The Taxation of Pension Schemes (Transitional Provisions) Order 2006

Contents

438 provisions, too many to show on one page. Open a part or section to read it with its history and connections, or search inside the text.

1. 1 · Citation and commencement
   1. (1) This Order may be cited as the Taxation of Pension Schemes (Transitional Provisions) Order 2006 and shall come into force on 6th April 2006.
   2. (2) In this Order— • “Revenue and Customs” means Her Majesty’s Revenue and Customs (see section 4 of the Commissioners for Revenue and Customs Act 2005); • “the
2. 2 · Payments made from annuities
   1. (1) In its application to any pension scheme which by virtue of paragraph 1(1) of Schedule 36 (pension schemes: transitional provisions and savings)— section 16
   2. (2) In subsection (3) after the words “of a registered pension scheme” add— “or, if the purchase took place before 6th April 2006, a pension scheme which at the
   3. (3) After subsection (3) add— “3A But subsection (4) does not apply to a payment made or benefit provided under or in connection with an annuity which fulfils t
   4. (4) In its application to any pension scheme which falls within sub-paragraph (1)(b) section 161(4) is modified as follows.
   5. (5) For the words “held for the purpose of the pension scheme” substitute “held for the purposes of a registered pension scheme”.
3. 3 · Commencement provisions for unsecured pension funds
   1. (a) was paid by way of income withdrawal, income drawdown or annuity purchase deferral from a retirement benefits scheme, or a personal pension scheme approved
   2. (b) on 6th April 2006 becomes an unsecured pension or a dependant’s unsecured pension by virtue of a scheme which is treated as becoming a registered pension sc
4. 4 · Modification of section 165
   1. (1) Section 165(1) (pension rules) shall be modified as follows.
   2. (2) In pension rule 5 after “basis amount for the unsecured pension year” add “or 100% of that amount during the first reference period as defined in paragraph
   3. (3) Section 167(1) (pension death benefit rules) shall be modified as follows.
   4. (4) In pension death benefit rule 4 after “basis amount for the unsecured pension year” add “or 100% of that amount during the first reference period as defined
5. 5 · Modification of Schedule 28
   1. (1) Schedule 28 (registered pension schemes: authorised pensions—supplementary) shall be modified as follows.
   2. (2) In paragraph 10—
   3. (3) In paragraph 24—
6. 5A · Reduction in rate of pension
   1. (1) Part 4 of the 2004 Act shall be modified as set out in paragraph (2) in a case where the following conditions are satisfied—
   2. (2) In paragraph 2(4) of Schedule 28 to the 2004 Act insert after paragraph (d)— “da a reduction in respect of which an order made under section 283(2) and (3C)
   3. (3) For the purposes of this article, whether something would have prejudiced the approval of the pension scheme by the Inland Revenue or by Her Majesty’s Reven
7. 6 · Transitional protection for continued life cover (75+)
8. 7 · Modification of Chapter 15A of ITEPA 2003
9. 8 · Modification of section 168 and Schedule 29
   1. (1) The 2004 Act is modified as follows.
   2. (2) In section 168(1) (lump sum death benefit rule) after paragraph (i) insert— “j a life cover lump sum.”
   3. (3) In Part 2 of Schedule 29 (registered pension schemes: supplementary provisions about lump sums) after paragraph 21 insert— “21A For the purposes of this Par
10. 9 · Valuation of “primary protection” – compensation for poorly performing investments
11. 10 · Modification of section 212
    1. (1) Section 212 (valuation of uncrystallised rights for the purposes of section 210) is modified, for the purposes of calculating the value of RR in paragraph 7
    2. (2) In subsection (5) (valuation of money purchase arrangements other than cash balance arrangements) after paragraphs (a) and (b) add— “together with the value
    3. (3) After subsection (5) add— “5A For the purposes of subsections (5) and (7) relevant compensation is the market value, calculated in accordance with section 2
    4. (4) In subsection (7) (valuation of hybrid arrangements) after paragraphs (a) and (b) add— “together with any hybrid compensation as defined in subsection (7A)
    5. (5) After subsection (7) add— “7A For the purposes of subsection (7) hybrid compensation is— a any relevant compensation payable in respect of a money purchase
12. 11 · Modification of paragraph 8 of Schedule 36
    1. (1) Part 2 of Schedule 36 (pre-commencement rights: enhancement of allowances etc) is modified as follows.
