1(1)Part 4 of FA 2004 (registered pension schemes etc) is amended as follows.U.K.
(2)Omit section 205A (serious ill-health lump sum charge on payment to member who has reached 75).
(3)In Part 1 of Schedule 29 (interpretation of lump sum rule), paragraph 4 (serious ill-health lump sums) is amended in accordance with sub-paragraphs (4) and (5).
(4)In sub-paragraph (1) (meaning of “serious ill-heath lump sum”)—
(a)at the end of paragraph (b) insert “ and ”, and
(b)for paragraphs (c) and (d) substitute—
“(ca)either—
(i)it is paid in respect of an uncrystallised arrangement, and it extinguishes the member's entitlement to benefits under the arrangement, or
(ii)it is paid in respect of uncrystallised rights of the member under an arrangement other than an uncrystallised arrangement, and it extinguishes the member's uncrystallised rights under the arrangement.”
(5)After sub-paragraph (2) insert—
“(2A)In subsection (1)(ca)(ii) “uncrystallised rights”, in relation to the member, means rights of the member that are uncrystallised rights as defined by section 212(1) and (2).”