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Mr Paul Boateng
517
Schedule 34, page 472, line 27, leave out 'relevant earnings are' and insert 'individual's employment income from the employment to which the arrangement relates is'.
Mr Paul Boateng
518
Schedule 34, page 472, line 28, at end insert—
| '(7) | For the purposes of this paragraph and paragraph 16 the amount of the individual's employment income includes, in relation to any time when the individual is absent from work in connection with pregnancy, maternity, paternity or adoption, what would be likely to be included in that amount if the individual were not so absent.'. |
Mr Paul Boateng
519
Schedule 34, page 472, line 40, leave out 'relevant earnings' and insert 'individual's employment income from the employment to which the arrangement relates'.
Mr Oliver Letwin
Mr Howard Flight [R]
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne
387
Schedule 34, page 473, line 12, leave out '£1,500,000 ('.
Mr Oliver Letwin
Mr Howard Flight [R]
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne
388
Schedule 34, page 473, line 13, leave out ')' and insert '(see section 207)'.
Mr Paul Boateng
520
Schedule 34, page 473, line 31, leave out 'and (5) or paragraph' and insert 'or'.
Mr Oliver Letwin
Mr Howard Flight [R]
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne
389
Schedule 34, page 474, line 15, leave out '25' and insert 'PCPF'
Mr Oliver Letwin
Mr Howard Flight [R]
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne
390
Schedule 34, page 474, line 20, at end insert 'and where PCPF is the pre-commencement pension factor as set out in sub-paragraph (6)'.
Mr Oliver Letwin
Mr Howard Flight [R]
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne
264
Schedule 34, page 474, line 24, leave out '7' and insert '6'.
Mr Paul Boateng
479
Schedule 34, page 474, line 28, leave out 'on 5th April 2006' and insert 'at any time (treating the references there to 5th April 2006 as to that time)'.
Mr Oliver Letwin
Mr Howard Flight [R]
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne
391
Schedule 34, page 474, line 28, at end insert—
'(6) The pre-commencement pensions factor is the appropriate factor certified from time to time by the Government Actuary having regard to the individual's age on 6th April 2006 and the extent to which the individual before that date received a tax free lump sum in lieu of pension'.
Mr Oliver Letwin
Mr Howard Flight [R]
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne
392
Schedule 34, page 474, line 28, at end insert—
'Pre-1989 individuals
| 20 | (1) | This paragraph applies to any individual who was on 5th April 2006 a person in relation to whom section 590C of ICTA (earnings cap) did not have effect ("a pre-1989 individual") in relation to the pension scheme under which the arrangement was made ("the pre-1989 scheme"). |
| | (2) | Notwithstanding anything else in this Act, no charge to income tax will arise in respect of benefits paid to in respect of a pre-1989 individual under the pre-1989 scheme except to the extent that a charge to income tax would have arisen in any event.'. |
Mr Paul Boateng
521
Schedule 34, page 474, line 33, leave out '(except for' and insert 'of this Act (except for section 207(6) and'.
Mr Paul Boateng
522
Schedule 34, page 474, line 36, leave out 'and (5)'.
Mr Paul Boateng
523
Schedule 34, page 475, leave out lines 1 to 8 and insert—
| '(a) | on 5th April 2006 the member had an actual or prospective right under the pension scheme to a pension from an age of less than 55, |
| (b) | the rules of the pension scheme on 10th December 2003 included provision conferring such a right on some or all of the persons who were then members of the pension scheme, and |
| (c) | such a right either was then conferred on the member or would have been had the member been a member of the scheme on that date.'. |
Mr Oliver Letwin
Mr Howard Flight [R]
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne
393
Schedule 34, page 475, line 7, after 'scheme', insert 'or a contractual right under his contract of employment with a sponsoring employer'.
Mr Paul Boateng
524
Schedule 34, page 475, line 14, leave out sub-paragraphs (4) and (5) and insert—
| '(4) | The member's protected pension age is the age from which the member had an actual or prospective right to a pension under the pension scheme. |
| (5) | But this paragraph does not have effect so as to give the member a protected pension age of more than 50 at any time before 6th April 2010.'. |
Mr Paul Boateng
525
Schedule 34, page 476, line 41, leave out from beginning to end of line 2 on page 477 and insert 'have been entitled under the arrangement on 5th April 2006 on the assumption that the individual became entitled to the present payment of a lump sum under the arrangement on that date.
| (7) | In calculating an amount in accordance with sub-paragraph (6) the valuation assumptions apply but 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
| | 24A(1) | This paragraph applies if any of the individual's uncrystallised lump sum 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 lump sum rights on 5th April 2006 under the arrangement, or the aggregate of the values of the individual's uncrystallised lump sum 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 24, and
(b) the maximum permitted lump sum.
| (3) | "The maximum permitted lump sum" means the maximum lump sum 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. |
| (4) | For the purposes of sub-paragraph (3) 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 lump sum 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.
| (5) | Whether an arrangement relating to an individual relates to an employment is to be determined in accordance with paragraph 9(6).'. |
Mr Paul Boateng
526
Schedule 34, page 477, line 8, leave out 'paragraph 24' and insert 'paragraphs 24 and 24A'.
Mr Paul Boateng
527
Schedule 34, page 477, line 20, leave out 'paragraph 24' and insert 'paragraphs 24 and 24A'.
Mr Paul Boateng
528
Schedule 34, page 477, line 22, leave out '(6) and' and insert '(5) to'.
Mr Paul Boateng
529
Schedule 34, page 477, line 23, at end insert—
| ' "(5) | If sub-paragraph (2) does not apply, the permitted maximum is the available portion of the member's lump sum allowance.'. |
Mr Paul Boateng
530
Schedule 34, page 477, line 29, leave out 'paragraph 24' and insert 'paragraphs 24 and 24A'.
Mr Paul Boateng
531
Schedule 34, page 478, line 8, leave out 'Whether or not' and insert 'If (and for so long as)'.
Mr Paul Boateng
532
Schedule 34, page 478, line 12, leave out 'sub-paragraph (1)' and insert 'sub-paragraphs (1) to (3)'.
Mr Paul Boateng
533
Schedule 34, page 478, line 19, leave out 'paragraph 24' and insert 'paragraphs 24 and 24A'.
Mr Paul Boateng
534
Schedule 34, page 478, line 21, leave out 'rights on 5th April 2006' and insert 'pension rights on 5th April 2006, calculated in accordance with paragraphs 8 and 9'.
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