147.—(1) A lump sum death grant is treated for the purposes of FA 2004 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 grant is to be so treated; and
(b)the lump sum death grant meets all of the conditions required by FA 2004 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 FA 2004(1)).
(2) The scheme manager may deduct tax from the lump sum death grant if the scheme manager is liable for tax under section 206 of FA 2004 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.