Amendments proposed to the Finance Bill - continued House of Commons

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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),

(b)   the member has an actual (rather than a prospective) right to a pension under an arrangement under the pension scheme, and

(c)   under the arrangement a lump sum death benefit is payable if the member dies within the guarantee period.

(2) The guarantee period is the period of five years beginning with the day on which the member became entitled to the pension or, if later, the day on which the pension was first paid.

(3) If the member dies after having reached the age of 75 and before the end of the guarantee period—

(a)   paragraph 14 of Schedule 29 (pension protection lump sum death benefit),

(b)   paragraph 16 of that Schedule (annuity protection lump sum death benefit), and

(c)   paragraph 17 of that Schedule (unsecured pension fund lump sum death benefit),

apply in relation to the member and the arrangement with the following modifications.

(4) Each of those paragraphs applies as if sub-paragraph (1)(a) were omitted.

(5) Paragraph 14(1) applies as if paragraph (d) were omitted.

(6) Paragraph 14(2) applies as if the reference to the pension protection limit were to the transitional protection limit.

(7) Paragraph 16(2) applies as if the reference to the annuity protection limit were to the transitional protection limit.

(8) Paragraph 17(3) applies in relation to a lump sum falling within paragraph 17(1) as if the reference to the permitted maximum were to the transitional protection limit.

(9) Section 195(1) (special lump sum death benefits charge) does not apply to any pension protection lump sum death benefit, annuity protection lump sum death benefit or unsecured pension fund lump sum death benefit paid by virtue of sub-paragraphs (3) to (8).

(10) If the member dies before having reached the age of 75 and before the end of the guarantee period—

(a)   section 195(1) does not apply to so much of any pension protection lump sum death benefit, annuity protection lump sum death benefit or unsecured pension fund lump sum death benefit paid under the arrangement as does not exceed the transitional protection limit, and

(b)   if the arrangement is a defined benefits arrangement, paragraph 14(1)(d) of Schedule 29 is to be treated as satisfied in relation to so much of the lump sum death benefit paid under the arrangement as does not exceed the transitional protection limit.

(11) The transitional protection limit is—

P-TPLS

where—

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'.   

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

266

Schedule     34,     page     482,     line     17,     leave out '75' and insert '80'.

   

Mr Paul Boateng

481

Schedule     34,     page     483,     line     23,     after 'election' insert 'on or'.

   

Mr Paul Boateng

482

Schedule     34,     page     483,     line     27,     leave out 'before 6th' and insert 'on or before 31st'.

   

Mr Paul Boateng

483

Schedule     34,     page     484,     line     20,     leave out 'continues to apply' and insert 'applies'.

   

Mr Paul Boateng

484

Schedule     34,     page     485,     line     2,     at end insert—

'Application of PAYE to certain annuities in payment at commencement

43A (1) Taxable pension income for the tax year 2006-07 or any subsequent tax year determined in accordance with section 612 of ITEPA 2003 for an annuity to which this paragraph applies is to be treated as being PAYE pension income for the tax year by virtue of section 683(3) of that Act (PAYE income).

(2) This paragraph applies to an annuity in payment on 5th April 2006 which—

(a)   would be within paragraph 1(1) but for paragraph 2, or

(b)   would be within paragraph 1(1)(d) if the annuity did not provide for the immediate payment of benefits.'.

   

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

397

Schedule     34,     page     485,     line     10,     leave out 'an employer of an individual makes a relevant consolidation contribution' and insert 'a relevant consolidation contribution is made'.

   

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

398

Schedule     34,     page     485,     line     18,     at end insert 'or a transfer from an arrangement not falling within paragraph 1(1) which was established before 6th April 2006'.

   

Mr Paul Boateng

485

Schedule     34,     page     485,     line     38,     leave out 'Paragraphs 50 to 52 have' and insert 'Paragraph 50 or 51 has'.

   

Mr Paul Boateng

486

Schedule     34,     page     486,     line     2,     leave out 'to which an employee has been' and insert 'of which an employee is'.

   

Mr Paul Boateng

487

Schedule     34,     page     486,     line     9,     leave out 'would be' and insert 'is or are'.

   

Mr Paul Boateng

488

Schedule     34,     page     486,     line     11,     leave out 'has been' and insert 'is'.

   

Mr Paul Boateng

489

Schedule     34,     page     486,     line     13,     leave out 'has been' and insert 'is'.

   

Mr Paul Boateng

490

Schedule     34,     page     486,     line     15,     leave out 'have counted' and insert 'counts or count'.

   

Mr Paul Boateng

491

Schedule     34,     page     486,     line     17,     leave out 'none of paragraphs 50 to 52 apply' and insert 'neither paragraph 50 nor paragraph 51 has effect'.

   

Mr Paul Boateng

492

Schedule     34,     page     486,     line     19,     leave out 'applies' and insert 'has effect'.

   

Mr Paul Boateng

493

Schedule     34,     page     486,     line     25,     at end insert 'or

(b)   the scheme was entered into before 1st September 1993 and has not been varied on or after that date with a view to the provision of benefits under the scheme.'.

   

Mr Paul Boateng

494

Schedule     34,     page     486,     line     28,     after '2003' insert '(charge on benefits from non-approved schemes)'.

   

Mr Paul Boateng

495

Schedule     34,     page     486,     line     32,     after first 'the' insert 'appropriate fraction of the'.

   

Mr Paul Boateng

496

Schedule     34,     page     486,     line     36,     after 'scheme' insert 'is or'.

   

Mr Paul Boateng

497

Schedule     34,     page     486,     line     38,     leave out 'The amount referred to in sub-paragraph (3)(a)' and insert 'For the purposes of sub-paragraph (3)(a)—

(a)   "the appropriate fraction" of the amount of the market value of the assets of the scheme on 5th April 2006 is the same fraction as the fraction of the assets of the scheme to which the employee would have been entitled had the scheme been wound up on that date, and

(b)   the amount of the market value of the assets of the scheme on that date'.

   

Mr Paul Boateng

498

Schedule     34,     page     487,     line     1,     leave out from 'paragraph' to end of line 2 and insert 'has effect if paragraph 50 does not.'.

   

Mr Paul Boateng

499

Schedule     34,     page     487,     line     8,     leave out paragraph 52.

   

Mr Paul Boateng

500

Schedule     34,     page     487,     line     22,     at end insert 'and

(b)   property which is part of or held for the purposes of the fund or scheme does not constitute relevant property for the purposes of Chapter 3 of Part 3 of that Act (settlements without interest in possession).'.


   

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

331

Clause     270,     page     220,     line     34,     at end insert 'except that with effect from the date on which this Act receives Royal Assent no member of any pension scheme described in sub-paragraphs (a) to (g) of paragraph 1(1) to Schedule 34 will be required to buy an annuity on reaching any age and such a member may instead elect for income withdrawal (and Chapter 3 and Schedules 28 and 29 will have effect accordingly in such cases with effect from 6 April 2004).'.



 
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