125.—(1) A lump sum death benefit is treated for the purposes of the 2004 Act as a pension protection lump sum death benefit if and to the extent that—
(a)the member has given written notice to the scheme manager that the lump sum death benefit is to be so treated; and
(b)the lump sum death benefit meets all of the conditions required by the 2004 Act for it to be treated as a pension protection lump sum death benefit (see paragraph 14 of Part 2 (lump sum death benefit rule) of Schedule 29 to the 2004 Act(1)).
(2) Tax may be deducted from the lump sum death benefit if the scheme manager is liable for tax under section 206 (special lump sum death benefits charge) of the 2004 Act(2) in respect of a pension protection lump sum death benefit.
Paragraph 14 was amended by the Finance Act 2011 (c.11) Schedule 16 paragraphs 32 and 34
Section 206 was amended by the Finance Act 2011 (c.11) Schedule 16 paragraph 41 and the Finance Act 2013 (c.29) Schedule 46 paragraphs 119 and 123