Amendments proposed to the Finance Bill - continued House of Commons

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Mr Paul Boateng

540

Schedule     34,     page     479,     line     38,     after '2006,' insert 'calculated in accordance with paragraph 29A,'.

   

Mr Paul Boateng

541

Schedule     34,     page     479,     line     40,     after '2006,' insert 'calculated in accordance with paragraph 29B,'.

   

Mr Paul Boateng

542

Schedule     34,     page     479,     line     41,     leave out from beginning to end of line 11 on page 480 and insert—

    '29A (1) Subject to sub-paragraph (2), the value of the individual's uncrystallised lump sum rights under the pension scheme on 5th April 2006 is the aggregate of the value of the individual's uncrystallised lump sum rights under each arrangement in respect of the individual under the pension scheme, calculated in accordance with paragraph 24(5), on that date.

    (2) If the pension scheme is a relevant pension scheme, the value of the individual's uncrystallised lump sum rights on 5th April 2006 under an arrangement—

            (a)   which relates to a particular employment, and

            (b)   in relation to which the excess lump sum condition is met (see sub-paragraph (5) or (6)),

    is the amount arrived at in accordance with sub-paragraph (7) or (8).

    (3) A pension scheme is a relevant pension scheme if it falls within paragraph 1(1)(a) to (d).

    (4) Whether an arrangement relating to the individual relates to a particular employment is to be determined in accordance with paragraph 9(6).

    (5) If no other arrangement relating to the individual under a relevant pension scheme relates to the employment to which the arrangement relates, the excess lump sum condition is met in relation to the arrangement if—

            (a)   the value of the individual's uncrystallised lump sum rights under the arrangement calculated in accordance with paragraph 24(5), exceeds

            (b)   the amount arrived at in relation to the arrangement in accordance with paragraph 24A.

    (6) If one or more other arrangements relating to the individual under a relevant pension scheme or relevant pension schemes relates or relate to the employment to which the arrangement relates, the excess lump sum condition is met in relation to the arrangement if—

            (a)   the aggregate of the values of the individual's uncrystallised lump sum rights under the arrangement and the other arrangement or arrangements, calculated in accordance with paragraph 24(5), exceeds

            (b)   the amount arrived at in relation to those arrangements in accordance with paragraph 24A;

    and the amount by which the aggregate of those values exceeds that amount is the "lump sum excess".

    (7) Where the excess lump sum condition is met by virtue of sub-paragraph (5), the value of the individual's uncrystallised lump sum rights under the arrangement is the amount arrived at in accordance with paragraph 24A.

    (8) Where the excess lump sum condition is met by virtue of sub-paragraph (6), the value of the individual's uncrystallised lump sum rights under the arrangement is the value of those rights calculated in accordance with paragraph 24(5), less the appropriate proportion of the lump sum excess.

    (9) The appropriate proportion of the lump sum excess is —

     V
    AV

    where—

V is the value of the individual's uncrystallised lump sum rights under the arrangement, calculated in accordance with paragraph 24(5), and
AV is the aggregate of the values of the individual's uncrystallised lump sum rights under the arrangement and the other arrangement or arrangements, calculated in accordance with paragraph 24(5).

    29B (1) Subject to sub-paragraph (2), the value of the individual's uncrystallised rights under the pension scheme on 5th April 2006 is the aggregate of the value of the individual's uncrystallised rights under each arrangement in respect of the individual under the pension scheme, calculated in accordance with paragraph 8(5).

    (2) If the pension scheme is a relevant pension scheme, the value of the individual's uncrystallised rights on 5th April 2006 under an arrangement—

            (a)   which relates to a particular employment, and

            (b)   in relation to which the excess rights condition is met (see sub-paragraph (5) or (6)),

    is the amount arrived at in accordance with sub-paragraph (7) or (8).

    (3) A pension scheme is a relevant pension scheme if it falls within paragraph 1(1)(a) to (d).

    (4) Whether an arrangement relating to the individual relates to a particular employment is to be determined in accordance with paragraph 9(6).

