Finance Act 2024

Amendments of Part 4 of FA 2004 (pension schemes etc)

30 (1) In paragraph 7 (trivial commutation lump sum), in sub-paragraph (1)(c), for “lifetime allowance is available” substitute “lump sum allowance is available (see paragraph 12A)”.

(2) In paragraph 8 (trivial commutation lump sum: value of member’s relevant crystallised pension rights on the nominated date), in sub-paragraph (1), for paragraph (b) substitute—

“(b) the amount given by the formula—

where—

• “A” is the member’s lump sum allowance;

• “B” is the amount of the member’s lump sum allowance that is available (see paragraph 12A) on the payment of the lump sum in question;

• “C” is the amount of any serious ill health lump sum already paid to the member so far as it was not chargeable to income tax.”