Amendments proposed to the Finance Bill, As Amended - continued House of Commons

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Mr Chancellor of the Exchequer

120

Page     473,     line     2     [Schedule     32],     leave out 'its previous rate' and insert 'the rate at which it was payable on the day on which the individual became entitled to it'.

   

Mr Chancellor of the Exchequer

121

Page     473,     line     6     [Schedule     32],     leave out 'pension was first payable at the previous rate' and insert 'individual became entitled to the pension'.

   

Mr Chancellor of the Exchequer

122

Page     473,     line     20     [Schedule     32],     leave out 'first month in which the pension was payable at the previous rate' and insert 'month in which the individual became entitled to the pension'.

   

Mr Chancellor of the Exchequer

123

Page     473,     line     30     [Schedule     32],     leave out 'its previous rate' and insert 'the rate at which it was payable on the day on which the individual became entitled to it'.

   

Mr Chancellor of the Exchequer

124

Page     473,     line     38     [Schedule     32],     leave out from 'is' to end of line 40 and insert '(subject to sub-paragraph (2)) the amount by which—

            (a)   the increased annual rate of the pension, exceeds

            (b)   the rate at which it was payable on the day on which the individual became entitled to it, as increased by the permitted margin.

    (2) But if one or more benefit crystallisation events has or have previously occurred by reason of the individual having become entitled to payment of the pension at an increased rate, XP does not include the amount crystallised by that event or the aggregate of the amounts crystallised by those events.'.

   

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

24

Page     473,     line     41     [Schedule     32],     at end insert—

'Benefit crystallisation event 4: meaning of "AAF"

    14A  For the purpose of benefit crystallisation event 4 "AAF" is:

      (a) in the case of a lifetime annuity which is not a level annuity, the relevant valuation factor (see section 263); and

      (b) in the case of a lifetime annuity which is a level annuity, the factor certified from time to time by the Government Actuary to be appropriate.

Benefit crystallisation event 4: meaning of "A"

    14B  For the purpose of benefit crystallisation event 4 "A" is the annual amount of the lifetime annuity which will be payable to the individual in the period of 12 months beginning with the day on which the individual becomes entitled to it (assuming that it remains payable throughout that period at the rate at which it is payable on that day).'.


   

Mr Chancellor of the Exchequer

125

Page     474,     line     15     [Schedule     32],     at end insert—

      'Benefit crystallisation event 8: prevention of overlap with other events

    18 (1) This paragraph applies for the purposes of benefit crystallisation event 8.

    (2) Where any of the sums or assets transferred represent the whole or part of the individual's unsecured pension fund, the amount crystallised by the event is to be reduced by the amount (or the appropriate proportion of the amount) previously crystallised on the designation of the sums or assets as available for the payment of unsecured pension.

    (3) Where after the transfer a scheme pension to which the individual has become entitled before the transfer is to be payable out of sums or assets transferred, the amount crystallised by the event is to be reduced by the amount (or the appropriate proportion of the amount) previously crystallised in relation to the scheme pension.'.


   

Mr Chancellor of the Exchequer

126

Page     191,     line     19     [Clause     220],     leave out 'that is not a registered pension scheme'.


   

Mr Chancellor of the Exchequer

127

Page     196,     line     41     [Clause     228],     after 'a' insert 'qualifying'.


   

Mr Chancellor of the Exchequer

128

Page     199,     line     11     [Clause     232],     after 'a' insert 'qualifying'.


   

Mr Chancellor of the Exchequer

129

Page     203,     line     19     [Clause     239],     at end insert—

      '(c) in respect of contributions under a qualifying overseas pension scheme in respect of an individual who is a relevant migrant member of the pension scheme in relation to the contributions,".'.