    2. (2) In paragraph 8(5) after the words “(valuation of uncrystallised rights for the purposes of section 210)” add— “(as modified by article 10 of The Taxation of
13. 12 · “Primary protection” and non residents
    1. (1) Part 4 of the 2004 Act shall have effect subject to the modifications set out in articles 13 and 14 below in its application to any individual to whom eithe
    2. (2) This paragraph applies if the following conditions are met— • Condition A The individual has given the Inland Revenue a notice under sub-paragraph (1)(b) of
    3. (3) This paragraph applies if the following conditions are met— • Condition A The individual has given the Inland Revenue a notice under paragraph 7(1)(b) of Sc
14. 13 · Modification of paragraph 20C of Schedule 36
    1. (a) in sub-paragraph (4), for the definition of B there were substituted— “• “B” is the value of the individual's rights under the arrangement on 5th April 2006
    2. (b) for sub-paragraph (5)(b) there were substituted— “b the value of the individual's rights under the arrangement on 5th April 2006 is the amount which would,
15. 14 · Modification of paragraph 20D of Schedule 36
    1. (a) in sub-paragraph (4), in the definitions of D and E, for “at the beginning of that part of that period” there were substituted “on 5th April 2006 increased
    2. (b) after sub-paragraph (4) there were inserted— “4A D and E are increased by multiplying the appropriate figure by 0.7154.”
16. 15 · Employers or employees with pre-commencement entitlement to corresponding relief
    1. (1) This article applies where Revenue and Customs allow contributions made between 1st April 2005 and 5th April 2006 by an employer under a pension scheme for
    2. (2) Where, at any time on or after 6th April 2006, the employer makes contributions under the pension scheme referred to in paragraph (1) for the benefit of the
    3. (3) The conditions are that—
    4. (4) For the purposes of this article and article 17, “Prescribed benefit crystallisation information requirements“ means requirements imposed by regulation 2 of
17. 16 · Modification of section 245
    1. (1) In a case falling within article 15, section 245 (restriction of deduction for contributions by employer) is modified as follows.
    2. (2) In subsection (5)—
18. 17 · Application of 308A ITEPA 2003
    1. (1) This article applies where—
    2. (2) The conditions are • Condition A The scheme manager of the pension scheme referred to in paragraph (1)(a) complies with any prescribed benefit crystallisati
    3. (3) For the purposes of this article, the provisions of regulation 2 of the Overseas Information Requirements Regulations shall apply to exempt employees.
    4. (4) Section 308A of ITEPA 2003 (exemption of contributions to overseas pension scheme) shall apply in relation to any contributions made on or after 6th April 2
    5. (5) The references in paragraphs (1) and (2) to a pension scheme include a pension scheme to which there has been a block transfer on or after 6th April 2006 fr
    6. (6) In this article “block transfer” has the same meaning as in paragraph 22(6) of Schedule 36 but treating the references there to “the member” as references t
19. 18 · “Enhanced protection” and pension commencement lump sums
20. 19 · Pre-commencement pension and calculation of the “permitted maximum” pension commencement lump sum
21. 20 · Pre-commencement lump sum death benefits
    1. (1) In the case of an individual who dies on or after 6th April 2006 and meets the conditions in paragraph (2) paragraph (3) applies.
    2. (2) The conditions are— • Condition A The individual had an actual right to one or more pre-commencement pensions immediately before his death. • Condition B No
    3. (3) Paragraph 20(2)(b) of Schedule 36 is to be treated as providing that the amount of the lump sum death benefit to which the relevant benefit crystallisation
22. 21 · Transfers and entitlement to lump sums exceeding 25% of uncrystallised rights
    1. (1) Article 23 applies if—
    2. (2) In this article “block transfer” has the meaning given in paragraph 31(8) of Schedule 36 (entitlement to lump sums exceeding 25% of uncrystallised rights).
