Amendment of regulation T3
12. In regulation T3 (deduction of tax: further provisions)—
(a)in paragraph (8)(b), for “35%” substitute “55%”; and
(b)after paragraph (8), insert—
“(8A) Where—
(a)a lump sum is payable by virtue of regulation F2 (lump sum when member dies after pension becomes payable); and
(b)that lump sum is payable in respect of a member who had reached the age of 75 at the date of the member’s death,
the scheme administrator shall deduct tax at the rate of 55% (or such other rate as applies under the 2004 Act) from the lump sum payable in accordance with section 206 of the 2004 Act.
(8B) Where—
(a)the Scottish Ministers’ liability to pay a pension under regulation E1 (normal retirement pension) is discharged by the payment of a lump sum in accordance with paragraph (3) of that regulation; and
(b)that lump sum payment is made to a member who has reached the age of 75,
the scheme administrator shall deduct tax at the rate of 55% (or such other rate as applies under the 2004 Act) from the lump sum payable in accordance with section 205A of the 2004 Act.”.