Finance Act 2024

Amendments of the Registered Pension Schemes (Enhanced Lifetime Allowance) Regulations 2006

94 (1) The Registered Pension Schemes (Enhanced Lifetime Allowance) Regulations 2006 (S.I. 2006/131) are amended as follows.

(2) In the title, for “Lifetime Allowance” substitute “Allowances”.

(3) In regulation 1 (citation and commencement), for “Lifetime Allowance” substitute “Allowances”.

(4) In regulation 2(1) (interpretation)—

(a) for the entry for “relevant lump sum death benefit” substitute—

• ““relevant lump sum death benefit” means—

  (a)

  a defined benefits lump sum death benefit, other than one paid after the end of the relevant two-year period by a registered pension scheme in respect of a member of the scheme who had not reached the age of 75 at the date of the member’s death, or

  (b)

  an uncrystallised funds lump sum death benefit, other than one paid after the end of the relevant two-year period by a registered pension scheme in respect of a member of the scheme who had not reached the age of 75 at the date of the member’s death;”;

(b) in the appropriate places insert—

• ““relevant benefit crystallisation event” has the same meaning as in section 637S of ITEPA 2003 (availability of individual’s lump sum and death benefit allowance);”

• ““the relevant two-year period”, in relation to a member of a registered pension scheme, means the period of two years beginning with the earlier of the day on which the scheme administrator of the scheme first knew of the member’s death and the day on which the scheme administrator could first reasonably have been expected to have known of it;”.

(5) In regulation 3 (reliance on paragraph 7 of Schedule 36 (lifetime allowance enhancement: “primary protection”)), in the heading, for “lifetime allowance enhancement” substitute “enhancement of allowances”.

(6) In regulation 3A (reliance on paragraph 11A of Schedule 36 (lifetime allowance enhancement: “primary protection”: taking account of death benefit))—

(a) in the heading, for “lifetime allowance enhancement” substitute “enhancement of allowances”;

(b) in paragraph (6), for “section 217(2)” substitute “section 579C of ITEPA 2003”.

(7) In regulation 4 (reliance on paragraph 12 of Schedule 36 (lifetime allowances: “enhanced protection”)), in the heading, for “lifetime allowances” substitute “enhancement of allowances”.

(8) In regulation 4A (reliance on paragraph 15A of Schedule 36 (lifetime allowances: “enhanced protection”: taking account of death benefit))—

(a) in the heading, for “lifetime allowances” substitute “enhancement of allowances”;

(b) in paragraph (6), for “section 217(2)” substitute “section 579C of ITEPA 2003”.

(9) In regulation 5 (reliance on paragraph 18 of Schedule 36 (lifetime allowance enhancement: pre-commencement pension credits)—

(a) in the heading, for “lifetime allowance enhancement” substitute “enhancement of allowances”;

(b) in paragraph (1)—

(i) for “benefit crystallisation event” substitute “relevant benefit crystallisation event”;

(ii) for “paragraph 18(1)” substitute “paragraph 18(1)(a)”.

(10) In regulation 6 (reliance on section 220 (lifetime allowance enhancement: registration of pension credits))—

(a) in the heading—

(i) for “section 220” substitute “paragraph 20A of Schedule 36”;

(ii) for “lifetime allowance enhancement” substitute “enhancement of allowances”;

(b) in paragraph (1), for “section 220(1)” substitute “paragraph 20A(1) of Schedule 36”;

(c) in paragraph (2), for “section 220” substitute “paragraph 20A of Schedule 36”;

(d) in paragraph (3), for “section 220” substitute “paragraph 20A of Schedule 36”;

(e) after paragraph (3) insert—

“(3A) The closing date is the earlier of—

(a) the relevant date found under paragraph (4), and

(b) 5 April 2025.”;

(f) in paragraph (4)—

(i) in the words before the first rule, for “closing date” substitute “relevant date”;

(ii) in the words after the second rule, for “closing date” substitute “relevant date”;

(g) in paragraph (6), in the words before sub-paragraph (a), for “section 220” substitute “paragraph 20A of Schedule 36”;

(h) in paragraph (8), in the words before sub-paragraph (a), for “section 220” substitute “paragraph 20A of Schedule 36”.

(11) In regulation 7 (reliance on section 221 (lifetime allowance enhancement: relevant overseas individuals))—

(a) in the heading—

(i) for “section 221” substitute “paragraph 20B of Schedule 36”;

(ii) for “lifetime allowance enhancement” substitute “enhancement of allowances”;

(b) in paragraph (2), for “section 221” substitute “paragraph 20B of Schedule 36”;

(c) in paragraph (3), for “section 221” substitute “paragraph 20B of Schedule 36”;

(d) after paragraph (3) insert—

“(3A) The closing date is the earlier of—

(a) the relevant date found under paragraph (4), and

(b) 5 April 2025.”;

(e) in paragraph (4)—

(i) in the words before the first rule, for “closing date” substitute “relevant date”;

(ii) in the words after the second rule, for “closing date” substitute “relevant date”;

(f) in paragraph (6), in the words before sub-paragraph (a), for “section 221” substitute “paragraph 20B of Schedule 36”;

(g) in paragraph (8), in the words before sub-paragraph (a), for “section 221” substitute “paragraph 20B of Schedule 36”.

(12) In regulation 8 (reliance on section 224 (lifetime allowance enhancement: transfer from recognised overseas pension scheme))—

(a) in the heading—

(i) for “section 224” substitute “paragraph 20E of Schedule 36”;

(ii) for “lifetime allowance enhancement” substitute “enhancement of allowances”;

(b) in paragraph (1), for “section 224(1)” substitute “paragraph 20E(1)”;

(c) in paragraph (2), for “section 224” substitute “paragraph 20E of Schedule 36”;

(d) in paragraph (3), for “section 224” substitute “paragraph 20E of Schedule 36”;

(e) after paragraph (3) insert—

“(3A) The closing date is the earlier of—

(a) the relevant date found under paragraph (4), and

(b) 5 April 2025.”;

(f) in paragraph (4)—

(i) in the words before the first rule, for “closing date” substitute “relevant date”;

(ii) in the words after the second rule, for “closing date” substitute “relevant date”;

(g) in paragraph (6), in the words before sub-paragraph (a), for “section 224” substitute “paragraph 20E of Schedule 36”;

(h) in paragraph (8), in the words before sub-paragraph (a), for “section 224” substitute “paragraph 20E of Schedule 36”.

(13) In regulation 15 (certificates: general), in paragraph (3), for “benefit crystallisation event” substitute “relevant benefit crystallisation event”.