    (5) If no other arrangement relating to the individual under a relevant pension scheme relates to the employment to which the arrangement relates, the excess rights condition is met in relation to the arrangement if—

            (a)   the value of the individual's uncrystallised rights under the arrangement calculated in accordance with paragraph 8(5), exceeds

            (b)   the amount arrived at in relation to the arrangement in accordance with paragraph 9(3).

    (6) If one or more other arrangements relating to the individual under a relevant pension scheme or relevant pension schemes relates or relate to the employment to which the arrangement relates, the excess rights condition is met in relation to the arrangement if—

            (a)   the aggregate of the values of the individual's uncrystallised rights under the arrangement and the other arrangement or arrangements, calculated in accordance with paragraph 8(5), exceeds

            (b)   the amount arrived at in relation to those arrangements in accordance with paragraph 9(3);

    and the amount by which the aggregate of those values exceeds that amount is the "rights excess".

    (7) Where the excess rights condition is met by virtue of sub-paragraph (5), the value of the individual's uncrystallised rights under the arrangement is the amount arrived at in accordance with paragraph 9(3).

    (8) Where the excess rights condition is met by virtue of sub-paragraph (6), the value of the individual's uncrystallised rights under the arrangement is the value of those rights calculated in accordance with paragraph 8(5), less the appropriate proportion of the rights excess.

    (9) The appropriate proportion of the rights excess is—

     V
    AV

V is the value of the individual's uncrystallised rights under the arrangement, calculated in accordance with paragraph 8(5), and
AV is the aggregate of the values of the individual's uncrystallised rights under the arrangement and the other arrangement or arrangements, calculated in accordance with paragraph 8(5).'.   

Mr Paul Boateng

543

Schedule     34,     page     480,     line     16,     leave out 'that occasion' and insert 'the individual and the pension scheme'.

   

Mr Paul Boateng

544

Schedule     34,     page     480,     line     18,     leave out from beginning to end of line 24 and insert 'the individual becomes entitled to all the pensions payable to the individual under arrangements under the scheme (and to which the individual did not have an actual entitlement on or before 5th April 2006) on the same date.'.

   

Mr Paul Boateng

545

Schedule     34,     page     480,     line     26,     leave out 'for sub-paragraphs (5) to (7)' and insert 'the reference in sub-paragraph (2) to the arrangement under which the member becomes entitled to the relevant pension were to the pension scheme and for sub-paragraphs (5) to (8)'.

   

Mr Oliver Letwin
Mr Howard Flight [R]
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne

394

Schedule     34,     page     480,     leave out line 31 and at end insert—
(      VULSR      xCSLA
FSLA
) + ALSA

   

Mr Oliver Letwin
Mr Howard Flight [R]
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne

395

Schedule     34,     page     480,     leave out line 35 and insert—
VULSR   x   CSLA
FSLA

   

Mr Paul Boateng

546

Schedule     34,     page     480,     line     39,     leave out '29' and insert '29A'.

   

Mr Paul Boateng

547

Schedule     34,     page     481,     line     12,     leave out '29' and insert '29B'.

   

Mr Oliver Letwin
Mr Howard Flight [R]
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne

396

Schedule     34,     page     481,     line     20,     leave out '30' and insert '20 to'.

   

Mr Oliver Letwin
Mr Howard Flight [R]
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne

265

Schedule     34,     page     482,     line     1,     leave out '75' and insert '80'.

   

Mr Paul Boateng

480

Schedule     34,     page     482,     line     4,     leave out from first 'scheme' to second 'the' in line 27 and insert 'is within any of paragraphs (a) to (e) of paragraph 1(1),

P-TPLS

P is the amount of pension to which (had the member lived) the member would have been entitled under the arrangement in respect of the period beginning with the day of the member's death and ending with the last day of the guarantee period, and
TPLS is the amount of any pension protection lump sum death benefit, annuity protection lump sum death benefit or unsecured pension fund lump sum death benefit previously paid in respect of'.

 
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Prepared 17 Jun 2004