23. 22 · Modification of paragraph 31 of Schedule 36
24. 23 · Modification of paragraph 34 of Schedule 36
    1. (1) Paragraph (2) below specifies modifications of paragraph 34 of Schedule 36 (entitlement to lump sums exceeding 25% of uncrystallised rights: definition of “
    2. (2) In sub-paragraph (3), for sub-paragraph (1) of the modified paragraph 2 of Schedule 29, substitute— “1 In paragraph 1 “the permitted maximum”, in relation t
25. 23A · Modification of trivial commutation lump sum rules
26. 23B · (1) For subsection (2) (of section 166 (lump sum rule)...
    1. (1) For subsection (2) (of section 166 (lump sum rule) substitute— “a in the case of a pension commencement lump sum, either— i immediately before the person be
27. 23C · (1) Schedule 29 (registered pension schemes: authorised lump sums -...
    1. (1) Schedule 29 (registered pension schemes: authorised lump sums - supplementary) is modified as follows.
    2. (2) For paragraph (aa) of paragraph 1(1) (pension commencement lump sum) substitute— “aa the member becomes entitled to it either— i in connection with becoming
    3. (3) In paragraph 7(1) (trivial commutation lump sum), after the words “trivial commutation lump sum if” insert “it is a lump sum within paragraph 7A or”.
    4. (4) After paragraph 7 insert— “7A 1 A lump sum is within this paragraph if— a it does not exceed £10,000; b the member has reached normal minimum pension age (o
    5. (5) After paragraph 9 insert— “9A If a lump sum is a trivial commutation lump sum by virtue of its being within paragraph 7A, the member shall be treated as not
28. 23D · (1) Schedule 36 (pension schemes etc: transitional provisions and savings)...
    1. (1) Schedule 36 (pension schemes etc: transitional provisions and savings) is modified as follows.
    2. (2) For paragraph 31(3) (entitlement to lump sums exceeding 25% of uncrystallised rights) substitute— “3 The pension condition is that either— a the individual—
    3. (3) In paragraph 34(3), in the modified paragraph 2 of Schedule 29, in sub-paragraph (2), for the definition of D substitute— “• “D” is— (a) in a case in which
29. 23ZA · Pension commencement lump sums where no pension is paid before death
    1. (1) Subject to articles 23ZD and 23ZE, in a case where an individual has received a pension commencement lump sum, or part of a pension commencement lump sum, b
    2. (2) For paragraph 31(3) (entitlement to lump sums exceeding 25% of uncrystallised rights – the pension condition) substitute— “3 The pension condition is that,
    3. (3) In determining the amount of the additional lump sum amount under paragraph 2(2) of Schedule 29, as modified by paragraph 34(3) of Schedule 36 (entitlement
30. 23ZB · Pension commencement lump sums and multiple pensions
    1. (1) Article 23ZC applies where—
    2. (2) Article 23ZD applies where—
    3. (3) Article 23ZE applies where—
    4. (4) The three types of pension are—
    5. (5) The “specified period” is the period of six months beginning with the earliest date on which the individual becomes entitled to any of the pensions or on wh
31. 23ZC · Individual becomes entitled to the pensions
    1. (1) In a case to which this article applies, Part 4 is modified as follows.
    2. (2) For section 166(2)(a) (lump sum rule) substitute— “a in the case of a pension commencement lump sum or a pension commencement excess lump sum, immediately b
    3. (3) In paragraph 31(3) of Schedule 36 for “on the same date” substitute “within a period of six months beginning with the earliest date on which the individual
32. 23ZD · Individual dies before becoming entitled to any of the pensions
    1. (1) In a case to which this article applies, Schedule 36 is modified as follows.
    2. (2) For paragraph 31(3) substitute— “3 The pension condition is that, the scheme administrator considers that, had the individual not died— a the individual wou
    3. (3) In determining the amount of the additional lump sum amount under paragraph 2(2) of Schedule 29, as modified by paragraph 34(3) of Schedule 36 (entitlement
33. 23ZE · Individual dies after becoming entitled to at least one but not all of the pensions
    1. (1) In a case to which this article applies, Part 4 is modified as follows.
