Amendments proposed to the Finance Bill - continued House of Commons

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Mr Paul Boateng

535

Schedule     34,     page     478,     leave out lines 27 to 40.

   

Mr Paul Boateng

536

Schedule     34,     page     478,     leave out line 41 and insert—

    '(2) For the purposes of sub-paragraph (1) there is to be deducted from the aggregate of the lump sum and the amount of the sums and the market value of the assets designated as available for the payment of unsecured pension so much (if any) of that amount as represents rights which are attributable to a disqualifying pension credit.'.

   

Mr Paul Boateng

537

Schedule     34,     page     479,     line     4,     leave out '(6) and' and insert '(5) to'.

   

Mr Paul Boateng

538

Schedule     34,     page     479,     line     5,     at end insert—

    '"(5) There is to be deducted from the aggregate of the amount of the lump sum and the annuity purchase price—

            (a)   if the annuity is purchased (in whole or in part) by the application of sums or assets representing the whole or part of the member's unsecured pension fund, the aggregate of the amount of those sums and the market value of those assets, and

            (b)   in any case, so much (if any) of the aggregate of the lump sum and the annuity purchase price as represents rights which are attributable to a disqualifying pension credit.'.

   

Mr Paul Boateng

539

Schedule     34,     page     479,     line     24,     leave out 'paragraphs 26 and 27' and insert—

            '(a)   paragraphs 25 and 27 (in the case of an individual in relation to whom paragraph 12 applies), or

            (b)   paragraph 26 (in the case of an individual in relation to whom paragraph 12 does not apply),'.

   

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
      where—

      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   x    CSLA
    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
     
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    Prepared 22 Jun 2004