SCHEDULES

SCHEDULE 7Personal Pension Schemes

Part IAmendments of Taxes Act

2

1

Section 635 (lump sum to member) shall be amended as follows.

2

The following subsection shall be substituted for subsection (3) (lump sum not to exceed one quarter of value of benefits for member)—

3

The lump sum must not exceed one quarter of the difference between—

a

the total value, at the time when the lump sum is paid, of the benefits provided for by the arrangements made by the member in accordance with the scheme, and

b

the value, at that time, of such of the member’s rights under the scheme as are protected rights for the purposes of the [1986 c. 50.] Social Security Act 1986 or the [S.I. 1986/1888 (N.I. 18).] Social Security (Northern Ireland) Order 1986.

3

Subsection (4) (lump sum not to exceed £150,000 or sum specified by Treasury by order) shall cease to have effect.

4

This paragraph shall have effect in relation to the approval of a scheme on or after the day on which this Act is passed; but if the scheme came into existence before that day sub-paragraph (2) above shall not have effect as regards arrangements made by a member in accordance with the scheme before that day.