    2. (2) For section 166(2)(a) (lump sum rule) substitute— “a in the case of a pension commencement lump sum or a pension commencement excess lump sum, immediately b
    3. (3) For paragraph 31(3) of Schedule 36 substitute— “3 The pension condition is that, the scheme administrator considers that, had the individual not died— a the
    4. (4) In determining the amount of the additional lump sum amount under paragraph 2(2) of Schedule 29, as modified by paragraph 34(3) of Schedule 36 (entitlement
34. 24 · Dependant’s scheme pension limit
    1. (1) Paragraph (2) applies where the member in respect of whom the dependant’s scheme pension is payable was actually entitled to one or more relevant existing p
    2. (2) Paragraph 16A of Schedule 28 shall be modified as follows.
    3. (3) After sub-paragraph (2) add— “3 This paragraph shall not apply to a scheme pension where the member was actually entitled to that pension on 5th April 2006.
35. 25 · Stand-alone lump sums: introductory and definition
    1. (1) This article and articles 25A to 25D deal with stand-alone lump sums.
    2. (2) In those articles— • this article is introductory and sets out the definition of a stand-alone lump sum; • article 25A deals with the conditions that must b
    3. (3) In this article and in articles 25A to 25D a “stand-alone lump sum” means a lump sum which—
36. 25A · Conditions to be met by stand-alone lump sums
    1. (1) This article sets out the conditions referred to in article 25(3)(a).
    2. (2) Condition A is that, on or after 6th April 2006, the lump sum is paid to an individual under a registered pension scheme of which the individual is a member
    3. (3) Condition B is that the lump sum is paid in circumstances where all of the member’s uncrystallised rights under the scheme come into payment on a single rel
    4. (4) Condition C is that the lump sum is paid when the member has reached normal minimum pension age (or the ill-health condition is satisfied).
    5. (5) ................................
37. 25B · Circumstances in which stand-alone lump sums are paid
    1. (1) This article sets out the circumstances referred to in article 25(3)(b).
    2. (2) Circumstance A is where paragraph 28 of Schedule 36 (modification of Chapter 15A of Part 9 of ITEPA 2003 in the case of a member of a pension scheme to whom
    3. (3) Circumstance B is where—
    4. (4) Circumstance C is where—
    5. (5) The assumptions are that—
38. 25C · Payment of stand-alone lump sums: tax consequences
    1. (1) In subsection (1) of section 166 (lump sum rule), the list of lump sums set out in the paragraphs of that subsection shall be treated as including a stand-a
    2. (1A) Articles 25CA to 25CC apply for the purposes of determining the tax treatment of a stand-alone lump sum.
    3. (4) If— subsection (1) of section 227G of the 2004 Act (individual first flexibly accesses pension rights at earliest time given by the following subsections of
39. 25CA · Circumstance A: tax treatment of stand-alone lump sums
    1. (1) Chapter 15A of Part 9 of ITEPA 2003 (pension income: lump sums under registered pension schemes) has effect with the following modifications in relation to
    2. (2) That Chapter has effect as if, after section 637G (trivial commutation lump sums and winding-up lump sums) there were inserted— “637GA 1 Subject to subsecti
    3. (3) Section 637Q of ITEPA 2003 (availability of individual’s lump sum allowance) has effect as if, in the definition of “relevant lump sum” in subsection (2)(b)
    4. (4) Section 637S of ITEPA 2003 (availability of individual’s lump sum and death benefit allowance) has effect as if, in the definition of “relevant lump sum” in
    5. (5) Section 637U of ITEPA 2003 (availability of individual’s allowances where lump sums or lump sum death benefits already paid by non-UK schemes) has effect as
40. 25CB · Circumstance B: tax treatment of stand-alone lump sums
    1. (1) Chapter 15A of Part 9 of ITEPA 2003 (pension income: lump sums under registered pension schemes) has effect with the following modifications in relation to
    2. (2) That Chapter has effect as if, after section 637G (trivial commutation lump sums and winding-up lump sums) there were inserted— “637GA 1 Subject to subsecti
    3. (3) Section 637Q of ITEPA 2003 (availability of individual’s lump sum allowance) has effect as if, in the definition of “relevant lump sum” in subsection (2)(b)
    4. (4) Section 637S of ITEPA 2003 (availability of individual’s lump sum and death benefit allowance) has effect as if, in the definition of “relevant lump sum” in
    5. (5) Section 637U of ITEPA 2003 (availability of individual’s allowances where lump sums or lump sum death benefits already paid by non-UK schemes) has effect as
41. 25CC · Circumstance C: tax treatment of stand-alone lump sums
    1. (1) Chapter 15A of Part 9 of ITEPA 2003 (pension income: lump sums under registered pension schemes) has effect with the following modifications in relation to
    2. (2) That Chapter has effect as if, after section 637G (trivial commutation lump sums and winding-up lump sums) there were inserted— “637GA 1 Subject to subsecti
    3. (3) Section 637Q of ITEPA 2003 (availability of individual’s lump sum allowance), has effect as if, in the definition of “relevant lump sum” in subsection (2)(b
    4. (4) For the purposes of that section, the “non-taxable amount” of a stand-alone lump sum is to be treated as being an amount equal to 25% of the lump sum.