   

Mr Chancellor of the Exchequer

130

Page     203     [Clause     239],     leave out lines 27 to 29 and insert—

        '""qualifying overseas pension scheme" has the same meaning as in Schedule (Overseas pension schemes: migrant member relief) to the Finance Act 2004 (see paragraphs 5 and 6 of that Schedule);

        "registered pension scheme" has the same meaning as in Part 4 of that Act (see section 147 of that Act);

        "relevant migrant member" has the same meaning as in Schedule (Overseas pension schemes: migrant member relief) to that Act (see paragraph 4 of that Schedule);'.


   

Mr Chancellor of the Exchequer

131

Page     205,     line     34     [Clause     243],     after 'income)' insert—

      '(b) benefits chargeable to tax by virtue of Schedule (Non-UK schemes: application of certain charges) to FA 2004 (which applies certain charges under Part 4 of that Act in relation to non-UK schemes),'.


   

Mr Chancellor of the Exchequer

132

Page     226,     line     28     [Clause     271],     leave out 'and any benefits' and insert ', benefits and a date'.


   

Mr Chancellor of the Exchequer

133

Page     230,     line     33     [Clause     274],     at end insert—

'overseas pension schemesection 147(7)'.


   

Mr Chancellor of the Exchequer

134

Page     231,     line     18     [Clause     274],     at end insert—

'qualifying recognised overseas pension schemesection 166(2)'.

   

Mr Chancellor of the Exchequer

135

Page     231,     line     19     [Clause     274],     leave out '147(7)' and insert '147(8)'.

   

Mr Chancellor of the Exchequer

136

Page     231,     line     32     [Clause     274],     at end insert—

'scheme managersection 166(3)'.


   

Mr Chancellor of the Exchequer

137

Page     232,     line     4     [Clause     274],     at end insert—

'short service refund lump sum chargesection 201(1)
special lump sum death benefits chargesection 202(1)'.


   

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

25

Page     489,     line     20     [Schedule     34],     leave out '25 x ARP' and insert 'the aggregate of—

      (a) the amount of any lump sum paid to the individual, increased from the date of payment to 5th April 2006 by the lesser of 5% per annum and the increase in the retail prices index over that period; and

      (b) 20 x ARP'.


   

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

26

Page     496,     line     22     [Schedule     34],     leave out '25 x ARP' and insert 'the aggregate of—

      (a) the amount of any lump sum paid to the individual, increased from the date of payment to 5th April 2006 by the lesser of 5% per annum and the increase in the retail prices index over that period; and

      (b) 20 x ARP'.


   

Mr Chancellor of the Exchequer

138

Page     497,     line     4     [Schedule     34],     leave out from beginning to end of line 8 and insert—

            '(a)   the pension scheme is a protected pension scheme, and

            (b)   the retirement condition is met in relation to the member and the pension scheme.

    (1A) A pension scheme is a protected pension scheme if condition A or condition B is met.

    (1B) Condition A is met if—

            (a)   the pension scheme was within any of paragraphs (a) to (e) of paragraph 1(1), and

            (b)   the entitlement condition is met in relation to the member and the pension scheme.

    (1C) The entitlement condition is met in relation to the member and the pension scheme if—'.

   

Mr Chancellor of the Exchequer

139

Page     497,     line     16     [Schedule     34],     leave out from beginning to 'and' in line 18 and insert—

    '(3) Condition B is met if the member is a member of the pension scheme as a result of a block transfer to it from a pension scheme ("the original pension scheme") in relation to which condition A is met.

    (3A) A transfer is a block transfer if—

            (a)   it involves the transfer in a single transaction of all the sums and assets held for the purposes of, or representing accrued rights under, the arrangements under the pension scheme from which the transfer is made which relate to the member and at least one other member of that pension scheme, and

            (b)   before the transfer the member was not a member of the pension scheme to which the transfer is made.

    (3B) The retirement condition is met in relation to the member and the pension scheme if—

            (a)   the member becomes entitled to all the pensions payable to the member under arrangements under the pension scheme (to which the member did not have an actual entitlement on or before 5th April 2006) on the same date,'.

 
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Prepared 7 Jul 2004