page 469, line 44, leave out from beginning to end of line 2 on page 470 and insert 'if notice of intention to rely on it is given to the Inland Revenue in accordance with regulations made by the Board of Inland Revenue.
| (2) | But this paragraph ceases to apply if— |
(a) relevant benefit accrual occurs under the arrangement, or any of the arrangements (see paragraph 13),
(b) a transfer of sums or assets held for the purposes of, or representing accrued rights under, the arrangement or any of the arrangements is made that is not a permitted transfer, or
(c) an arrangement relating to the individual is made under a registered pension scheme otherwise than solely for the purposes of a permitted transfer.'.
Mr Paul Boateng
507
Schedule 34, page 470, line 9, at end insert '; but if sums or assets held for the purposes of, or representing accrued rights under, a relevant existing arrangement are transferred so as to become held for the purposes of, or to represent rights under, another arrangement by a permitted transfer, that arrangement is to be treated for the purposes of sub-paragraph (1) as if it were a relevant existing arrangement.'.
Mr Paul Boateng
508
Schedule 34, page 470, line 12, leave out from beginning to end of line 34 and insert—
'(a) the value of the uncrystallised rights of the individual on 5th April 2006 under an arrangement, or
(b) the aggregate of the values of the uncrystallised rights of the individual on 5th April 2006 under arrangements,
| | is arrived at in accordance with paragraph 9 unless such rights as, in accordance with regulations made by the Board of Inland Revenue, are to be treated as representing the relevant excess have been surrendered. |
| | (6) | In sub-paragraph (5) "the relevant excess" means the amount by which the value of— |
(a) the individual's uncrystallised rights, or
(b) the aggregate of the values of the individual's uncrystallised rights,
(as arrived at in accordance with paragraph 9) exceeds what it would be if arrived at under paragraph 8.
| (7) | For the purposes of this paragraph and paragraphs 13 and 13A, a transfer of sums or assets held for the purposes of, or representing accrued rights under, an arrangement is a permitted transfer if— |
(a) all sums and assets held for the purposes of, or representing rights under, the arrangements relating to the individual under the pension scheme under which the arrangement is made are transferred by the transfer,
(b) the sums or assets held for the purposes of, or representing accrued rights under, the arrangement are transfered so that sub-paragraph (8) applies in relation to them, and
(c) the aggreagate of the amount of those sums and the market value of those assets'.
Mr Oliver Letwin
Mr Howard Flight [R]
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne
384
Schedule 34, page 470, line 20, at end insert 'in a prescribed manner'.
Mr Paul Boateng
509
Schedule 34, page 470, line 36, at end insert—
| '(8) | This sub-paragraph applies in relation to sums or assets held for the purposes of, or representing accrued rights under, the arrangement if— |
(a) they are transferred so as to become held for the purposes of one or more money purchase arrangements under a registered pension scheme or recognised overseas pension scheme, or
(b) where the transfer occurs in connection with the winding up of the pension scheme under which the arrangement is made and the arrangement is a cash balance arrangement or a defined benefits arrangement, they are transferred so as to become held for the purposes of, or to represent rights under, one or more cash balance arrangements or defined benefits arrangements relating to the same employment as the arrangement and made under a registered pension scheme or recognised overseas pension scheme.'.
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