    5. (5) Section 637S of ITEPA 2003 (availability of individual’s lump sum and death benefit allowance) has effect as if, in the definition of “relevant lump sum” in
    6. (6) Section 637U of ITEPA 2003 (availability of individual’s allowances where lump sums or lump sum death benefits already paid by non-UK schemes) has effect as
42. 25D · Stand-alone lump sums: further provisions
    1. (1) Paragraphs (2) and (3) apply if—
    2. (2) The stand-alone lump sum paid must not exceed the stand-alone lump sum maximum.................................
    3. (3) In paragraph (2) “the stand-alone lump sum maximum” means—
    4. (4) Paragraph (5) applies if—
    5. (5) The transferee pension scheme is treated as the same pension scheme as the original pension scheme (so that, accordingly, the transferee pension scheme may
    6. (6) Paragraphs (7) to (9) apply if—
    7. (7) The lump sum payment made by the stand-alone lump sum pension scheme to the member is not a stand-alone lump sum unless the lump sum is also made in the cir
    8. (8) The circumstances are that—
    9. (9) In paragraph (8)(b) “stand-alone lump sum transfer sums” means sums and assets transferred by the transferor scheme to the stand-alone lump sum pension sche
43. 26 · Application of paragraph 31 of Schedule 36
44. 27 · Contracts approved under section 621(1)(b) of ICTA
    1. (1) This article applies in the case of an individual who, immediately before 6th April 2006, had rights under a contract which had been approved under section
    2. (2) Schedule 36 shall be modified as follows.
    3. (3) In paragraph 1(1) (deemed registration of existing schemes) after paragraph (e) insert— “ea a contract approved under section 621(1)(b) of ICTA,”
    4. (4) In paragraph 4 after sub-paragraph (4) add “4A If the pension scheme is within paragraph 1(1)(ea) immediately before that date, the trustee or trustees of t
    5. (5) In paragraph 40(3) (members' contributions to pre-commencement retirement annuity contracts) after paragraph (a) insert— “aa a contract approved under secti
45. 28 · Pre-existing entitlement to lump sums and deferment
    1. (1) In the case of an individual who meets the conditions set out in paragraph (2), paragraph (3) applies.
    2. (2) The conditions are as follows. • Condition A The individual is a member of a scheme which falls within paragraph 1(1)(a), (c), (d) or (e) of Schedule 36. •
    3. (3) Paragraph 1 of Schedule 29 shall be modified, as follows.
46. 29 · Member’s unsecured pension funds
    1. (1) In the case of an individual who meets the conditions set out in paragraph (2), paragraphs (3) to (5) apply.
    2. (2) The conditions are as follows. • Condition A The individual had not reached the age of 75 on 6th April 2006. • Condition B The individual is a member of a s
    3. (3) Paragraph 8 of Schedule 28 (member’s unsecured pension fund) is modified as follows—
    4. (4) For paragraph 9(1) of Schedule 28 substitute— “9 1 “Unsecured pension year” in relation to an unsecured pension referred to in paragraph 8(1A), means— a the
    5. (5) ................................
47. 29A · Member’s unsecured pension funds – further provisions
    1. (1) In the case of an individual who meets the conditions set out in paragraph (2), paragraph (3) applies.
    2. (2) The conditions are as follows. • Condition A The individual is a member of a scheme which falls within paragraph 1(1) of Schedule 36. • Condition B The indi
    3. (3) ................................
