SCHEDULES
SCHEDULE 5Pension flexibility
8Trivial commutation lump sum
1
Section 636B of ITEPA 2003 (taxation of trivial commutation, and winding-up, lump sums) is amended as follows.
2
In subsection (3) (taxation of lump sum where member has uncrystallised rights under the pension scheme)—
a
in the words before paragraph (a) omit “(within the meaning of section 212 of FA 2004)”, and
b
in paragraph (b), for “the uncrystallised rights calculated in accordance with that section” substitute “any uncrystallised rights extinguished by the lump sum”.
3
After subsection (4) insert—
5
In this section “uncrystallised rights” has the same meaning as in section 212 of FA 2004; and the value for the purposes of this section of any uncrystallised rights is to be calculated in accordance with that section.