SCHEDULEBENEFIT LIMITS

PART IVLUMP SUMS ON DEATH

13

1

The lump sum death benefit under regulation 13 must not be such as to cause the total of that lump sum and any death benefits totalling £2,500 or more that are payable under relevant schemes to exceed the permitted amount.

2

Relevant schemes are—

a

approved schemes;

b

schemes approved under Chapter IV of Part XIV of the Taxes Act;

c

free-standing additional voluntary contribution schemes;

d

retirement annuity contracts approved under Chapter III of Part XIV of the Taxes Act; and

e

the scheme constituted by the Superannuation Regulations.

3

The permitted amount is £5,000 or, if greater, 4 times the participator’s remuneration.

4

The participator’s remuneration is the greatest of

U, V and W,math

where—

  • U is what the participator’s final remuneration would have been if the date of death had been the material date,

  • V is the participator’s highest year’s adjusted salary for the purpose of calculating U, and

  • W is the participator’s total taxable earnings during any period of 12 months ending not more than 3 years before the date of death, increased as mentioned in paragraph 3(1).