48. 30 · Dependant’s unsecured pension funds
    1. (1) In the case of an individual who meets the conditions set out in paragraph (2), paragraphs (3) and (4) apply.
    2. (2) The conditions are as follows. • Condition A The individual had not reached the age of 75 on the 6th April 2006. • Condition B The individual is a dependant
    3. (3) Paragraph 22 of Schedule 28 (dependant’s unsecured pension fund) is modified as follows—
    4. (4) For 23(1) (unsecured pension year and basis amount for unsecured pension year) of Schedule 28 substitute— “23 1 “Unsecured pension year”, in relation to a d
49. 31 · Individuals over the age of 75 and alternatively secured pension funds
    1. (1) In the case of an individual who meets the conditions set out in paragraph (2), paragraph (3) applies.
    2. (2) The conditions are as follows. • Condition A The individual had reached the age of 75 before 6th April 2006. • Condition B The individual is a member of a s
    3. (3) Paragraph 11 of Schedule 28 (member’s alternatively secured pension fund) is modified as follows—
    4. (4) In the case of an individual who meets the conditions set out in paragraph (5), paragraph (6) applies.
    5. (5) The conditions are as follows. • Condition A The individual had reached the age of 75 before 6th April 2006. • Condition B The individual is a member of a s
    6. (6) Paragraph 11 of Schedule 28 (member’s alternatively secured pension fund) shall be modified as follows—
50. 32 · Dependant’s alternatively secured pension funds
    1. (1) In the case of an individual who meets the conditions set out in paragraph (2), paragraph (3) applies.
    2. (2) The conditions are as follows. • Condition A The individual had reached the age of 75 before 6th April 2006. • Condition B The individual is a dependant of
    3. (3) Paragraph 25(1) of Schedule 28 (dependant’s alternatively secured pension fund) shall be modified as follows—
51. 33 · Serious ill-health lump sums, pension protection lump sum death benefits and annuity protection lump sum death benefits
    1. (1) In the case of an individual who meets the conditions set out in paragraph (2), paragraphs (3), (4) and (5) apply.
    2. (2) The conditions are as follows. • Condition A The individual is a member of a scheme which falls within sub-paragraphs 1(1)(a) to (g) of Schedule 36. • Condi
    3. (3) In paragraph 4(2) of Schedule 29 (serious ill-health lump sum) for the words “the member has not previously become entitled to any pension or lump sum” subs
    4. (4) In paragraph 14(3) of Schedule 29 (pension protection lump sum death benefit)—
    5. (5) In paragraph 16(3) of Schedule 29 (annuity protection lump sum death benefit)—
52. 34 · Payments to children aged 23 or over
    1. (1) Paragraph (2) applies to the payment of a pension death benefit by a pension scheme which falls within paragraph 1(1) of Schedule 36 where—
    2. (2) Paragraph 15(2) of Schedule 28 shall be modified as follows—
    3. (3) The Conditions A, B and C mentioned in paragraph (1) are: • Condition A The pension was in payment to a child (“C”) of the member (“M”) on 5th April 2006 or
    4. (4) The scheme rules conditions mentioned in paragraph (1) are: • First scheme rules condition The rules of the pension scheme allowed a pension to be paid to a
    5. (5) For the purpose of the first scheme rules condition, a rule that the pension would not be paid to C if or after C reached a specified age (even if that is b
    6. (6) Paragraph (2) also applies to the payment of a pension death benefit by a qualifying transferee scheme (as to which see article 34B) where either—
53. 34A · Payments to financially dependent children aged 23 or over
    1. (1) Paragraph (2) applies to the payment of a pension death benefit by a pension scheme which falls within paragraph 1(1) of Schedule 36 where—
    2. (2) Paragraph 15(2) of Schedule 28 shall be modified as follows—
    3. (3) The Conditions A to D mentioned in paragraph (1) are: • Condition A The member’s (“M’s”) pension was in payment on or before 1st July 2008. • Condition B Th
    4. (4) The scheme rules condition mentioned in paragraph (1) is: • Scheme rules condition The rules of the pension scheme on 5th April 2006 allowed a pension to be
    5. (5) Paragraph (2) also applies to the payment of a pension death benefit by a qualifying transferee scheme (as to which see article 34B) where—
    6. (6) For the purposes of paragraph (5), the relevant date is—
54. 34B · Meaning of “qualifying transferee scheme”
    1. (1) A pension scheme is a qualifying transferee scheme for the purposes of articles 34 and 34A if it is a pension scheme to which there has been a relevant bloc
    2. (2) A block transfer is relevant if any of Conditions A to C is satisfied as a result of—
    3. (3) The Conditions A to C mentioned in paragraph (2) are: • Condition A The member became a member of the transferee pension scheme. • Condition B The child is
    4. (4) In this article, “block transfer” has the meaning given by paragraph 22(6) of Schedule 36, but with the modification that for “as is prescribed” in paragrap
55. 35 · Enhanced protection and transfers made in connection with the winding up of a pension scheme
    1. (1) In the case of an individual who meets the conditions in paragraph (2), paragraph 12 of Schedule 36 (transitional provisions — “enhanced protection”) is mod
    2. (2) The conditions are— • Condition A The individual is one to whom paragraph 12 of Schedule 36 applies. • Condition B The pension scheme of which the individua
    3. (3) Paragraph 12(8) is modified as follows—
56. 36 · Transfer of crystallised rights with enhanced protection
    1. (1) In the case of an individual who meets the conditions in paragraph (2), paragraph 15 of Schedule 36 (definition of the “relevant crystallised amount”) is mo
    2. (2) The conditions are— • Condition A The individual is one to whom paragraph 12 of Schedule 36 applies. • Condition B The individual is in receipt of a scheme
    3. (3) Paragraph 15 is modified as follows—
57. 37 · Modification of section 637G ITEPA 2003
    1. (1) Section 637G of ITEPA 2003 (trivial commutation and winding-up lump sums) is modified as follows in relation to an equivalent pension benefits commutation l
    2. (2) In the heading, at the end insert “etc”.
    3. (3) In subsection (1)—
    4. (4) In subsection (4), after “In this section” insert “— “• “equivalent pension benefits commutation lump sum” means a lump sum payment arising from the commuta
58. 38 · Lump sum payments — general
59. 39 · Lump sums — serious ill-health
60. 40 · Lump sum death benefits— death of member
    1. (1) This paragraph applies to a lump sum paid—
    2. (2) ................................
    3. (3) A lump sum to which paragraph (1) applies shall be chargeable to income tax in accordance with section 648B of ICTA as if—
    4. (4) For the purposes of a lump sum payment to which paragraph (1) applies, regulation 5 of the Personal Pension Schemes (Information Powers) Regulations 2000 (“
    5. (5) In section 98(5) of the Taxes Management Act 1970 the entry in Table 1 relating to regulations under section 651A(1)(b) to (d) of ICTA shall continue to hav
    6. (6) In this article and article 41— • “the Commissioners” means the Commissioners for His Majesty’s Revenue and Customs and, in relation to times before 18th Ap
61. 41 · Lump sum death benefits — death of a dependant
    1. (1) This paragraph applies to a lump sum paid—
    2. (2) Paragraphs (3) to (5) of article 40 apply for the purposes of paragraph (1) as they apply for the purposes of paragraph (1) of that article.
62. 42 · Protected pension age and multiple pensions
    1. (1) In the case of a member who has a protected pension age in connection with at least two of the three types of pension listed in paragraph (2) from the same
    2. (2) The three types of pension are—
    3. (3) In paragraphs 22(7)(a) and 23(7) for “on the same date” substitute “within a period of six months beginning with the earliest date on which the individual b
63. 43 · Protected pension age and multiple pensions - member dies before receiving all pensions
    1. (1) Schedule 36 is modified in accordance with paragraphs (3) and (4) where—
    2. (2) The “specified period” is the period of six months beginning with the earliest date on which the individual became entitled to any of the benefits in respec
    3. (3) For paragraph 22(7)(a) substitute— “a the scheme administrator considers that, had the individual not died, the member would have become entitled to all the
    4. (4) For paragraph 23(7) substitute— “7 The retirement condition is met in relation to the member and the pension scheme if the scheme administrator considers th
64. 44 · Normal minimum pension age – modification of section 165 (payment of pension rules)
65. 45 · Normal minimum pension age – modification of paragraph 1 of Schedule 29 (lump sum rule)